How to get education loan for MBA ?

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Education Loan For
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How to get education loan for MBA ?
Cost of higher education such as MBA may not be
affordable for everyone. In such situation people
tend to think about the Education Loans. Just to
bring clarity on this topic I am posting the
detailed procedure for availing an education loan.
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Pre-requisites for education loans Documents
Required

• You need to have a valid admission letter from an
  institution. This means you should have already
  been selected in the institution.
• Also get the complete expense details of the
  course you are pursuing. Before approaching bank
  find out the total cost of education including
  tuition fee, hostel fee, books cost etc.
• Mark sheet of last qualifying exam.
• Two of your photographs.
• You should also have sufficient money to pay a
  part of the total education cost. (around 20 of
  total education you need to bear, rest all would
  be paid by bank)

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Eligibility to get education loan

• All graduation, post-graduation and professional
  courses are eligible for an education loan. Also
  the courses that offer a degree or diploma can
  avail education loans.
• These courses could be from foreign universities
  or institutes approved by the state and central
  government.

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Various Education expenses covered under
education loan.

• Education loan doesnt cover only the Tuition fee
  but various other expenses too which are incurred
  in the course of your education. Some of such
  expenses are
• Tuition Fee
• Hostel Fee
• Cost of books needed during the course
• Cost of computer/laptop if it is mandatory for
  the course.
• Cost of flying, if the course is in abroad.etc
• In general
• Education Loan AmountTuition Fee Hostel fee
  Books Cost Equipment cost Flight Charges etc

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Security for your loan

• This depends on your Loan amount, if your loan
  amount is less than Rs.4,00,000/- you dont need
  to provide a security.
• If the loan amount is more then you need to
  provide security for availing the education loan.
• Security means surrendering some form of assets
  or investment to the bank for availing the loan.
  Some form of investments and assets that are
  accepted as security deposit by banks are
• Government securities,
• Shares ,
• Bank deposits,
• National Saving Certificates
• House property
• Land Property
• Shop etc
• In case you are not able to pay back the
  education loan, the bank will have rights to sell
  these assets so as to recover the loan amount
  from you.
•  

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Guarantor for your loan

• In cases when loan amount is not too big , but
  still higher than 4,00,000/- then the bank may
  ask for a third party to act as a guarantor for
  your loan instead of asking for security deposit.
• In case you are not able to pay the loan, the
  guarantor of your loan will be legally bound to
  pay the loan.

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Repayment of Loan

• Until you are pursuing the course for which you
  have availed the education loan you dont need to
  worry about its repayment. The repayment of your
  loan may start at
• some banks ask for repayment to start after 6
  months of completion of course
• while some other banks ask for repayment to start
  after a year of completion of course
• there is also option to start the repayment once
  you have secured a job. (but this doesn't mean
  that you can delay repayment of loan infinitely,
  after a certain period of time you are obliged to
  start the repayment of your loan irrespective of
  the fact whether you have secured a job or not)

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Repayment Instalments

• In most of the cases 10 years would be maximum
  tenure in which you need to pay back the loan
  after completion of the course.
• Perhaps the number of years for repayment of loan
  also depends on the amount of loan.
• If your Education loan for MBA amount is say
  around Rs.4,00,000/- then probably you may get
  5-7 years only for repayment of the loan.
• If the loan amount is larger then you may get 10
  years for repayment of the loan.
• Source http//howtoprepare4cat.blogspot.in/2009/
  02/how-to-get-education-loan-for-mba-and.html?show
  Comment1445087609079c7610768910035400928

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• Read more on Education loan for MBA
  http//www.avanse.com/avanse-education-loans/

Thank You..!!!