Looking at the documentation and eligibility criteria for MBA student loans

Studying hard for entrance exams, shortlisting colleges, and waiting for the results – these are the things that mark most of the days of a passionate MBA aspirant. However, many MBA applicants often feel tempted to back out at the sight of the lofty fees charged by most B-schools. 

The average MBA course fees in India are about Rs 10 lakhs - an investment not affordable for many. But money should not stop you from studying in your dream university and that is why, it is time to turn towards an education loan for financial help.

Nowadays, MBA student loans are available at almost all banks and financial institutions. Some of the major banks also have tie-ups with some of the top B-schools. However, you might be feeling a bit confused with regards to how you can go about the entire procedure. 

If that is the case, the following article explains what you need to know about the basics of  loan eligibility, loan coverage, and documentation needed for MBA student loans.

MBA loan eligibility criteria -

Here are the general eligibility guidelines laid down by all major banks and financial institutions for taking MBA student loans.

●      Applicant should be an Indian citizen

●      Applicant must have a confirmed admission letter to the MBA college

●      Applicant should fall under the age group of 18-35 years

Do note that these criteria may vary a little between different lenders. Certain lenders may also have more criteria that needs to be fulfilled.

MBA loan expenses covered -

Other than the basic tuition fees, banks and financial institutions also provide coverage for other overhead costs in education while giving a student loan. The expenses covered by MBA student loans generally include:

●       College, examination, laboratory, and library fees

●       Hostel, travel, and food expenses

●       Cost of books, equipment, instruments, and other learning materials

●       Laptop expenses, and essentials required throughout the course period

●       Overhead expenses that include study tours, thesis, projects and so on

●       Deposit money for renting a flat along with monthly rent installments

●       Some additional lump-sum amounts for other university-related expenses. 

It is advisable to discuss the coverage in detail with your lender.

MBA loan documents required -

Now, let’s move on to the documents required to apply for a loan. The paperwork may however differ a bit from bank to bank, but here are the basic documents you need to provide.

●      A filled loan application form

●      Proof of admission

●      Age and identity proof (PAN/ driver’s license/ voter ID/ passport card)

●      Address proof (telephone bill/ water bill/ electricity bill/ gas bill or copy of passport/ Aadhaar card)

●      Marksheet copies of undergraduate course

●      Schedule of expenses that need to be covered while completing the course

●      Bank statement for the last 6 months

●      2 passport-sized photographs

●      Loan statement, if any loan has been taken from other banks/lenders in the past 1 year.

In case you are planning to take a collateral-based loan, you will have to provide additional documents with regards to the collateral to your bank.

Hope this article helps you in understanding the basics of eligibility and documentation for MBA student loans.

Good luck and take care!