Best Education Loans for MBA Abroad [June 2024]

Embarking on an MBA journey abroad is an exciting yet financially demanding task. To ease the burden, several banks and financial institutions offer education loans specifically tailored for students pursuing their MBA degrees internationally in the United States, Europe or Australia. 

Introduction to MBA Education Loans

Pursuing an MBA abroad is a significant investment in your future. With the rising costs of tuition and living expenses, securing a reliable education loan becomes essential. This guide explores the top education loans available for students planning to pursue their MBA abroad, focusing on key aspects such as loan amounts, interest rates, repayment terms, and unique features. 

We did the heavy lifting so you don't have to! Here is the full list with the details to compare them.

1. SBI Global Ed-Vantage Scheme

Overview

The SBI Global Ed-Vantage Scheme is a popular choice for students planning to pursue their MBA abroad. This loan offers a high loan amount and attractive interest rates, making it an excellent option for covering tuition fees and other expenses.

Key Features

• Loan Amount: Up to INR 1.5 crore
• Interest Rate: 9.50% per annum
• Repayment Tenure: Up to 15 years

Eligibility Criteria

• Indian citizens with secured admission in a recognized foreign institution.
• Good academic record and collateral security.

Repayment Terms

• Moratorium period: Course duration plus 6 months.
• EMI starts after the moratorium period.

Application Process

• Online Application: Visit the SBI website and fill out the application form.
• Document Submission: Submit required documents such as admission letter, identity proof, and collateral documents.
• Approval and Disbursement: Upon approval, the loan amount is disbursed directly to the institution.

For more Info: Click Here

2. HDFC Credila Education Loan

Overview

HDFC Credila is known for its tailored education loan solutions, specifically designed for students pursuing higher education abroad. The loan offers flexibility in repayment and competitive interest rates.

Key Features

• Loan Amount: Up to INR 50 lakhs without collateral, higher amounts with collateral
• Interest Rate: Starting from 11.25% per annum
• Repayment Tenure: Up to 10 years

Eligibility Criteria

• Indian citizens with admission to recognized institutions abroad.
• Co-borrower required for loan approval.

Repayment Terms

• Flexible repayment options with a moratorium period.
• EMI starts after the course completion plus 6 months.

Application Process

• Online Application: Visit the HDFC Credila website and complete the online application form.
• Document Submission: Submit required documents including admission letter, co-borrower details, and financial proofs.
• Approval and Disbursement: Loan approval and disbursement upon verification.

For more Info: Click Here

3. Axis Bank Education Loan

Overview

Axis Bank offers education loans for students planning to study abroad, with a focus on providing substantial loan amounts and competitive interest rates.

Key Features

• Loan Amount: Up to INR 75 lakhs
• Interest Rate: Starting from 10.50% per annum
• Repayment Tenure: Up to 15 years

Eligibility Criteria

• Indian citizens with secured admission in recognized foreign institutions.
• Collateral required for higher loan amounts.

Repayment Terms

• Moratorium period includes course duration plus 6 months.
• Flexible EMI options post moratorium.

Application Process

• Online Application: Fill out the application form on the Axis Bank website.
• Document Submission: Submit necessary documents such as admission letter, collateral details, and KYC documents.
• Approval and Disbursement: Loan disbursement upon approval.

For more Info: Click Here

4. ICICI Bank Education Loan

Overview

ICICI Bank provides comprehensive education loan solutions for students pursuing their MBA abroad, with flexible terms and attractive interest rates.

Key Features

• Loan Amount: Up to INR 50 lakhs without collateral, higher amounts with collateral
• Interest Rate: Starting from 11.00% per annum
• Repayment Tenure: Up to 10 years

Eligibility Criteria

• Indian citizens with confirmed admission to foreign institutions.
• Good academic record and collateral security for higher loan amounts.

Repayment Terms

• Moratorium period: Course duration plus 6 months.
• EMI options available post moratorium.

Application Process

• Online Application: Complete the application process on the ICICI Bank website.
• Document Submission: Provide required documents including admission proof, collateral documents, and identity proof.
• Approval and Disbursement: Approval followed by direct disbursement to the institution.

For more Info: Click Here

5. Avanse Education Loan

Overview

Avanse Financial Services offers specialized education loans for students pursuing their MBA abroad, focusing on flexible repayment and customized solutions.

Key Features

• Loan Amount: Up to INR 1 crore
• Interest Rate: Starting from 12.50% per annum
• Repayment Tenure: Up to 10 years

Eligibility Criteria

• Indian citizens with admission to recognized foreign institutions.
• Co-borrower required for loan approval.

Repayment Terms

• Flexible repayment options including partial and full moratorium periods.
• EMI starts post course completion.

Application Process

• Online Application: Apply through the Avanse website.
• Document Submission: Submit documents such as admission letter, co-borrower details, and financial proofs.
• Approval and Disbursement: Loan approval followed by disbursement.

For more Info: Click Here

6. Bank of Baroda Education Loan

Overview

Bank of Baroda provides education loans tailored for students pursuing higher education abroad, with a focus on high loan amounts and competitive rates.

Key Features

• Loan Amount: Up to INR 80 lakhs
• Interest Rate: Starting from 9.85% per annum
• Repayment Tenure: Up to 15 years

Eligibility Criteria

• Indian citizens with secured admission in recognized foreign institutions.
• Collateral required for higher loan amounts.

