Education Loan for MBA in India

I want to do MBA in India and I want to know information of the education loan so can you provide me the information as it is very urgent for me

[Pathak]

As you want to know the information of education loan for MBA in India so here is the information of the same for you:

Documents required at the time of loan:

Loan application in bank's format
Passport size photos
Address proof
Age proof
Copies of marks sheets in the qualifying exams
Letter of admission in the course
Prospectus of the course where the course fee is mentioned
Co-borrowers income tax assesment order of last two years
Co-borrowers proof of income (salary slip)

Students must be:

An Indian by nationality
Should have a good academic record
Should have documentary proof of having securing admission to the course through an entrance test or selection process

Here is the list of banks which offers education loans:

Oriental Bank Of Commerce
State Bank Of India Non-Scholar Scheme
State Bank Of India Scholar Scheme
State Bank Of Hyderabad
Bank Of Baroda
ICICI Bank
Canara Bank
Punjab National Bank
Central Bank Of India
Dena Bank
Andhra Bank
Bank Of Rajasthan
HSBC Secured Loan
Bank Of India
State Bank Of Patiala
Allahabad Bank
HSBC Unsecured Loan
IDBI Bank
Canara Bank

If you want some more details about any of these banks then please ask me

Hi I would like to get a rough idea about the education loan in India & what are the important factors involved?

[Raman Vij]

The brief scenario for the education loans in India is as follow:

Many banks in India and across the world present education loans for Indian students wishing to study abroad or at home. The amount you are eligible to receive depends on the program but it can be up to roughly US$16,000.

The clear drawback of a bank loan is that it will only cover partial student fees and often students must be reliant on family members to pay the rest.

Banks also do not willingly give loans to all applicants; a successful applicant will have to have been accepted into his/her chosen school and hold a concrete academic record.

Interest rates change wildly depending on which bank you opt for. Often interest rates are significantly higher for education loans from Indian banks.

Here is a rough lead to education loan interest rates from leading Indian banks (based on loans between US$6,500-US$12,000 at current rates, per annum - November 2013):

IDBI – 11.25%

Bank of Maharashtra – 12%

Indian Overseas Bank (IOB) – 12%

Canara Bank – 12.45%

Bank of Baroda (BOB) – 12.75%

State Bank of India (SBI) – 13.5%

Punjab National Bank (PNB) – 13.75%

Most of these taxes are unfixed or ‘floating’, meaning they are liable to increase. This causes the whole repayment to be determined by the future market economy.

Often for Indian banks reimbursement begins six months after the completion of the program or one month after the borrower gets a job, whichever is earlier.

A prepayment penalty may sound irrational to someone who considers faster payment better, but it is implemented to defend the bank from losing out on the money it would have received in interest.