How do you fund your MBA??

MBA
1

hi folks ok this is my first post and i am putting in a new thread! daring!! haan! especially with punks likes simba and (whose the person who looks like Ninja…) Anyways…let me out my querries across! All people who are dreaming for an …

2
hi folks
ok this is my first post and i am putting in a new thread! daring!! haan! especially with punks likes simba and (whose the person who looks like Ninja...) Anyways...let me out my querries across!

All people who are dreaming for an MBA ouitside!!
How do you guys are planning to get the money from ! I mean! How can one afford the MBA without much in thier hands.

Please help!!!
3
sweekruth.s Says
hi folks ok this is my first post and i am putting in a new thread! daring!! haan! especially with punks likes simba and (whose the person who looks like Ninja...) Anyways...let me out my querries across! All people who are dreaming for an MBA ouitside!! How do you guys are planning to get the money from ! I mean! How can one afford the MBA without much in thier hands. Please help!!!


Good... you're thinking well ahead and long term. It's nothing magical. A couple of simple steps:

a) If you have decided to get and MBA, work for the next 4-5 years and save every penny you can. If you're dedicated without being completely kanjoos / makkhichoos, you'll still be surprised as to how much you have in the bank. Obviously, the potential to save rises with the degree of progress you make in your career.

b) If you get into a top 10 school in the US or Top 3-4 in the EU, you would most probably be eligible for a loan to cover a Substantial part of the education.

Cheerz & good luck
4

i am not convinced with point one baccardispirit,

Mr. sweek ruth has got a valid point.
sir u hv put two points a & b

@ a
consider this hypothetical case of an average prospective student.
the amount we save during our job in 3-5 years is let say 2 lakhs. (avg.)
and normal MBA bugdet goes US $50000 ie 22 lakhs.

now even if you secure 50-60% scholarship or fin aid.
you still hv to manage 8-10lakhs.
so thats the problem.

also @ 2
the loan you would get on gettting into top school , is it collateral>?

what if i do not secure admission in top colleges.

what is finance structure can i still claim for not-a-collateral-loan?

5
i am not convinced with point one baccardispirit, Mr. sweek ruth has got a valid point. sir u hv put two points a & b @ a consider this hypothetical case of an average prospective student. the amount we save during our job in 3-5 years is let say 2 lakhs. (avg.). And normal MBA bugdet goes US $50000 ie 22 lakhs. now even if you secure 50-60% scholarship or fin aid. You still hv to manage 8-10lakhs. so thats the problem. also @ 2 the loan you would get on gettting into top school , is it collateral>?
what if i do not secure admission in top colleges. what is finance structure can i still claim for not-a-collateral-loan?


At no stage did I say that one's own savings are always enough. They could be (if you work abroad and save as well), but not always. One's savings are required and can be useful to take care of living & travel costs for example! They reduces your total borrowing, AND therefore the financial risk you undertake. Saving will also provide you with the financial discipline necessary to do the MBA... To your questions:

a) If you have decided to do an MBA after 5 years (example), and save only INR 2L n those 5 years, there's something wrong. Try the math, take an average Joe with a B.E or B.Tech degree starting at a Software/IT/BPO (since that's where most Indian MBA aspirants for foreign MBAs come from), calculate the gross salary, take 30% off for tax, and take 50% of the inhand salary to save. Then factor in a salary increase of 15-20% a year and calculate the savings year on year. The assumptions made are, that you save diligently, and you progress in your career. With the opportunities available in India, these figures are more than achievable. Without the latter, you won't get admission to a good b-school abroad. See what you come up with, sure much higher than the INR 2L.

b) In a really top school, the loan is generally available collateral free (particularly in a top 10 us school) and comes with a grace period meaning you don't have to start repaying until 6 months after school or once you get a job whichever is earlier. Two exceptions - the LBS collateral free loan from HSBC is NOT guaranteed (unlike for the US Top 10), and INSEAD doesn't have a loan scheme available to incoming MBAs after they lost their previous deal with ABN Amro.

c) If you don't get into a top school, then I'm afraid you do have a financial headache, and must depend on Indian Bank loans with higher interest rates (and NO repayment grace periods) or hope like hell for a scholarship which would reduce your burden. These are (probably) available at all schools top or not, but are fiercely competitive to get. Which means you'd have to work hard to score well on the GMAT, do well enough in your career, and have good enough potential to be a leader to win one of these.

