Education Loan for MBA Abroad: Eligibility, Requirements

Collateral for a Student Loan for an International MBA

Simply put, a non-collateral loan is one where you are not required to put up any security in exchange for a loan. If you didn't know, the term "collateral for education loans" refers to any security you present to the bank in exchange for a loan in order to lower the likelihood that it won't be repaid. FDs, bank deposits, bonds, real estate (apart from agricultural land), gold, life insurance plans, shares, etc. are all acceptable forms of collateral for college loans.

You are eligible for a loan up to 4,00,000 INR without putting up any security. Your parents will be made joint borrowers with a third party guarantor for loans up to 7,50,000 INR, therefore there is no requirement for collateral. Higher than 750,000 INR student loans demand collateral. You may be aware that in India, students are eligible for loans up to 1,50,00,000 INR. Collateral loans from public loans have interest rates ranging from 7.6 to 9% to 10.5% for private banks.

Eligibility Criteria for Education Loan to Study Abroad

Qualifying requirements for applying for student loans:

• You must be an Indian citizen.
• At the time of application, you must be at least 18 years old.
• You must have received at least a 60% on your final exam of graduation.
• You must have an admission offer from a foreign university at the time of application.

Documents Required for MBA Education Loan Abroad

To apply for an education loan to pursue MBA abroad, you must provide the following documentation to the banks.

Here is the list of documents required for education loan:

• Completed loan application 
• Academic history through the most recent degree
• Letter of acceptance
• Aadhar card and PAN card
• Voter ID 
• Passport
• Evidence of residency
• Last six months' worth of bank statements
• Return statement for IT

Indian banks for MBA abroad education loans

• HDFC Bank - The most you may borrow is 20,00,000 INR.15 years is the maximum tenure following the moratorium period. The interest rate begins at 9.55% per year.
• Oriental Bank of Commerce - For Category A institutions, the maximum is 25,00,000 INR, while for Category B colleges, the maximum loan is 10,00,000 INR. A maximum of 15 years is allowed. Starting interest rates are 7.30%.

• Punjab National Bank - Based on ability and necessity for payback, the maximum loan amount is decided. A maximum of 15 years is allowed. Interest rates begin at RLR+BSP+2.00% and higher.

• State Bank of India - A maximum loan of 1,50,000 INR is permitted. A maximum of 15 years is allowed. The interest rate is 8.65% per year.

• Bank of Baroda - The maximum loan amount is 80,000,000 INR. A maximum of 15 years is allowed. Interest rates begin at 9.85% per year.
• Axis Bank - There is a 20,00,000 INR highest borrowing amount. A maximum of 15 years is allowed. Interest rates begin at 13.70% per year.

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NBFCs for MBA abroad education loans

• Credila - This is offered by HDFC Bank and was the first platform to offer student loans for higher education. Need-based loans are available for as little as 1,000,000 Indian rupees. Credila will approve your loan application even if you haven't received an admissions offer. The loan has a variable interest rate. Within ten years, it may be paid off. No loan margin exists.
• Avanse - Loans beyond one lakh Indian rupees are provided based on necessity. The full cost of the course may be covered by the loan. Ten years are required for repayment. The base rate and credit profile are used to calculate the interest rate.
• InCred - Unsecured loans up to 40,000 INR and secured loans up to 1,000,000 INR are both offered by InCred. The time frame for repayment is 10–15 years. Interest rates start at 12% and are determined by a number of variables, such as the collateral, credit history, course, and others.

Read More

• Education Loan Interest Rates
• How to Repay Student Loans Faster?

How to Apply for a Student Loan to Study Abroad?

Both offline and online applications for an education loan in India can be made for international studies. Finding the best fit for your needs and financial situation generally begins with extensive study. By providing your contact information, such as your name, phone number, and email address, on the bank's official website, you can register or apply for a student loan to study abroad. The bank representatives will contact you to further discuss this.

You may also apply for an education loan for study abroad through a bank visit in person. After speaking with bank representatives, you can visit the local bank branch and submit the application. You will, however, also need to provide some supporting documentation with your application.

Expenses Paid by Education Loan for International Study

Various banks may have different rules. The costs listed below are, however, typically covered by study abroad loans.

• The cost of entrance, tuition, and assessment
• Books, office supplies, and tools (computers, etc.)
• Airfare to travel overseas to take the course
• Cost of boarding or lodging
• Insurance premium, if the student chooses it
• Other expenses, such as study abroad trips and research expenses

Many aspirants' hopes of studying abroad have come true thanks to student loans. With a simple education loan, it is now feasible to receive a top education at colleges throughout the world. Students now have the opportunity to pay for MBA courses abroad thanks to international student loans.

You can apply for education loans to study abroad with the help of expert guidance from the Shiksha team.