You must have heard like doing MBA from a premier institute commands better pay package than any other course. Well, at some point, it is true. And, especially, if you are an engineer, which is powered with MBA degree then definitely, your entry into big corporates is smooth, and the package shoots up. If you look from the market perspective, the market has always valued a candidate who possesses a good techno and managerial skills. Along with this, usually an engineer gets a degree after a 4 year course while other usual programme gets completed in 3 years. So, if a company has to invest some money on an employee, then mostly they would go with somebody who has technical background.
Today, the number of students, especially with an engineering background who want to pursue MBA or higher studies has increased, but the fees of those premier institutes act as a hindrance. The fees of those institutions are a lot, and it becomes difficult for one to arrange that fund, and that too in a short time. But, now you don’t have to fret, as there are some lenders who offer customized education loan for MBA, and their efficient loan providing services. The whole process to apply for loan is hassle free, and has helped many students to live up to their dreams with ease. Well, this article is designed to give you a brief and aware about all other things that you want to know about Education Loan for Mba. So, if you are a student who is trying to arrange funds to pursue his or her MBA, education loan can be a viable solution for you, as it comes with certain benefits that may not be available with other credit options. Let’s have a look-
Education loan amount- Most of the lenders grant the amount depending on the tuition fee and other cost involved for completing the MBA. Like, typically there are some lenders who can provide you a loan for up to INR 75 lakh in India, and even more for studies abroad. However, one must remember that unlike education loan for MBA, other loan options usually come with higher rate of interest.
Interest Rate: The interest rate for Education Loans is usually, lower than other options as mentioned above. So, you can avail an education loan for MBA for as low as 8.85% p.a. There is some kind of additional concession for female applicants, i.e. up to 0.5% on the interest rate. With this, there are some lenders and financial institutions that offer more than 0.5% concession, if you serve the interest rate during moratorium period. Hence, most of the financial gurus advise to make sure, check and compare between all the available options before applying an education loan for MBA.
Moratorium period: It refers to the duration when you don’t have to pay any EMI, and the period usually lasts for up to one year after the completion of your MBA. This feature is not available with any other loan options, wherein you will be required to start repaying the EMI’s immediately after. Thus, this financial instrument prevents a student from the burden of loan repayment, and gives enough time to find a suitable job before the actual EMI starts.
In addition to this, there are many more benefits associated, like loan tenure, credit score, etc. Hope this information has been helpful. Best of luck!
Related Blog: Important points you need to know about education loan eligibility.
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