Point is, whatever you do or wherever you go - an MBA takes planning and saving.
6
hi folks
ok this is my first post and i am putting in a new thread! daring!! haan! especially with punks likes simba and (whose the person who looks like Ninja...) Anyways...let me out my querries across!

All people who are dreaming for an MBA ouitside!!
How do you guys are planning to get the money from ! I mean! How can one afford the MBA without much in thier hands.

Please help!!!



Watch out your words pal. You're speaking about some of the senior members of the forum and that not daring that's inanity.

Please search before opening threads for generic queries there are similar underutilized threads that could be used to post your queries an example would be

http://www.pagalguy.com/discussions/rough-financial-estimate-for-studying-abroad-25016367
7

Consider a couple of options (some unexplored personally!!):
- Bank loans from India with / without collatoral security
- www.iefc.com (they are represented by Paras in Mumbai although the connection between them as principal - agency is not visible)
- www.myrichuncle.com

- most schools mention details of any tie-up's with banks for funding. also many offer various scholarships - so go for them. You never know what clicks for you.

cheers.......Sandeep

8
Hi Sweekruth and others

Its a good idea to look at financing options before applying. but let that not influence your decision in the selection of bschool. you'd be amazed by the range of options which develop post admission, ofcourse you've to keep on exploring : no pain, no gain....

lets look at different options :

1. personal savings : though i'm no expert in this, makes sense to have atleast few lakhs as your own personal savings
2. family savings : convince your family on the value of an international mba and take them along, fathers are generally a bit conservative in parting big money, but with your life at stake, do your best....
3. relatives : many of them may be eager to help, use your goodwill, if you dont have any, start working on that
4. friends : goes without saying !!
5. Scholarships/Tuition waiver
5. Financial Aid - Loans
6. Loans from Indian Banks : believe Canara bank is the most cooperative, depends a lot on the bank manager. use your presentation, negotiation skills and you can talk about all that $$ post mba which will come back to the bank in an nri account blah blah....

if the loan is more than 4.0 L, you need a co-obligant/guarantor (normally the parent). the bank takes collatarel equivalent to the loan value which can be property, financial instruments etc
if its property, you need to get the following :

1. Original property documents
2. Legal opinion (bank will suggest an advocate)
3. Property evaluation (Chartered engg, again bank will suggest one)
4. Possession certificate (For municipality/villages take from village college and for corporation area, take it from corporation/sub registrar office)
5. Latest Encumbrance certificate (Sub registrar/Village office as the case may be)
6. Latest Property tax receipts

Submit all these to the bank manager with the complete application form (and any other supportings such as parents financial investments copy etc). If the application and supportings are good enough and you are able to present well to the manager, i dont foresee much of a problem

It took me almost 40 days for me to complete this process (collecting the application to submission at the bank)in 2001 when I was trying to goto US (Purdue MS) but I completed the entire process in just one week this time in june'06.

so get going !!

9
Hi Sweekruth and others
Its a good idea to look at financing options before applying. but let that not influence your decision in the selection of bschool. you'd be amazed by the range of options which develop post admission, ofcourse you've to keep on exploring : no pain, no gain....

Hi PG,

Really a good way to think about this... However, I want to know all the options in detail & Indeed an MBA Abroad is possible financially?; Say If I can manage some 8/9 Lacs on my own. & hav a 750 GMAT score, I would still need a minimum of 22/25 Lacs more to fund my MBA.. Think of this as if you have taken a home Loan.. (If u tk such in Pune or Mumbai) the amount can easily catch this figure in a good locality. Now if u hav a promising job, you can still pay it back. So for people I think we should venture out as much as possible.. But the question is who is ready to give so much Loan.... Now I have some specific Loan related questions....

1. What does a Mary Sally Loan Mean for INDIAN Student..
2. What does a Federal Loan mean for INDIAN Student..

(ARE THESE WITH OR WITHOUT COLLATERAL SAY I DON HAV A US BASED "RICH UNCLE"!)

