MBA is one of the most coveted professional degrees in India today. Studying management increases the number of lucrative opportunities for a person in the professional world and opens doors that were otherwise unavailable.
However, pursuing MBA is a fairly expensive affair when pursued from a recognised institution. Pursuing an MBA from a prestigious Indian institution can cost up to Rs.25 lakh, while an MBA in abroad can cost approximately Rs.50 lakh.
When seeking a guarantee of placement after completion of the course, your educational expense is bound to go up. The only option in such situations is to opt a Personal Loan for higher education, if you do not have enough available funds ready to be used.
It is often confusing how and when to apply for, and avail a loan. Read on to understand what a higher education loan is, know in what circumstances to apply for one, and what the process of application is.
An Overview of Higher Educational Loans
When funds are advanced to students pursuing courses pertaining to higher studies such as an MBA by banks and NBFCs, the sum of money qualifies as a higher education loan. The loan amount is meant to be used to finance expenses incurred while pursuing the course. Such expenses could include tuition, study materials, hostel fees, and cost of living.
NBFCs such as Bajaj Finserv offer personal loans for higher education up to Rs.25 lakh with flexi loan facility which can considerably lower your EMIs. It is reasonably simple to obtain an education loan provided you meticulously follow the prescribed method laid down by the financial institution you are intending to avail the loan from.
With flexibility in eligibility criteria and minimal necessary documentation required, applying for an educational loan is easier than most of us believe it to be.
What to Consider Before Applying for a Higher Education Loan?
It is crucial for you to thoroughly understand the terms and conditions laid down by the financial institution before finally making the decision to apply for the loan. This will ensure that you will avert possible wrong financial decisions.
Calculating the exact cost of pursuing higher education from the chosen institution is also important to understand how much you need to pay back to your lender. Here is a checklist of things you need to consider before applying for your loan:
- Draw a precise amount of money required for the pursuit of your studies. This will include the total amount of tuition fee, hostel fee, cost of food, expenses towards study materials, and miscellaneous expenses.
- Calculate the total amount of loan you will be paying back to the financial institution. Consider the interest rates applicable to the sum lent to you and the tenor during which you will be paying back your due amount.
- Assemble the necessary documents and set them to be able to present them when required by your financial institution.
What Documents Will be Required by the Financial Institution?
Once you have made the decision to apply for the higher education loan, certain crucial documents will be required from you for the application process to be completed. Here is a general list of the documents you will present before your lender:
- Pass certificates and marksheets proving your past education, including the highest degree obtained by you
- Proof of having been accepted and admitted by the educational institution you will be pursuing your MBA from
- A list of expenses that will be incurred by you while pursuing your MBA
- Your latest photographs, generally passport size and in color
- Bank account statements if required
- Income tax statement of the guarantor or co-borrower
- A statement of the co-borrower’s assets and liabilities
- Proof of income of the co-borrower
- Identity and address proofs such as passport, PAN card, voter’s ID and driving license of the borrower and co-borrower
The above information will give you a fair idea about the needful to be met by you while availing a higher education loan. It is a process with rare complications and ensures that you can pursue your dream with the right financial assistance and pay back at your comfort and pace.
Pursuing higher education or an MBA is the right of every individual willing to learn more as they advance in life and financial constraint shouldn’t restrict a person from achieving his or her dreams. In cases of financial difficulties, a higher education loan is the answer to all your worries.