Education Loan for MBA in USA for Indian Students

In the academic session 2022/23, around 268,923 Indian students travelled to the USA for higher studies. The QS Global MBA Rankings 2023 further noted over 100 universities/colleges from the country feature in the list, out of which an impressive 39 universities are ranked amongst the top 100. There is an advantage of international credibility when getting an MBA in the USA but one must keep in mind the heavy price tag attached to it. To satisfy their monetary requirements, a number of overseas students seek education loans. So, to study MBA in USA for Indian students, it is very important to consider various factors and scenarios.

Cost Of Studying MBA in USA

MBA programs in the USA can come at a significant cost but being globally recognized can provide good returns with career opportunities in the future. International students can expect to pay tuition fees ranging from approximately USD 60,000 to USD 80,000. The living expenses to study MBA in the USA account for USD 8,000 to USD 10,000 per month. 

A general bifurcation for the same has been shown below: 

List of Top Colleges for MBA in USA with Average Tuition Fees Per Annum

Types of Education Loans for MBA in USA

In the case of Indian students pursuing an MBA in the USA, the education loan options can be divided into two broad categories. The first one is a secured education loan, which requires the borrower to furnish some form of security for the loan during the application process. Such security may include, but is not limited to, fixed deposits, LIC policies, non-farm land, residential or commercial housing etc. It should also be pointed out that almost all the government owned banks in India take the security before disbursing the education loan for overseas studies.

Know more about Different types of collateral security

The second category is unsecured education loans, which do not require collateral as security. Unsecured education loans come with higher interest rates compared to secured loans due to the increased risk for the lender. These loans often 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 in USA

As mentioned earlier, secured loans require collateral, enabling higher loan amounts compared to unsecured loans.

Additionally, secured loans may not require a co-applicant. When considering education loan options for studying an MBA in the USA, two recommended public sector banks are-

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  State Bank of India (SBI)
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  Union Bank of India (UBI)

Here is a comparative analysis of these banks' education loan offerings for studying in the USA.

Unsecured Education Loan For MBA in USA

In the event that you lack collateral for an education loan to pursue the MBA in the USA, other options are available through Private banks, Non-Banking Financial Companies or International lenders. Private banks and NBFCs may expect a co-applicant who earns a certain gross amount and has no obligations, while the international lenders offer loans without requiring a co-borrower. Another plus of going for the international lender is that they issue the loan in USD currency therefore lowering foreign exchange and other transaction charges. Nevertheless, remember that international lenders usually charge a costlier interest rate than the local ones. All the lenders providing unsecured educational loans for the purpose of pursuing MBA in USA have their benefits and shortcomings. Let us take a look at table of comparison below-

Education Loan for Experienced Professionals - ICICI Bank offers a loan option for applicants with a minimum of 2 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.

Choose Best Lender for MBA in USA Student Loans

When evaluating education loan options for an MBA in the USA, GyanDhan offers helpful advice to select the most suitable loan and minimize future financial burdens. To make an informed decision, it's crucial to compare the following aspects across lenders and loan schemes:

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

Expenses covered by education loan for MBA in USA

The expenses that may be covered under loan as per the lender will include -

Cost to Study:

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  Tuition fee
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  Admission fee
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  Examination fee
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  Expenses for books, or laptop
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  Expenses for study tours

Living Expenses:

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  Accommodation or hostel cost
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  Food costs
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  Caution fee

Other Costs:

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  Expenses for travel
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  Health insurance expenses
• 
  Miscellaneous expenses

Documents Required For MBA Loans For USA

It is essential for students to collect all the required documents for applying for an education loan to study MBA in the USA. While the document checklist can be extensive, GyanDhan offers a personalized document checklist to streamline the submission process for you.

Eligibility For MBA in USA For Indian Students

International students seeking an education loan in the USA must meet certain eligibility criteria. These include:

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  Obtaining confirmation of acceptance from a recognized American institution for a full-time master’s program.
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  Being at least 18 years old.
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  Demonstrating a strong academic track record.
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  Choosing a course of study with promising career prospects.
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  Providing collateral, if applying for a secured loan.

How to get an education loan to study MBA in USA?

Securing an education loan for pursuing an MBA in the USA is typically a straightforward process. However, managing multiple lenders individually can be overwhelming. To simplify this procedure, GyanDhan offers streamlined assistance in obtaining an education loan for an MBA in the USA. They guide you through the following steps:

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  Check your eligibility for an education loan for an MBA in the USA on GyanDhan's platform.
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  Connect with a dedicated loan expert who will assist you throughout the application process and suggest suitable lenders.
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  Receive a personalized document checklist to simplify the organization of required documents.
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  Submit the necessary documents either in hard copy or soft copy, following the lender's guidelines.
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  Await verification, which typically takes 7 to 15 days. Once approved, sign the agreement letter and monitor progress through GyanDhan's user dashboard.
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  Initiate the loan disbursement according to the lender's procedures, with funds being directly deposited into your account or disbursed to the university by international lenders.

How to repay MBA in USA Education Loan

When obtaining an education loan to pursue an MBA in the USA, it is crucial to consider the repayment terms. The repayment tenure and moratorium options are essential factors when selecting a lender.

There are various repayment options available, including:

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  Partial Simple Interest (PSI)
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  Simple Interest (SI)
• 
  Equated Monthly Installments (EMI)

To help you make an informed decision, we have created a comparative guide that focuses on repayment as a key aspect of obtaining a loan for studying MBA in the USA.

When applying for an education loan to pursue an MBA in the USA, it is important to carefully evaluate and compare the offerings of different lenders. However, GyanDhan provides a convenient solution to simplify the process. By reaching out to us directly, you can benefit from our streamlined education loan assistance. Our education loan expert will assess your academic and financial background and guide you through the available loan options. With our extensive network of partnerships with government banks, private banks, and NBFCs, we can help you find the most suitable loan for your needs. Best of all, our assistance is provided free of charge. So what are you waiting for? Check your loan eligibility now!