Pursuing an MBA abroad, especially in European countries is a dream for many students. With world-class education, international exposure, and lucrative career prospects, an MBA from a prestigious global institution can be a game-changer. However, the cost of education like the tuition fees and living expenses, often poses a significant challenge. It is important to understand how to get education loan for MBA so that you can plan to pursue the course properly. This is where an education loan to study abroad can help turn your aspirations into reality. Let’s understand all about securing an education loan for an MBA as an international student planning to study abroad.
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How to Get Education Loan for MBA?
MBA education loans are provided by almost all major public and private sector banks in India at affordable interest rates. You can get an education loan for MBA by applying online through the Vidya Lakshmi portal education loan or by visiting the nearest branch of the bank. As per the IBA model education loan, you can get up to INR 1.5 crore loans to study MBA abroad. You need to fulfil the eligibility criteria and submit the required documents. It is essential to know what are the requirements for an education loan so that you can be ready whenever the bank or the lender asks for any details.
Also Read: Planning to pursue MBBS abroad? Check here How Much Education Loan Can You Get for MBBS Abroad
Steps to Get Education Loan for MBA
Before applying for an education loan, it is important to understand all the steps involved in the process. You need to check MBA education loan interest rates, repayment period, collateral requirements, loan disbursement process etc. Check the details of the steps involved in getting an education loan for MBA below:
Research Lenders
Researching lenders is an important step in securing an education loan for your MBA abroad. You need to compare public and private banks, non-banking financial companies (NBFCs), and international loan providers. The comparison shall be based on factors like interest rates, repayment terms, moratorium periods, and additional benefits. Look for lenders offering competitive rates and favourable terms for your chosen country or university.
Gather Documents
Gathering documents is a vital step in the education loan process. The bank verify all the details based on the documents provided by you. Some of the commonly required documents include identity proof, academic records, the university’s admission letter, course fee structure etc. Always check with your lender for any specific document requirements to avoid last-minute hassles. Check the details of the documents below:
- Identity Proof (Aadhaar, PAN)
- Academic Records (Transcripts, Certificates)
- Admission Letter from the university
- Fee Structure and Course Details
- Income Proof of Guarantor
- Collateral Documents (if applicable)
Also Read: Check here all about YES Bank Forex Card for international students and manage expenses efficiently
Apply for Education Loan
Applying for an education loan involves submitting your application online or offline, depending on the lender. Fill out the application form accurately and submit the required documents. Many lenders offer a simple online process with tracking features, while others may require a visit to the branch. Check the steps to apply for education loan for MBA below:
- Visit the official website of the bank
- Go to the loan section and apply for an education loan
- Fill out the loan application form and submit the required documents
- Submit the loan application form and wait for approval
Loan Approval Process
The loan approval process involves a thorough evaluation of your application by the lender. They assess factors such as your academic profile, the reputation of the university, the guarantor’s financial stability, and collateral value (for secured loans). For unsecured loans, your test scores and earning potential after graduation hold significant weight. The lender may also conduct a background check and document verification. Once approved, you’ll receive education loan sanction letter detailing the loan terms and disbursement schedule. This process typically takes 7–15 working days.
Loan Disbursement
Loan disbursement is the final step in the education loan process, where the approved funds are released by the lender. The disbursement is made directly to the university as per the fee structure, covering tuition fees and other expenses outlined in the sanction letter. For living and miscellaneous expenses, some lenders transfer the amount to your personal account in instalments.
Eligibility Criteria for an MBA Education Loan
To qualify for an MBA education loan, you must meet certain eligibility criteria set by lenders. Some of the essential eligibility requirements include a confirmed admission, outstanding academic background, high credit scores etc. Most lenders also require a co-signer or guarantor with a stable income. Check some of the essential eligibility criteria for MBA education loan below:
- Admission Confirmation: A confirmed offer letter from a recognised international MBA program.
- Academic Record: A strong academic background and entrance exam scores (GMAT/GRE).
- Co-Signer/Guarantor: Parents or guardians with stable income, especially for unsecured loans.
- Loan Amount & Collateral: Secured loans require adequate collateral matching the loan amount.
Major Banks for MBA Education Loan
Several banks in India offer specialized education loans for MBA programs abroad, each with unique features tailored to students’ needs. Public sector banks like SBI and PNB provide low-interest secured loans, while private banks such as ICICI Bank and HDFC Credila focus on flexibility and faster processing. These banks also offer moratorium periods, tax benefits, and customized repayment options to support students in managing finances during and after their studies.
| Bank Name | Key Features |
| State Bank of India (SBI) | Low-interest rates, secured loans, moratorium period, up to INR 1.5 crore under SBI Global Ed-Vantage. |
| Punjab National Bank (PNB) | PNB Udaan scheme, collateral-based loans, and interest subsidy for eligible students. |
| HDFC Credila | Customised unsecured loans, flexible repayment, faster approval, suitable for premium MBA programs. |
| ICICI Bank | Quick loan processing, unsecured loans up to INR 1 crore lakhs, no collateral required for reputed universities. |
| Bank of Baroda | Baroda Scholar scheme, competitive interest rates, extended repayment period. |
| Axis Bank | Loans up to INR 1 crore, moratorium period, doorstep service for loan application. |
Securing an education loan for an MBA abroad is a systematic process that requires careful planning and research. With the right preparation and lender, you can access the necessary funds and focus on achieving your dreams. Check some common FAQs based on the same below:
FAQs
Most lenders offer up to INR 1.5 crore for MBA programs abroad. However, the amount may vary based on your university, program, and repayment capacity.
Collateral is required for secured loans, typically provided by public sector banks. Private lenders also offer unsecured loans but at higher interest rates.
Interest rates range from 8.5% to 15%, depending on the lender, loan type (secured/unsecured), and applicant profile.
A moratorium period is a repayment-free duration during your course and for 6–12 months after completion, allowing you to focus on your studies.
While not mandatory for all lenders, strong GMAT/GRE scores improve your profile and may help secure better loan terms.
Yes, most education loans include living expenses, travel, health insurance, and study material costs in addition to tuition fees.
Repayment typically starts after the moratorium period, with flexible EMI plans over 5–15 years, depending on the lender.
Yes, under Section 80E of the Income Tax Act, you can claim a deduction on the interest paid for up to 8 years.
The loan approval process usually takes 7–15 working days, depending on the lender and the completeness of your application.
You can begin the loan application process, but disbursement requires a confirmed admission letter from the university.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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