Repayment Terms

• Moratorium period includes course duration plus 6 months.
• Flexible EMI options post moratorium.

Application Process

• Online Application: Fill out the application form on the Bank of Baroda website.
• Document Submission: Provide necessary documents such as admission letter, collateral details, and identity proof.
• Approval and Disbursement: Loan disbursement upon approval.

For more Info: Click Here

7. Punjab National Bank Education Loan

Overview

Punjab National Bank (PNB) offers education loans for students planning to study abroad, with competitive interest rates and flexible repayment options.

Key Features

• Loan Amount: Up to INR 50 lakhs without collateral, higher amounts with collateral
• Interest Rate: Starting from 10.75% per annum
• Repayment Tenure: Up to 10 years

Eligibility Criteria

• Indian citizens with admission to recognized foreign institutions.
• Good academic record and collateral security for higher loan amounts.

Repayment Terms

• Moratorium period: Course duration plus 6 months.
• EMI options available post moratorium.

Application Process

• Online Application: Complete the application process on the PNB website.
• Document Submission: Provide required documents including admission proof, collateral documents, and identity proof.
• Approval and Disbursement: Approval followed by direct disbursement to the institution.

For more Info: Click Here

8. IDBI Bank Education Loan

Overview

IDBI Bank offers education loans for students pursuing their MBA abroad, focusing on flexible repayment and attractive interest rates.

Key Features

• Loan Amount: Up to INR 30 lakhs without collateral, higher amounts with collateral
• Interest Rate: Starting from 9.75% per annum
• Repayment Tenure: Up to 15 years

Eligibility Criteria

• Indian citizens with secured admission in recognized foreign institutions.
• Collateral required for higher loan amounts.

Repayment Terms

• Moratorium period includes course duration plus 6 months.
• Flexible EMI options post moratorium.

Application Process

• Online Application: Fill out the application form on the IDBI Bank website.
• Document Submission: Submit necessary documents such as admission letter, collateral details, and KYC documents.
• Approval and Disbursement: Loan disbursement upon approval.

For more Info: Click Here

9. Canara Bank Education Loan

Overview

Canara Bank provides education loans tailored for students pursuing higher education abroad, with a focus on high loan amounts and competitive rates.

Key Features

• Loan Amount: Up to INR 75 lakhs
• Interest Rate: Starting from 10.20% per annum
• Repayment Tenure: Up to 15 years

Eligibility Criteria

• Indian citizens with secured admission in recognized foreign institutions.
• Collateral required for higher loan amounts.

Repayment Terms

• Moratorium period includes course duration plus 6 months.
• Flexible EMI options post moratorium.

Application Process

• Online Application: Fill out the application form on the Canara Bank website.
• Document Submission: Provide necessary documents such as admission letter, collateral details, and identity proof.
• Approval and Disbursement: Loan disbursement upon approval.

For more Info: Click Here

10. Union Bank of India Education Loan

Overview

Union Bank of India offers education loans for students planning to study abroad, with competitive interest rates and flexible repayment options.

Key Features

• Loan Amount: Up to INR 60 lakhs without collateral, higher amounts with collateral
• Interest Rate: Starting from 9.85% per annum
• Repayment Tenure: Up to 15 years

Eligibility Criteria

• Indian citizens with admission to recognized foreign institutions.
• Good academic record and collateral security for higher loan amounts.

Repayment Terms

• Moratorium period: Course duration plus 6 months.
• EMI options available post moratorium.

Application Process

• Online Application: Complete the application process on the Union Bank of India website.
• Document Submission: Provide required documents including admission proof, collateral documents, and identity proof.
• Approval and Disbursement: Approval followed by direct disbursement to the institution.

For more Info: Click Here

Conclusion

Choosing the right education loan for your MBA abroad can significantly impact your financial stability and peace of mind. Each of the options listed above offers unique benefits, tailored to meet the diverse needs of students. Consider factors such as loan amount, interest rate, repayment terms, and eligibility criteria when making your decision. By securing the right loan, you can focus on your studies and make the most of your MBA experience abroad.

FAQs

1. What is the maximum loan amount I can get without collateral for an MBA abroad?

The maximum loan amount without collateral varies by bank. For instance, HDFC Credila offers up to INR 50 lakhs, while other banks like SBI and ICICI provide different limits based on specific criteria.

2. How long is the moratorium period for education loans?

The moratorium period typically includes the course duration plus an additional 6 months. This allows students time to find employment before starting loan repayments.

3. Are there any subsidies available for education loans?

Yes, the Indian government offers interest subsidies for education loans under schemes like the Central Sector Interest Subsidy Scheme (CSIS), particularly for students from economically weaker sections.

4. What documents are required for applying for an education loan?

Commonly required documents include proof of admission, academic records, identity proof, address proof, income proof of the co-borrower, and collateral documents if applicable.

5. How do I choose the best education loan for my MBA abroad?

Consider factors such as loan amount, interest rate, repayment terms, moratorium period, and eligibility criteria. Compare different loan options and choose the one that best fits your financial needs and future plans.

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Author - Abhishek Sonawane

Abhishek Sonawane, an MBA graduate from the prestigious Indian Institute of Management Visakhapatnam(IIMV), brings over ten years of experience in the finance domain. His extensive background includes various roles in financial management and strategy, providing him with a comprehensive understanding of the financial landscape. Abhishek’s expertise and dedication to financial education make him an authoritative voice in personal finance, helping readers make informed financial decisions.