How to Choose a Business School Loan in India
Education loans are widely available through both public sector (nationalized) and private sector banks.
An MBA at a top Indian business school costs around Rs. 7 - 25 lacs. If you need an education loan to pay for part of your graduate business degree, you’ll still have a much lower loan debt compared to students who studied in Europe or the US.
The most important factors in choosing an education loan are:
- Interest rate
- Flexibility of repayment terms
- Prepayment penalty
- Collateral requirement
Generally, collateral requirements for granting loans to students include the following:
- Loan up to INR 4 lacs: no collateral
- Loan above INR 4 lacs and up to INR 7.5 lacs: third party guarantee
- Loan above INR 7.5 lacs: acceptable collateral security; co-obligation of parents / guardians / third party; estimated future income of the student
For more information, visit the websites of leading banks, such as State Bank of India, Union Bank of India, ICICI Bank, HDFC Bank and several others.