Many students dream of pursuing an MBA abroad, but the financial burden can be daunting. An education loan for MBA abroad can significantly ease this burden by covering tuition fees, living expenses, travel, and other costs. Many banks offer loans up to INR 1.5 crores and cover these expenses. You can also apply for collateral-free loans up to INR 1 crore with ICICI Bank. Let’s explore the details related to education loans for MBA abroad, the maximum loan amount, and the best lenders to help you finance your education.
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Education Loan for MBA Abroad
Leading banks like SBI, Axis Bank, ICICI Bank, and NBFCs like HDFC Credila, Auxilo, etc. provide MBA education loans abroad. They offer personalized terms and conditions and help you cover a wide range of expenses. These include tuition fees, living expenses, study expenses, insurance, and a lot more.
Loan amounts can vary based on factors such as the country, university, program cost, and financial profile.
- Most banks offer secured education loans for MBA abroad up to INR 1.5 crores. However, you can apply for MBA loans up to INR 3 crores with ICICI Bank if you have an excellent credit history.
- Many public banks offer education loans for MBA without collateral up to INR 7.5 lakhs. However, with ICICI Bank, you can apply for higher loan amounts up to INR 1 crore. Axis Bank and HDFC Bank offer unsecured loans for MBA ranging between INR 45 lakhs to 75 lakhs.
- Many MBA scholarships in Ireland and other countries for Indian students also help students fund their MBA abroad.
To apply for these loans, you must choose the lender offering you the best interest rates, repayment terms, and flexible eligibility criteria.
Also Read: Learn about how much education loan you can get without collateral. Explore financing options for higher education without pledging assets like property.
How Much Loan Can You Get for an MBA Abroad?
With collateral, you can avail of higher loan amounts, sometimes covering 100% of the total expenses. Public sector banks like SBI and Union Bank offer up to INR 1.5 crores for studying abroad against property or fixed deposits.
Banks and financial institutions in India typically offer collateral-free education loans of up to INR 7.5 lakhs for domestic studies and up to INR 50 lakhs (or more) for studying abroad. Private lenders or international organizations may offer higher amounts without collateral, going up to INR 1 crore.
| Lender | Maximum Loan Amount | Interest Rate (Approx.) | Other Key Details |
| ICICI Bank | Up to INR 3 crores | REPO + 3.75% | Quick loan processing and hassle-free loan disbursement directly to the university. |
| HDFC Bank | Need-based financing | Starting at 12.55% | Moratorium period included in tenure. |
| Oriental Bank of Commerce | No upper limit for Category A institutions | Starting at 7.30% | Categorized based on the institution’s rank. |
| Punjab National Bank | Based on need & repayment ability | Starting at RLR+BSP+2.00% | Loan terms depend on the borrower’s profile and institution. |
| State Bank of India | INR 1.5 crores | Starting at 8.65% | Comprehensive coverage for reputed institutions abroad. |
| Bank of Baroda | INR 1.5 crores | Starting at 9.70% | Ideal for high-cost MBA programs abroad. |
| Axis Bank | Need-based financing | Starting at 13.70% | High interest compared to competitors, but offers flexible repayment options. |
| HDFC Credila | Need-based, starting at INR 10 lakhs | Variable | No loan margin. Loans are approved even before admission. |
| Avanse | Need-based, starting at INR 1 lakh | Based on base rate & credit profile | Covers full course costs. |
| InCred | INR 40 lakhs (unsecured) / INR 1 crore (secured) | Starting at 12% | Interest depends on collateral, credit history, and course. |
Factors That Affect Your Loan Amount
Various factors will affect the exact loan amount you can get for an education loan for an MBA abroad. These include the university you have secured admission to, the country you plan to study in, the co-applicant’s financial status, and the type of collateral you pledge. Check them out below-
University and Program:
- Reputed institutions and accredited MBA programs increase your chances of securing higher loan amounts.
- Top-ranked B-schools like Harvard, INSEAD, and LBS may enable you to secure full funding due to their global recognition.
Country of Study: The cost of living and tuition fees vary significantly across countries. For example, the amount of an education loan for an MBA in the USA would be more than the cost of studying MBA in Canada.
Co-Applicant’s Financial Status: The income and creditworthiness of your co-applicant play a critical role in determining loan approval and amount.
Collateral Availability: Providing collateral increases the loan amount you can avail of and often leads to better interest rates.
Also Read: Check all the details on how to get an education loan for abroad studies without collateral. know the process and mode of application.
Application Process for Education Loan for MBA Abroad
Applying for MBA loans is super easy. You must ensure that you fulfil the eligibility criteria and gather the necessary documents. Here are some steps you must follow for a hassle-free loan application process with any lender.
- Compare lenders based on loan amount, interest rates, repayment terms, and eligibility to find the best option.
- Ensure you meet the eligibility criteria, including academic performance, admission confirmation, and co-applicants financial profile.
- Gather essential documents like admission letters, fee structure, KYC details, and co-applicant’s income proof.
- Submit your loan application online via the lender’s portal or visit their branch in person.
- The lender evaluates your profile and may request additional documents; approval usually takes 1-3 weeks.
- Once approved, the loan amount is disbursed in instalments directly to the university or your account.
To sum up, education loans for MBA abroad can range from INR 1 lakh to INR 1.5 crores depending on the lender, with repayment tenures extending up to 15 years. Interest rates vary, starting at around 9.50% for public banks and going higher for NBFCs. You are encouraged to compare options and select the lender that best aligns with your financial needs and repayment capacity.
To learn more about education loans, the best bank accounts for students, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
FAQs on Education Loans for MBA Abroad
You can get up to INR 1 crore for secured loans and INR 40-50 lakhs for unsecured loans, depending on the lender and your eligibility.
Many lenders provide unsecured loans up to INR 40-50 lakhs based on your credit profile, university ranking, and co-applicant’s financial stability.
Interest rates range from 9% to 15% per annum, varying by lender, loan type (secured or unsecured), and creditworthiness.
You can pledge high-value collateral, improve your credit score, or secure admission to top-tier universities to qualify for a higher loan amount.
Yes, many banks and NBFCs offer unsecured loans without collateral, but the loan amount and interest rate depend on your profile and university ranking.
Common documents include admission letters, fee structure, academic transcripts, co-applicant’s income proof, and KYC documents like PAN, Aadhaar, or passports.
Loan processing typically takes 1-3 weeks, depending on the lender and how quickly you provide the required documents.
Most lenders offer a moratorium period, usually the course duration plus 6-12 months after completion, allowing you to begin repayment later.
Secured loans offer lower interest rates and higher amounts, while unsecured loans provide flexibility without collateral but come with higher rates.
Yes, education loans cover tuition fees and additional expenses like accommodation, travel, and living costs as per the university’s fee structure.
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