Financing your MBA in India

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Figuring out how to fund your education in the best manner

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 India is a huge market for education loans. There are close to 25 + lenders who give out education loans to Indian students looking to study abroad or in India. There are multiple kinds of lenders funding education loans, classified as Nationalized Banks, Private Banks, Non-Banking Financial Companies (NBFCs) and International Lenders.

While some students may be highly fundable, others may have certain profile weaknesses which may be an issue with a certain lender. But all in all, every lender wants to fund a good student. This “good” is defined by the way they set their credit policies. Every worthwhile student has atleast one lender who would fund him/her. They key is to exhaust all your options primarily because
if one fails you, you always have the other lender to depend on
In case you get approved by atleast 2 lenders, you open the window of better negotiations.
Types of Lenders:
So, how does one choose which lenders to apply with and feel confident about that decision?

Nationalized Banks
If seeking loans above INR 4 Lakhs (to study in India) or above INR 7.5 lakhs (to study abroad), be prepared to approach them only if you have a valid collateral to offer against the loan as security. That’s mostly what will matter to them. Examples - SBI, Bank of Baroda, Canara Bank, Indian Bank, etc

Private Banks
When time & service is your priority, exercise this option. A little sophistication goes a long way with the current generation when it comes to going through the overwhelming process of loans. Possible to get upto INR 40 lakhs of unsecured education loans with them, provided your school/program falls into their approved list of schools. Examples - ICICI, Axis

Non Banking Financial Companies (NBFCs)
When a profile issue is what is bothering you, NBFCs could be the answer to your student loan. Non-collateral loans upto INR 40 lakhs, faster decisions, higher deviations, flexible policies and great service is what you can expect from these NBFCs.Examples - HDFC Credila, Auxilo, Incred, Avanse

The above three are options to exercise with Indian set of lenders. Hence, 99.9% of the times, you’d mandatorily have to apply for an education loan with a financial cosigner (someone who’s earning on a monthly basis, filing income tax returns, is from your immediate family and would also be financially responsible in the case of any eventuality). 

GradRight( is a platform which brings multiple lenders together on a single platform for the benefit of students.

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