How to finance MBA for international

Question

Hi everyone. 
I am very happy to be accepted into the Top 20 MBA program (US).

I am an international student. 
I applied to Prodigy, but they declined my application I guess due to their scoring algorithm, though I have saving and a flat.
Any ideas? What else I can consider as well?

Thank you all in advance.

bb · Answer

Sorry about Prodigy! That's a bit unusual for them to decline an applicant (though things happen depending on the political and economic situation). We even have a rebate with Prodigy... oh well.

There is also MPOWER - they can offer up to $50K/year I believe and seem to have easier qualifications. Have you tried them?

Another place to look would be your business school - ask your admissions team as to what options exist for international students. Sometimes they have deals with some of the local credit unions or banks (only Top 10 usually) though those have been falling apart due to Prodigy's success... which is a double edge sword since it takes out competition and then there are no options when Prodigy does not work.

InvGuy · Answer

Hi bb.

Thank you for your answer. 
It is a bit strange to me given my profile, savings, and top-tier school. Probably they rejected me because I am from a former Soviet country.

I should try other providers. Do you know Juno?

bb · Answer

They do have a list of countries that seems to change from time to time, depending on the funding and risk sources. It think Juno and MPOWER financing are worth trying - they are all worth a shot and may offer similar or even better options. P.S. 10 years ago none of these 3 companies existed so it was quite challenging to get and finance your MBA.

GyanDhan_Finance · Answer

Hello,

Secured loans  typically involve the provision of collateral, enabling borrowers to secure higher loan amounts compared to unsecured loans. Additionally, opting for a secured loan may negate the necessity for a co-applicant.

If you are exploring education loan options for studying MBA abroad, two noteworthy public sector banks to consider are the State Bank of India (SBI) and the Union Bank of India (UBI). In the subsequent sections, we present a comparative analysis of these two banks with regard to education loans for pursuing studies abroad.

State Bank of India (SBI) 
The maximum loan amount offered by  SBI  is up to 1.5 Crore INR. For interest rates, SBI charges 10.65% for female applicants and 11.50% for male applicants. The margin money requirement stands at 10%.

Union Bank of India (UBI) 
 UBI  also extends a maximum loan amount of up to 1.5 Crore INR. The interest rates at UBI range from 10.5% to 10.85%. The margin money requirement is 10% for students enrolled in listed universities and 15% for those in non-listed universities.

If you don't possess collateral, there's no need to worry, as numerous private banks,  NBFCs  (Non-Banking Financial Companies), and international lenders can assist you when applying for an education loan to study in abroad. While  private banks  and NBFCs may require a co-applicant or co-signer with a minimum financial income and no liabilities, international lenders offer loans without the need for a co-applicant or co-signer.

Each lender offering education loans to study in abroad has its own set of advantages and disadvantages. To aid you in selecting a suitable lender, we have prepared a comparative chart encompassing all potential lenders that offer unsecured education loans. These unsecured loans are available for Bachelor's,  MBA , and Master's programs.

Axis Bank  offers a maximum loan amount of up to 50 Lakhs INR with a competitive rate of interest ranging from 11% to 13.50%. Additionally, a margin money requirement of 5% is applicable. Similarly,  ICICI Bank  provides a maximum loan amount of up to 50 Lakhs INR, featuring an interest rate between 10.85% and 12.50%. The margin money requirement varies from 0% to 15%. For those considering  IDFC FIRST Bank , the maximum loan amount is up to 35 Lakhs INR, with an interest rate ranging from 11.75% to 13.25%. Notably, IDFC FIRST Bank does not impose any margin money requirement.

HDFC Credila  extends a maximum loan amount of up to 40 Lakhs INR, with an interest rate in the range of 12% to 13%. Similar to IDFC FIRST Bank, HDFC Credila does not require any margin money. Moving on to Auxilo, the maximum loan amount offered is up to 40 Lakhs INR, accompanied by an interest rate ranging from 12.50% to 13.50%. No margin money is specified by Auxilo.  Incred , like  Auxilo , provides a maximum loan amount of up to 40 Lakhs INR, with an interest rate between 12.50% and 13.50%. No margin money is mandated for Incred.  Avanse  offers a maximum loan amount of up to 40 Lakhs INR, featuring an interest rate ranging from 12.50% to 13.50%. Similar to Auxilo and Incred, Avanse does not require any margin money.

For those considering  Prodigy Finance , the maximum loan amount is up to 100,000 USD, with an interest rate in the range of 12% to 14%. Prodigy Finance does not have a specified margin money requirement. If you want to fund your education loan to abroad you can  check your eligibility  through GyanDhan and leave all the hassle to us.

How to finance MBA for international

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