The various benefits of opting for an education loan for MBA

Author: Shanaya Irani

Education credentials are something that every individual need to possess in order to climb up the career mountain of MNCs (multi-national corporations). The reason being; the corporations nowadays are looking for employees who are not only great at their job but also possess educational accolades to back them up. Thus, a number of students as well as working-class employees wish to obtain an Education loan for MBA from a premium institution. Further, the fact that the interest rates charged by the financial institutions are way lower than the ones given out by traditional financiers makes them a favorite choice for the borrowers. Other than that, there are a number of added benefits of making use of an education loan for MBA, and a few of them are here as follows:

  • Self-finance your education: You get to make your own way towards obtaining education from a premium institution, without having to depend upon anyone else. Because parents often exhaust their life-worth savings in order to sponsor the educational studies of their young ones.
  • The best thing about opting for an education loan for MBA is the fact that you get to make flexible repayments in the form of EMIs (equated monthly installments). Thus, you can not only plan out your current but even your future repayments in advance. This helps you to
repay your loan amount in time and ensure that you don’t default.

  • The financial institutions also provide you with an EMI calculator on their online websites. These calculators are available for free and have an extremely user-friendly interface. Therefore, people can easily calculate their installments and compare them with other financial institutions- to find the best education loan for MBA in the market.
  • Further, an education loan takes care of all the expenses that you incur while pursuing your MBA (master’s in business administration) studies. The different expenses incurred by the students while pursuing their studies are the costs of tuition fees, living expenses, college expenses, travel expenses, etc. Therefore, students can pursue their studies without having to worry about the price-tag that comes along with it.

However, the financial institutions have set eligibility criteria that you need to fulfill in order to make use of the loan amount from an Education loan. The different eligibility criteria set by the banks and NBFCs (non-banking financial companies) are here as follows:

  • You need to be an Indian citizen in the age group of 18 years to 35 years to obtain an educational loan for MBA. However, this age may vary from one financial institution to another.
  • The financial institutions also require you to provide with an earning member of the Indian society as the co-borrower for the loan amount. This co-borrower can be any of your family members such as parents, siblings, relatives, etc.
  • The financial institutions also scrutinize your educational background, letter of confirmation from the university, the course of choice, the country in which you wish to pursue higher studies, etc.
  • Further, the banks and NBFCs (non-banking financial companies) will also check the co-borrowers credit score, history and income to determine your loan worthiness.