Fund Your MBA with an Education Loan

One of the most popular courses in the world, MBA or Masters of Business Administration is something a lot of people aspire to do. MBA is the gateway to management degrees that will help you adjust in the corporate world. An MBA course, however, can be an expensive affair. Most colleges and universities are situated in remote places, and both the domestic and international establishments charge fees that may not be feasible for a student.

 To combat this disparity, a lot of banks have come up with loan offerings specifically designed for MBA courses and classes. You can avail these loans after considering your tuition fees, residential fees if you are living away from your parents and any other cost that you might need to cover. These may include one-time costs like buying new equipment for your college life or recurring costs like food and rentals. Loans are generally divided into the following categories.

 Tenure:

The tenure is the estimated amount of time you have to repay the loan to the bank. A certain amount needs to be paid every month for the tenure period.

 Interest Rates:

Interest rates are further divided into simple and compounded interest. While the former is based on the actual amount of the loan, the compound interest is based on the actual amount and the interest that accumulates every month. The interest can also either be fixed or flexible. While the fixed interest refers to a constant rate of interest for the whole tenure, flexible interest fluctuates according to the market movement.

 Down Payment:

The initial amount you pay before availing your loan is called the down payment. The down payment varies from bank to bank and also depends on the tenure you avail the loan for.

 Loan Charge:

Also known as the processing amount, the loan charge is the amount that is charged by the bank for their services. The amount is minimal compared to the loan itself, and a lot of banks forego this to make the loan processing easier for you.

 Maximum Repayment Time:

The repayment time ranges from 6 months to 1 year after the completion of your course and you can extend it 5 to even 7 years, according to your convenience.

 Pre-Payment Charges:

This amount applies only if you pay the whole loan amount before the tenure ends. A lot of banks charge a certain amount if you end up paying before time, and this is an important criterion that should be considered before you apply for a loan.

 Loan Availability:

A lot of top management institutes in India and abroad start their courses around a specific time every year, so it is important to know if the loan will be approved and available before the college deadlines. The time depends on your loan amount, credit ratings and also the college you apply to.