Five tips for securing MBA loan


If you follow the five tips while securing finance for MBA with education loan, you will not only get the best deal, but will save a lot of money while repaying the education loan with interest:


Five tips for securing MBA loan usaomba

Tips No. 1. Calculate your estimated expenditure

Calculate the MBA fund requirement based on 4 factors, namely the 2-year fund requirement; Future job market after 2 years; Amount required to live a non-luxurious life during the course and EMI on repayment based on interest rate and repayment period.


In addition to asking for money for tuition fees, you have to think about lodging and boarding expenses, computers, stationery, books, clothing and other things. All these expenses taken together can be very high. But you will inspire them to make sure.


Tips No. 2. Look for the cheapest MBA education loan

The research team has worked on the economics of how you can save at least 2 lakh rupees on your admission fee if you select a study loan from the right financial institution after a little negotiation.


All banks have their own study loan schemes for MBA studies in India and abroad. These study-loan schemes are divided into two sections - one is regular study loans for students of general vocational colleges and the other is for premium institutions like IITs, IIM, XLRI, MDI, SPJIMR, IMI, IMT, IIFT.


The difference between the two types of schemes is that study loan schemes for premium institutions offer you higher amount with lower interest rate. The corporate / head offices of these banks publish an updated list of such premium B schools.


If your institute falls under the category of premium MBA college, you will get an MBA study loan at a lower interest rate and during repayment of 7 years or more, you will be able to save a large amount even up to 0.25 in the initial years. A% increase in the interest rate can eventually create a cumulative effect coming in millions.


Tips No. 3. Compare MBA funding schemes of different banks

Education loans for MBA are available from almost all banks and other specialized financial institutions in the private and public sector including Avance, Central Bank of India, Credila, Dena Bank, IDBI Bank, HDFC, Punjab National Bank, State Bank of India, Punjab and Sindh Bank


These loan schemes are known by various names to ascertain the need for different terms and conditions, maximum amount, concessional rate of interest, clubbing, margin and security of the co-borrower.


SBI has named its Education Loan Scheme for Premier B-Schools as 'Scholar Loan Scheme' and SBI Student Loan; PNB has named it PNB Pratibha and PNB Saraswati. But our main objective is not to name but to know where we can get the maximum at the lowest interest rate.


Tips No. 4. Opt for shocks repayment period

Consider reducing the repayment period of your education loan. Banks have revised the strategy and taken forward the same. The interest burden will be higher in the long term. For example, if you pay a loan amount in 10 years, for which the interest earned is Rs.6.4 lakh, if the same amount is repaid in 7 years, the total interest is about Rs. 3,5 lakh, as the rate of interest will be lower due to shorter repayment period.


Tips No. 5. Pay interest during the course period

Try to repay the simple interest amount applicable to your study loan amount. When interest compounding starts 1 year after the completion of the course, it will reduce the interest burden.

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