TomorrowMakers

The process of getting a personal loan for an Executive MBA and similar educational purposes

Education or Personal Loan

A master’s degree in business administration (MBA) adds dynamism to our professional careers. Executive MBA is a postgraduate management programme that is meant for professionals who are engaged in enviable positions in the corporate world. 

Professionals who went on to complete their further education with an executive MBA degree saw an average increase of 18% in their pay packages, as noted by an Association of MBA study. It can add more momentum to your career and increases your management competency, thus preparing you for the next leap in your job. It can enhance your job security and unfold new skills and knowledge for you.

Also Read: Loan scams in the digital age: What to watch out for

Why Personal Loan for Education?

Education loans may be secured or unsecured. A secured education loan requires collateral, which may not be available to every higher study aspirant. In an education loan, the student becomes the primary borrower. However, some parents may want to ease their wards of this burden and apply for a personal loan instead. Education loan is provided to meet specific expenses related to education. But you can use a personal loan to meet your executive MBA expenses as well as any other needs. In these situations, one may avail of a personal loan to finance his or her executive MBA or any other educational course.

What You Miss Out On With Personal Loan?

Tax benefits - Personal loans are convenient and can be availed of with minimal formalities, but you miss out on a few key benefits too. For instance, education loan repayment brings you tax exemptions under section 80E. This is available for up to 8 years of repayment. 

Interest rate - Besides, education loans, if secured, can be available at a lower rate of interest. The education loan interest rate in leading banks starts at 8.55% per annum. A personal loan, on the other hand, is an unsecured loan. Therefore, the interest rate on a personal loan may be higher compared to a secured education loan. Presently, personal loan interest rates start at 10.5% - 12% per annum among leading commercial banks. 

Repayment method and loan term – In a personal loan the repayment period starts immediately and is generally for a shorter duration. Education loan, on the other hand, has a moratorium period. After the completion of the course, lenders may provide a reasonable period for the student to land a job and become financially capable of repayment. 

Also Read: Home loan rates hiked: Is prepaying your home loan a good idea? Here’s what experts have to say

Personal Loan Eligibility Requirement 

The eligibility criteria for a personal loan are quite simple. Banks require you to be of a certain age, generally 21 to 60 years old. You must have employment in a recognized workplace. Besides, you must have a regular minimum income, the exact amount for which may vary. 

Besides, to improve your chances of getting a suitable personal loan for your Executive MBA, always ensure a good credit score, meet the income and eligibility criteria of the lender and furnish the required documents.

Also Read: Repo rate at an all-time high of 65%. Here’s how to make home loan affordable prepayments

Process and Documentation

Once you finalise your preferred lender, you can apply for a personal loan from them either online or offline. Thus, you can visit their branch and ask for the personal loan application process. Or you can visit their website, click on the personal loan application loan and initiate the application process. Ensure that you fill in all necessary information truly and accurately. Incorrect information and incomplete form often lead to the rejection of loan applications. 

Documentation – You will need to upload or attach supporting documents, along with the loan application form. These documents must be valid and legible. Typically, the following documents are sought while applying for a personal loan –

Identity proof, Address proof, bank statement and/or bank passbook for last 3-6 months, salary slip or salary certificate, Form 16 etc.

Arranging collateral for an education loan for MBA may be difficult for many. Besides, you need to furnish various course, admission and collateral-related documents for the loan for MBA in India. Personal loan offers a smoother and faster fund alternative to furnish the executive MBA you always coveted.

A master’s degree in business administration (MBA) adds dynamism to our professional careers. Executive MBA is a postgraduate management programme that is meant for professionals who are engaged in enviable positions in the corporate world. 

Professionals who went on to complete their further education with an executive MBA degree saw an average increase of 18% in their pay packages, as noted by an Association of MBA study. It can add more momentum to your career and increases your management competency, thus preparing you for the next leap in your job. It can enhance your job security and unfold new skills and knowledge for you.

Also Read: Loan scams in the digital age: What to watch out for

Why Personal Loan for Education?

Education loans may be secured or unsecured. A secured education loan requires collateral, which may not be available to every higher study aspirant. In an education loan, the student becomes the primary borrower. However, some parents may want to ease their wards of this burden and apply for a personal loan instead. Education loan is provided to meet specific expenses related to education. But you can use a personal loan to meet your executive MBA expenses as well as any other needs. In these situations, one may avail of a personal loan to finance his or her executive MBA or any other educational course.

What You Miss Out On With Personal Loan?

Tax benefits - Personal loans are convenient and can be availed of with minimal formalities, but you miss out on a few key benefits too. For instance, education loan repayment brings you tax exemptions under section 80E. This is available for up to 8 years of repayment. 

Interest rate - Besides, education loans, if secured, can be available at a lower rate of interest. The education loan interest rate in leading banks starts at 8.55% per annum. A personal loan, on the other hand, is an unsecured loan. Therefore, the interest rate on a personal loan may be higher compared to a secured education loan. Presently, personal loan interest rates start at 10.5% - 12% per annum among leading commercial banks. 

Repayment method and loan term – In a personal loan the repayment period starts immediately and is generally for a shorter duration. Education loan, on the other hand, has a moratorium period. After the completion of the course, lenders may provide a reasonable period for the student to land a job and become financially capable of repayment. 

Also Read: Home loan rates hiked: Is prepaying your home loan a good idea? Here’s what experts have to say

Personal Loan Eligibility Requirement 

The eligibility criteria for a personal loan are quite simple. Banks require you to be of a certain age, generally 21 to 60 years old. You must have employment in a recognized workplace. Besides, you must have a regular minimum income, the exact amount for which may vary. 

Besides, to improve your chances of getting a suitable personal loan for your Executive MBA, always ensure a good credit score, meet the income and eligibility criteria of the lender and furnish the required documents.

Also Read: Repo rate at an all-time high of 65%. Here’s how to make home loan affordable prepayments

Process and Documentation

Once you finalise your preferred lender, you can apply for a personal loan from them either online or offline. Thus, you can visit their branch and ask for the personal loan application process. Or you can visit their website, click on the personal loan application loan and initiate the application process. Ensure that you fill in all necessary information truly and accurately. Incorrect information and incomplete form often lead to the rejection of loan applications. 

Documentation – You will need to upload or attach supporting documents, along with the loan application form. These documents must be valid and legible. Typically, the following documents are sought while applying for a personal loan –

Identity proof, Address proof, bank statement and/or bank passbook for last 3-6 months, salary slip or salary certificate, Form 16 etc.

Arranging collateral for an education loan for MBA may be difficult for many. Besides, you need to furnish various course, admission and collateral-related documents for the loan for MBA in India. Personal loan offers a smoother and faster fund alternative to furnish the executive MBA you always coveted.