3. What do guaranteed Loans from Citi Financial without a collateral mean for INDIAN Student...
4. What do Scholorships mean for Indian students...can u expect them from the US Middle tier school?
5. Are there any unusual financial ways of going about it.. for instance A guy workin for an IT co. gets posted for 3 years in the US and meanwhile he completes his MBA easily on his salary..
6. Any chance of getting a Job in the US, working for a couple of years, and then getting an MBA?
7. If people find things difficult financially does it make sense to go do MS, and then take up a Job in the United states and then take up an MBA...

I know a lot of questions.. Thats how I am on PG a : !!

:) Thanks guys... This forum is one of the best I hav seen.. n Rock! its Indian!!
=========================================================
My condolences to the deceased in Mumbai Serial blasts...
I really think, we should take an Israel type stand and make arial strikes on terror camps
=========================================================
10
can someone with US app experience guide him ?? Good set of Qs, Abhinandhan Shah !! perhaps, you should read the blog of simba first(www.simba.pagalguy.com) to get a clear picture of application process and finances. all the best

cheers
11

Hi Sandeep and others,

Could you plz elaborate on the point in regard to Paras Loans


- www.iefc.com
(they are is represented by Paras in Mumbai although the connection between them as principal - agency not visible)

From their Website its mentioned that they have tie up with International students loan Organisation.

Hope there is no hidden agenda behind it.

Cheers

Shelly



12

Could be that my info is outdated...I refer to my knowledge of 2004. The acid test would be explore with Paras as well as IEFC directly and separately.

Regards.....Sandeep

13

hi guys,
i am a prospective MBA applicant. I want to pursue MBA from US. I wanna know that in the financial statement for international students can we show liquid cash as well as assets such as property etc. How can one show $100,000 in cash? plz help me.

yash

14
hi guys,
i am a prospective MBA applicant. I want to pursue MBA from US. I wanna know that in the financial statement for international students can we show liquid cash as well as assets such as property etc. How can one show $100,000 in cash? plz help me.

yash


Dude, the first concern is taking GMAT, TOEFL and strategising your apps. Most top schools need the document after admit. Some middle-tier schools need it during application.
All that you need to show is to cover 1 year expenses in liquid, Semi-liquid assets. The rest in property. Ask your distant relative or a close friend to support you with documents only if need be.
15
hi guys,
i am a prospective MBA applicant. I want to pursue MBA from US. I wanna know that in the financial statement for international students can we show liquid cash as well as assets such as property etc. How can one show $100,000 in cash? plz help me.

yash


we can pull up something. May be form a team. Ocean's Eleven anyone?

On a serious note, if you are looking for mostly the top 15 then you dont need to think about it before an admit. Concentrate on GMAT, TOEFL, and applications.
I am not sure about 15-30. But AFAIK, most of the these schools do not require the financial statement as part of the application process.
16

guys you might want to have a look to a similar thread.

http://www.pagalguy.com/discussions/how-do-you-fund-your-mba-25016594

thankyou.

17

bumping the thread,
i want the answer from anybody who already have done MBA from US.
Baccardisprite is also welcome :)
Run Forrest, Run: Some tidbits from the BWeek rankings 06

check what author has found from BW premium content.

the last line says

The average cost of the Harvard MBA is $345,401 and it takes 14.44 years to break even.

lets discuss about this peeps.

PS i also raised same question in my latest article in my blog. feel free to comment.

18

Merged two threads and locked the third!

Doesnt anyone use the search option anymore??

19

Hi Guys....

I presume and am confident that lot of potential students would have got admit admit from institutes ... now the next step in the proces is to finance the huge investment... there fore starting new thread to take all your inputs...

What are the resurces available to finance studies in various parts of the globe... (For an international students - given that the college does not have an tie up with bank)

I do understand that all the guys are looking at financing either thru some international agencies( requires US cosignor) or thru their home country...

But from an Indian perrspective, what will be the resources available, assuming that the US cosignor is not available and would like to study in US / Canada / Europe.....

Please do revert with your views

Thanks

20

http://www.pagalguy.com/index.php?categoryid=43&p2;_articleid=439

Seriously, doesnt anyone use the search option anymore??