Education Loan for MBA Abroad: Complete Guide

As per the India Skills Report of 2022, MBA graduates are projected to have an employability rate of 55.09% in 2023 - 2024 and the trend will only go up, surpassing all other fields except engineering. This indicates that an MBA degree holds significant employability potential compared to other disciplines. With its global recognition, pursuing an MBA abroad is a popular choice among students. However, it's crucial to acknowledge the substantial costs associated with this program. To meet their financial requirements, many international students wisely consider education loans and thus knowing how to get education loan for mba becomes important. To ensure an informed decision about pursuing an MBA abroad, exploring the available loan options becomes imperative.

Cost of MBA Abroad

Before knowing how to get education loan for MBA it is important there are a variety of expenses on an international student’s plate even before leaving for an MBA abroad. MBA fees in foreign countries must include the pre-arrival expenses related to entrance exam registration fees, application fees, visa application fees, airfare, etc. Take a look at some of the estimated pre-arrival expenses that are part of MBA abroad for Indian students fees:

Likewise, the tuition fee is a crucial expense to consider when applying for an MBA program abroad. To provide an overview of the average tuition fees, here is a table showcasing the costs for some of the top study-abroad destinations:

Lastly, the cost of living is an essential expense that international students pursuing an MBA must consider, as it constitutes a significant portion of their total expenses during their study abroad period. It is crucial to account for the cost of housing, transportation, meals, healthcare, and other daily expenses when planning for your MBA journey abroad. The average cost of living for some of the popular study-abroad countries is listed in the table below:

Now that you have a comprehensive understanding of all the expenses involved, you are well-prepared to embark on your MBA journey at an international destination. If these expenses may seem daunting, there's no need to worry. Taking an education loan to finance your MBA can be a viable solution, and we have you covered. We provide a range of lending options to choose from, ensuring that you can secure an education loan that suits your needs.

Types of Education Loans for MBA Abroad

Broadly there are 2 types of education loans that one can take to study MBA abroad. They are - 

• An education loan with collateral, also known as a secured education loan, requires the applicant to provide security or collateral as part of their loan application. This collateral can take various forms, such as residential property or other assets. To learn more about the different types of collateral accepted, you can click here for further information.
• An unsecured education loan is a loan type that does not necessitate the borrower to provide collateral as security. However, due to the higher risk involved, the interest rates on these loans are usually higher. Additionally, unsecured education loans typically require a co-applicant or co-signer, and the loan amount is determined based on the co-applicant's income and CIBIL score.

Secured Education Loan for MBA Abroad

Secured loans require collateral, allowing for higher loan amounts and potentially eliminating the need for a co-applicant. For education loans to pursue an MBA abroad, consider SBI and UBI as public sector bank options.

Unsecured Loan Options for MBA Abroad

No collateral? No problem. Private banks, NBFCs, and international lenders can help you secure an education loan for studying MBA abroad. Private banks and NBFCs may require a co-applicant with a minimum income and no liabilities, while international lenders offer loans without a co-applicant. International lenders provide loans in USD, which can save on foreign exchange charges, but their interest rates are typically higher.

Education loan for experienced professionals - ICICI Bank offers a loan option for applicants with a minimum of 3 years of experience, eliminating the need for a co-applicant. The loan amount and other variables remain unchanged as shown in the table above. Two additional requirements include a minimum monthly income of INR 35,000 (which may increase for higher loan amounts) and the necessity to create a Fixed Deposit (FD) to cover the total Simple Interest payable during the moratorium period, ensuring a free moratorium.

Eligibility and Documents Required for Education Loan for MBA

The documents that will be required in order to get a loan for MBA abroad are as follows - 

• Loan application form
• Proof of admission: admission letter from university/institution
• Fee structure from the university
• Academic transcripts (School and Bachelor’s)
• Standardized test scores - GMAT or GRE
• English proficiency test score - IELTS, TOEFL or Duolingo
• Applicant’s KYC documents
• Passport-size photographs
• Resident proof of the applicant and co-applicant
• Income proof of the co-applicant (for unsecured education loan)
• Property papers (in case of secured education loan)

To ensure a seamless process flow, there are certain eligibility criteria that you need to fulfill. These criteria include:

• University admit letter with its fee structure.
• The applicant has to be at least 18 years of age.
• Applicant’s should have good academic experience. 
• Score of GMAT and IELTS/TOEFL.

How to get Education Loan for MBA Abroad?

Securing an education loan for studying MBA abroad can be a smooth process if done correctly and with the right institution. It is advisable to start the loan application process around 4 to 6 months before your desired enrollment date to ensure a hassle-free experience. Instead of managing the process independently with multiple lenders, GyanDhan offers a simplified solution for obtaining an education loan.

The following steps demonstrate how GyanDhan can assist you in easily securing an international education loan for studying MBA.

1. 
   Assess your eligibility for an MBA abroad loan on GyanDhan's platform.
2. 
   Connect with a dedicated loan expert who will guide you through the application process and recommend suitable lenders.
3. 
   Receive a customized document checklist to simplify the document arrangement process.
4. 
   Submit the required documents either in hard copy or soft copy as per the lender's instructions.
5. 
   Await verification, typically takes 7 to 15 days. Once approved, sign the agreement letter and track progress on GyanDhan's user dashboard.
6. 
   Initiate disbursement following the lender's procedures, with funds directly deposited into your account or disbursed to the university by international lenders.

How to Choose the Best Lender?

When exploring education loan options for MBA abroad GyanDhan offers valuable advice to assist you in selecting the most suitable loan with a minimal financial burden in the long run. To ensure an informed decision, it is essential to compare the following aspects among lenders and loan schemes:

• Interest Rate
• Processing fee and time
• Margin Money
• Moratorium Period
• Tax Benefit
• Loan Duration
• Covered Expenses
• Prepayment terms and conditions

By carefully evaluating these factors, you can select the best educational loan option that aligns with your needs and offers favorable terms and conditions.

Before initiating the education loan application process MBA abroad, thorough research and comparison of different lenders' offerings based on various factors are crucial. However, GyanDhan simplifies this process by providing direct and continuous assistance. GyanDhan’s streamlined education loan process ensures a hassle-free experience, and our expert education loan counselor will assess your academic and financial profile to discuss the best loan options. GyanDhan has partnered with multiple lenders, including government banks, private banks, NBFCs, and international lenders. Take the next step now and check your loan eligibility without delay!

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