According to the 2022 India Skills Report, it's expected that around 55.09% of MBA graduates will be employable in the 2023-2024 period, showing a rising trend. This makes an MBA degree quite promising for job opportunities, second only to engineering. Many students opt to pursue an MBA abroad due to its global recognition, but it's important to note the high costs involved. To manage these expenses, a lot of international students choose to take out education loans. It's crucial to thoroughly explore loan options to make well-informed decisions about pursuing an MBA abroad.
Cost of MBA Abroad
Before heading abroad for an MBA, international students face various upfront costs. These include entrance exam fees, application fees, visa application fees, airfare, and more. Check out the estimated pre-arrival expenses for Indian students pursuing an MBA abroad.
| Expenses | Cost |
| IELTS registration | USD 250 - USD 300 |
| TOEFL registration | USD 195 |
| GMAT registration | USD 250 |
| Visa fees | USD 500 (may vary depending on the country) |
Likewise, the tuition fee is a crucial expense to consider when applying for an MBA program abroad. To provide an overview of the average tuition fees, here is a table showcasing the costs for some of the top study-abroad destinations:
| Country | Tuition fee per year |
| USA | USD 50,000 - USD 60,000 |
| UK | USD 38,000 - USD 54,000 |
| Canada | USD 21,800 - USD 29,000 |
| Australia | USD 26,200 - USD 39,000 |
The cost of living is a key expense for MBA students abroad, forming a substantial part of their overall expenditure. It's essential to factor in housing, transportation, meals, healthcare, and daily expenses when preparing for your MBA journey overseas. The table below shows the average living costs in popular study-abroad countries.
| Country | Cost of living per month |
| USA | USD 1,000 - USD 1,500 |
| UK | USD 980 - USD 1,420 |
| Canada | USD 700 - USD 9,00 |
| Australia | USD 720 - USD 980 |
Options for Financing MBA Education
There are two main types of education loans for studying MBA abroad:
- Secured Education Loan: This type requires the applicant to offer collateral, like property or assets. Different types of collateral are accepted; you can find more information here.
- Unsecured Education Loan: This loan doesn't need collateral, but it usually has higher interest rates due to increased risk. Typically, a co-applicant or co-signer is required, and the loan amount depends on their income and CIBIL score. Read more about it here.
Education loan with collateral for MBA abroad
Secured loans need collateral, which can mean you get more money and might not need someone else to apply with you. If you're thinking about getting a loan for your MBA abroad, check out SBI and UBI—they're public sector banks that offer this kind of loan.
| Lender Name | Maximum Loan Amount (in INR) | Rate of Interest |
| SBI | Up to 1.5 Cr | 10.65% (for girls)
11.50% (for boys) |
| UBI | Up to 1.5 Cr | 9.50% - 10.80% |
Education loan without collateral for MBA abroad
If you don't have collateral, no worries. Private banks, NBFCs, and international lenders can still help you get an education loan for your MBA abroad. Private banks and NBFCs might need someone with a decent income to apply with you, while international lenders offer loans without a co-applicant. Keep in mind, though, that international lenders give loans in USD, which might save on currency conversion fees, but they often have higher interest rates.
| Lender Name | Maximum Loan Amount | Rate of Interest |
| Axis Bank | Up to 50 Lakhs INR | 11% - 13.50% |
| ICICI Bank | Up to 50 Lakhs INR | 10.85% - 12.50% |
| IDFC FIRST Bank | Up to 50 Lakhs INR | 11.50% - 13.25% |
| HDFC Credila | Up to 65 Lakhs INR | 11.25% - 13% |
| Auxilo | Up to 65 Lakhs INR | 11.25% - 13% |
| Incred | Up to 60 Lakhs INR | 12.25% - 14% |
| Avanse | Up to 75 Lakhs INR | 12.50% - 13.50% |
| MPOWER Financing | Up to 100,000 USD | 12.99% |
| Prodigy Finance | Up to 100,000 USD | 12% - 14% |
Choosing the best financing option
To pick the right lender for your MBA abroad education loan, GyanDhan provides useful guidance to minimize your long-term financial burden. To make an informed choice, compare the following aspects across lenders and loan options:
- Interest Rate
- Processing fee and time
- Margin Money
- Moratorium Period
- Tax Benefit
- Loan Duration
- Covered Expenses
- Prepayment terms and conditions
By thoughtfully considering these factors, you can choose the educational loan that suits your requirements and comes with favorable terms and conditions.
Before you start applying for an education loan for your MBA abroad, it's essential to thoroughly research and compare what different lenders offer based on various factors. However, GyanDhan makes this process easier by offering direct and ongoing assistance. GyanDhan's straightforward education loan process guarantees a smooth experience, and our knowledgeable education loan counselor will evaluate your academic and financial background to talk about the most suitable loan options. GyanDhan has teamed up with various lenders, including government banks, private banks, NBFCs, and international lenders. Take the next step now and check your loan eligibility!
If you have any queries regarding MBA funding, drop us your query on GMAT Club here.
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