Master of Business Administration (MBA) continues to be one of the most sought after career choices of students. It is common knowledge that getting an MBA from the top institutes in India or reputed B-schools abroad ensures a progressive career. However, like most other educational streams, MBA courses have become increasingly expensive.
The starting range for an MBA course in any of the institutions in India is Rs 3-4 lakhs and it can go up to Rs 30 lakhs or even more, if food, accommodation and other expenses are to be counted. With fees of MBA courses skyrocketing, students are queuing for educational loans from banks.
Gone are the days when students had to run from pillar to post to borrow money to study. Now a variety of instruments are available for pursuing higher studies.
Banks and other organisations are also coming to rescue students given the sheer size of the amount required for the courses. Some banks also have tie-ups with some of the premier institutes, where a special rate of interest, which is lower than market rate, is offered to the students.
Almost all the nationalised banks offer educational loans to students for studies in India and abroad. Besides, some private trusts are running study loan scheme, the terms and conditions of which vary from organisation to organisation.
Most private banks offer flexible options related to student loans and education loans. Certain private banks give various benefits to the borrowers, by opening a savings account for them or providing them with debit cards. Some banks also provide customised education loans, created for specific requirements.
The tenure refers to the period for which the loan is sought. The tenure of the loan impacts various aspects of the loan, including the interest rate and size of the premiums. Longer repayment tenures usually mean more interest payments though the premiums are easier, i.e. smaller in terms of monthly instalments.
Many banks offer education loans which allow students to repay their loan either after completing their course or after finding a job, which is subject to few conditions. This benefit of educational loan is that it allows students to remain worry free for financial backing.
There are various sources from where a student can get information about the loans. Various educational organisations provide information about the educational loans during the B-school events or B-school fairs. MBA aspirants can also take help from different B-schools Guides for different kind of loans offered by the banks.
To promote their schemes of educational loans many nationalised and private banks have even started putting their posters in the college campuses. This trend is catching on and one will see lot of students going in for educational loan once the awareness level increases.