Nowadays, the MBA is the most sought-after postgraduate degree worldwide with more applicants every year. Many bright students have the desire of pursuing an MBA overseas, but finances come in their way. If you are considering an MBA program abroad and seeking an education loan in India, it's important to understand that the maximum loan amount for overseas studies can vary among lenders and is subject to certain factors. Here's an overview:
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Loan Limit:
The maximum loan amount for overseas studies, including an MBA program, can range from a few lakhs to several crores of rupees. However, the exact limit depends on various factors such as the course, university, country, repayment capacity, collateral, and the lending institution's policies.
Cost of Education:
This includes tuition fees, living expenses, travel expenses, health insurance, and other related costs. The lending institution assesses these expenses to determine the maximum loan amount they can disburse.
Collateral and Security:
If you provide collateral or security for the loan, such as property, fixed deposits, or other assets, it may increase the maximum loan limit. Collateral provides additional security for the lender and may enable you to access a higher loan amount.
Loan Margin:
Lenders generally require you to contribute a certain percentage of the total cost of education from your own resources. The remaining percentage, subject to the maximum limit, can be availed as an education loan. The loan margin can vary, typically ranging from 5% to 15% of the total cost.
Repayment Capacity:
Your repayment capacity, including your future income potential and employability prospects after completing the MBA program, is also considered on your academic performance, work experience, and career prospects.
Government-Sponsored Schemes:
In India, certain government-sponsored education loan schemes, like the Canara Bank's Education Loan Scheme for Abroad Studies, have specific loan limits and eligibility criteria.
Before finalizing your loan amount, carefully assess the total cost of education, your repayment capabilities, and the interest rates offered by different lenders. Consult with the lending institution to determine the maximum loan amount available to you and ensure that it aligns with your financial needs and future plans.
