When contemplating study abroad, one of the first criteria to be considered is the cost involved however well-off the student may be. Educational loans have proved the saviour of many students who wished to explore new frontiers and enhance their career prospects in their chosen fields.
Given the relatively stringent admission criteria (high academic scores, work experience, etc.), popularity and promise of high reward; it is understandable that an MBA is an expensive course to pursue. This translates into most students needing to take a loan to make their dream come true.
Increase your chances of getting loans
• Unlike loans for other levels and subjects of study, the MBA, being a specialist area of study, has specific loan procedures associated with it. Two major factors set the MBA course apart from a lot of the other subject areas: the flexibility to complete the degree from anywhere between 1 to 2 years and the fact that of all courses, it is the most likely to lead to an immediate job opening at a medium to high designation. Keeping this in mind can help you plan better when you take a loan to do your MBA - whether you want to complete it in the shortest time possible or not compromise on the quality of learning in case you’re confident about landing a good position.
• Being employed at the time of applying for your loan can significantly increase your chances of being considered for an MBA loan. After completing the application form you will have to attend a personal discussion, where you will have to outline your broad plan about the selection of the course and your expectation of its income-generating potential. The minimum amount that can be availed from most banks in India for an MBA course abroad should be in the range of Rs. 20 lakh.
How to repay your loans?
• Repayment of these loans is the last major hurdle to a successful and growing career and as such, the subject deserves serious consideration. There are several options to plan your method, style and rate of repayment. For a start, you could have the option to defer payments if pressing circumstances, personal or official, prevent you from receiving your degree on time. You could also explore any flexible repayment options that your bank may offer.
• Another method to offset the cost of the program and not leave too much to repay at the end of the course is to pursue a part-time program or one that allows you to work while studying at night or on the weekends. There could be a couple of problems with this. Firstly, the majority of students who’ve been through or are currently doing this vouch for the fact that it is extremely taxing and likely to take a toll on your studies, your job, your health or all three. Second, not many international students get a visa for this kind of study program. However, it does help you save a considerable amount of money over a longer period of time and if your employer helps by subsidizing a part of your tuition fee, it further reduces the repayment amounts due on your loan.
• Base starting salaries of mid-level positions for MBA graduates of reputed institutions range from anywhere between $ 60,000 to $ 180,000; in some cases, it could be as much as $200,000. With tuition fees for the top MBA programs around the world touching $ 100,000 or more, you can work out for yourself the loan amount and the repayment method that would suit you best.
The key for international students who are capable and confident is to look at the MBA
as a wonderful opportunity for a fantastic and, in the current scenario, assured return on investment, rather than as something that only the very rich should attempt. If you choose the right institute, work out what loan interest rate and repayment options suit you best and put in the hard yards, you could be well be on your way to a fulfilling and highly rewarding professional career.