Tips Before Applying a Loan for MBA Abroad

As per the India Skills Report of 2025, MBA graduates are projected to have an employability rate of 78% in 2024 - 2025 which shows a 28% increase then last year. Hence, showcases the significance an MBA degree holds in employability potential compared to other disciplines. The global recognition of the MBA increased its popularity among students.

The most important metric of pursuing the MBA is the monetary funds that are required to support your education. Thus, many Indian students look for education loan for MBA abroad, which we have covered in this blog. This answers your main question about how to get education loan for MBA. 

Cost of MBA Abroad

Before knowing how to get education loan for MBA, knowing about the expenses is important. You need to calculate the pre-arrival expenses, living fees, and tuition fees. Take a look at the estimated costs you can consider while studying MBA abroad.

Pre-arrival Costs:

The pre-arrival expenses are related to the costs that are spent when you have just started your preparation for abroad education. These expenses include entrance exam registration fees, application fees, visa application fees, airfare, etc. Usually, student loan for MBA abroad don’t cover these costs. 

Tuition Fees for MBA:

Tuition fee is the primary expense when you are considering applying for the MBA program abroad. But, the cost may vary based on the country and the university. You can use the table below to get an overview of the average tuition fees for the popular study-abroad destinations:

Living Cost Abroad:

The cost of living is an essential expense that is required to be available as immediate funds. It constitutes a significant portion of their total expenses during their abroad study. It includes your cost of housing, transportation, meals, healthcare, and other daily expenses. The average cost of living for some of the popular study-abroad countries is listed in the table below:

The above would have helped you understand all the expenses involved in your MBA study. If these expenses may seem daunting, there's no need to worry. Taking an education loan for MBA abroad can cover most of these expenses. We have listed all the lenders for the student loan for MBA abroad that cover every applicant profile.

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.

Financial Institutions Offering Education Loans for MBA

When you apply for an education loan MBA abroad many institutions provide the loan for the MBA abroad. The list includes public banks, private banks, NBFCs, and International lenders. Public and Private Banks include both secured and unsecured loan options however, NBFCs and international lenders provide unsecured loan options. Let’s understand these institutions based on the type of loan for MBA abroad they provide. 

Indian Banks for MBA Abroad Education Loans:

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.

If you have professional experience then you can use it to secure an education loan for MBA abroad. ICIC Bank offers loan options to applicants with a minimum of 3 years of experience. You can apply for this education loan without a co-applicant. 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.

NBFCs for MBA Abroad Education Loans:

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.

International Lenders for MBA Abroad Education Loans:

If you don’t have the co-applicant or collateral for an education loan for MBA abroad then also you can use international lenders. They offer loans in the USD and have a pre-approved list of institutions. You can refer to the table below to know the loan amount and interest rate.

Government Schemes Supporting MBA Abroad Loans

The Government of India provides schemes to support students going abroad. This program helps with cultural exchange, makes higher education affordable, and helps in diversification. The available schemes are:

• 
  Vidya Lakshmi Education Loan Portal: This window helps students look for scholarships and loan products provided by different lenders.

• 
  Gujarat Government Education Loan for Studying Abroad: A program that provides education loans at a 4% interest rate and a subsidy on interest rate during the moratorium period. 

• 
  Minority Education Loan Scheme: This program includes many options and offers education loans to students belonging to economically disadvantaged sections at an 8% interest rate.

• 
  Dr Ambedkar Central Sector Scheme: Students visiting abroad for the PG courses and belonging to Backward classes and economically weaker sections can take advantage of this scheme to get a subsidy on the interest rate.

Eligibility Criteria for Education Loan for MBA

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

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

 Documents Required for Student Loan MBA Abroad

The documents that will be required 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 Bachelors)
• 
  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)

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.

• 
  Assess your eligibility for an MBA abroad loan on GyanDhan's platform.
• 
  Connect with a dedicated loan expert who will guide you through the application process and recommend suitable lenders.
• 
  Receive a customized document checklist to simplify the document arrangement process.
• 
  Submit the required documents either in hard copy or soft copy as per the lender's instructions.
• 
  Await verification, typically takes 7 to 15 days. Once approved, sign the agreement letter and track progress on GyanDhan's user dashboard.
• 
  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 fits your profile and offers favorable terms and conditions.

Before starting 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!

Read Also:

• 
  Education Loan Interest Rate

• 
  Which is the Cheapest Education Loan in India?

• 
  Evaluate US Universities' Admission Chances

• 
  Compare Your Target Universities

Frequently Asked Questions