How to reduce your MBA study expenses

When you are thinking about financing your MBA, it is useful to understand how you can reduce your study expenses. Here are some tips.

1. Save on international tour

Many B-schools have embarked on overseas study trips to various foreign institutions or are engaged in international exchange programs. Foreign tour or international exchange program is charged in lakhs. If you are able to convince the B-School that you do not want to go for it, then it is very likely that you are free from it. Also, international tour value may not be as much as claimed by the B-school.

 

2. Get a scholarship and "charge" your fee

There are B-schools that can offer you discount, scholarships, fee concessions and rebates. Crosscheck how much you can get it. This will further reduce your financial burden while pursuing MBA.

 

3. Work on economics

Assuming that the fee structure of the MBA program requires an amount of Rs 10 lakh to complete the 2-year program, let us discuss what amount would be possible in different future income scenarios.

 

How to reduce your MBA study expenses usaomba

Loan repayment plan

Here's how you can plan to repay the EMI of your loan from your salary.

Example-1: Expected annual gross salary: Rs. 2.20 lakh.

 Net (in hand) Salary: Rs.5.76 Lakh

(After allowing 20% ​​for various components like medical insurance, HRA, PF)

 

Maximum Recommended Education Loan Amount: Rs 10 Lakh @ 11% pa

Maximum Recommended EMI: 30% of Net in Pay Per Month -Net Pay: Rs. 48,000 / -.

For 10 years Rs. 10 lakh EMI: Rs. 13700 / -

• Total payment over 10 years: Rs. 16,44,000 / -

• Total interest paid on the loan: Rs. 4,7,000 / -

 

Example-2- Expected annual gross salary: 4.8 lakhs.

 Net (in hand) Salary: Rs.3.84 Lakh

(After allowing 20% ​​for various components like medical insurance, HRA, PF)

 

Maximum Recommended Education Loan Amount: Rs 7 Lakhs @ 11% pa

Maximum recommended EMI: 30% net in hand pay

• Salary per month: Rs. 32,000 / -.

• EMI of Rs.7 lakhs for 10 years: Rs. 9600 / -

• Total repayment in 10 years: Rs. 11,52,000 / -

• Ratio of repayment to net salary: 30%

• Total interest paid on the loan: Rs. 4, 52,000 / -

 

Example 3- Expected annual gross salary: Rs. 3.6 lakh.

Net (in hand) Salary: Rs.3 Lakh

(After allowing 20% ​​for various components like medical insurance, HRA, PF)

 Maximum Recommended Education Loan Amount: Rs.5 Lakh @ 11% pa

Maximum recommended EMI: 30% net in hand pay

• Salary per month: Rs. 25,000 / -.

• EMI of 5 lakhs for 10 years: Rs. 6900 / -

• Total payment over 10 years: Rs. 828,000 / - Rs.

• Net salary to repayment ratio: 28%

• Total interest paid on the loan: Rs. 3,28,000


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