There are many options to
consider when looking at how to fund your postgraduate studies. You can apply
for an education loan,
exclusive MBA scholarships for
Indian students, and also alternative subsidizations. Often, however, not all
of these choices are readily visible with a broad Google search and the process
can be time consuming.
Depending on the program, the price of studying for a MBA can
easily reach between US$50,000-US$60,000 per annum – if not more. And, despite
the fact that an MBA will provide you with better career prospects and
therefore a good chance of paying off your student debt quickly, it is very
valuable to know your options when it comes to initially covering this cost.
There are many different types of funding for each individual situation; choose
the right one and there’s a chance you could end up saving hundreds of dollars.
You might even gain a scholarship or fellowship into your chosen school and end
up not having to spend very much money at all.
MBA scholarships for Indian students.
A number of top business schools around the world
offer Education loan for MBA which are available to browse on their respective
websites. Like undergrad scholarships, MBA scholarships are given on the basis
of need or merit and can either provide either full or partial living expenses.
A partial scholarship would require the student to find additional funds.
The
downsides to scholarships are that they are often restrictive in terms of
eligibility criteria, and are few and very competitive. Also, in order to be
considered, you must apply early and within certain deadlines. You should also
bear in mind that often students can only apply to receive a scholarship once
they have been accepted to their chosen school.
Flexibility of repayment terms.
What
should be kept in mind here is the date you are required to start your
repayments and the timeframe you have to repay it. Often for Indian banks
repayment begins six months after the completion of the program or one month
after the borrower gets a job, whichever is sooner. Often the maximum tenure of
repayment is 15 years, beginning from the day you receive your first loan payment.
Prepayment penalty.
A
prepayment penalty may sound illogical to someone who considers faster payment
better, but it is implemented to protect the bank from losing out on the money
it would have received in interest if you had taken the full term to repay your
loan. Often the penalty is based on the rate of a certain number of months of
interest. If you are planning on paying off your loan with a lump sum, you may
want to find out exact figures from your chosen loan provider.
Collateral requirement.
Indian
banks tend to ask for collateral on your loan. Specific information is
available from their respective websites but generally this is what they ask
for;
·
Loans of up to
approximately US$6,500 – No collateral required.
·
Loans of above US$6,500 –
Requirement of a guarantor (e.g. a parent to sign a contract should you waiver
your payments)
·
Loans of above US$12,000 –
Requirement of a guarantor along with an assessment of future income. In some
cases this includes proof of assets such as a house, shares or an insurance
policy up to 200% of the overall loan amount.
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