How to open the door of education finance for MBA studies?

Pursuing higher studies in Master of Business Administration is an expensive affair beyond any point of dispute but added to it is another fact that once you secure your admission in any of the top rated schools or universities in India or abroad there are various banks and private finance firms that offer education loan for MBA (if you’re an Indian citizen) that will not only cater your study needs but also look after other expenses such as library charges, hostel and mess charges, cost of books and equipment, maintenance, caution fund/building fund/refundable deposit and cost of passage (for studies abroad) etc. The only thing that you need to have is the smartness to judge enough your requirements and then approach a suitable bank or private firm offering the best deals at optimum costs.

These lenders give a loan for individuals in the 16-35 years age group. Lenders usually prefer to give loans for courses for a college degree, university courses and professional courses such as MBA, engineering, doctorate and law. Education loan for MBA depends upon where is wish to pursue the course whether in India or abroad. Today, some of the leading private finance firms understand the value of education more than your concern and therefore offer student loan with no cap set on loan amount. While government banks demand for margin money of around 15-20% of the loan amount to approve study loan few of the leading finance firms in India give study loan at no margin money costs. The interest rates offered are as low as 12.75% and the processing fee is mere 1-2% of the education loan amount being calculated on a case-to-case basis. They design study loans with an aim to provide 100% coverage of education costs, making such young talents of India free from unnecessary burdens.

For education loan for MBA upto 7.5 lakh you may not need to give collateral security, but for loans above that, you will have to offer a collateral security in the form of residential property, Fixed Deposit, Life insurance with surrender value equivalent to required security coverage and non agricultural land.  Other usual requirements for co-applicants are financial documents such as bank statements, salary or income certificates, income-tax returns and so forth.

To repay loan amount these firms offer flexible repayment options such EMI payment course, Interest servicing during course & partial interest servicing during course, EMI repayment post Holiday / Moratorium period and Step Up repayment facility.  You can start the payment of your Education loan for MBA after the moratorium period during which you don’t need to repay the loan. This period takes into account the duration of your course and extends up to a year after the course completion. When you get a job immediately after this period, the moratorium ends within six months of being employed. Once the moratorium period is over, you get 6-7 years to repay the loan.

Choose your education course carefully and don’t judge your career based on loan amount. Once you plan well about your MBA studies, subject specialization, place of your choice (India or abroad), future job prospects, projected incomes you can opt for suitable student loan to build your career path efficiently in life.

Source :(http://www.articles.kraftloft.com/Free-Articles-Directory/how-open-door-education-finance-mba-studies)