Fund your management studies with education loan
MBA is one of the most popular and in demand courses today. MBA offers specializations in various fields like finance, marketing, banking, logistics, information technology and more. Numerous job opportunities, promising career, high pay packages and new scope for becoming a self-made entrepreneur lure many students to pursue professional degrees like MBA. However even after being capable and clearing the entrance exams not many are able to pursue their dream career. This is due to the high fee structure and costs involved in pursuing an MBA. Apart from these there are also living and other study expenses like tuition fees, books, and computers etc. which are add on to the cost. But, if you have the zeal to fly high and cross oceans, then nothing is impossible. You can remove this financial barrier with the funds provided through the education loan for MBA. There are many banks and private finance companies, which can give you a financial back up with education loan especially which is designed for the aspirants who want to pursue an MBA.
Here is what you need to know before going for with the education loan for MBA.
Eligibility criteria or students:
Any student who is an Indian citizen and 18 years old or above can avail an education loan for MBA from the various private finance companies providing study loans. However, before availing he or she must have a confirmed admission in the institute from where the students want to pursue the course.
Which institutes are eligible?
Students may get the loan only, if the institution in which they applied for meet the requirements of the lenders. Many of the private finance companies grant loan for degree courses, diploma courses and also professional courses like engineering, medical and management courses like MBA.
However, the lenders majorly extend loans for reputed institutes and courses, this is because they check for the scope and employability prospects that the institute and course offers so that neither the student gets rest assured about his successful career and is in a position to repay the loan with comfort.
The loan amount depends upon whether your pursuing it from India or abroad. However there are some private finance companies which provide 100 percent coverage with no margin money and no cap on the loan amount.
Documents required:
The common document checklist includes the following:
· Student KYC
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· Student Educational Documents
· Course & Fee Details
· Co-Borrower KYC
· Co-Borrower Income Documents
· Collateral Documents
Collaterals security:
For availing an education loan for MBA, the lender needs the applicants to provide a collateral security against the loan which could be a Residential property, Fixed Deposit, Life insurance or a Nonagricultural land
Interest rates and processing fees: the interest varies across different banks and private finance companies. However there are some private finance firms which charge a interest rate of 12.57 % and a nominal processing fee of 1%. However some lenders provide loans at fixed rate of interest while some at a floating rate of interest. You can select the best option available to you depending on your needs and risk appetite.
Moratorium period:
In simple words moratorium period refers to the grace period during a student does not have to pay. You get a grace period of 6 Months after the course is complete or 3 months after getting the Job, allowing you to have complete focus on your course completion without any stress and worry!
So, before selecting a loan option, it is advisable to consider the above mentioned factors, as availing an education loan is big decision and needs careful selection which will help you remove a financial hindrance coming in your way.
Source: http://youknowitbaby.com/article/27117/fund_your_management_studies_with_education_loan.html
