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Indian Applicants please read this..

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Author Message
8 KUDOS received
Manager
Manager
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Joined: 04 Jul 2013
Posts: 92

Kudos [?]: 37 [8] , given: 30

Location: Australia
Concentration: Strategy, Technology
GMAT 1: 690 Q47 V38
GPA: 3.2
WE: Information Technology (Consulting)
Reviews Badge
Indian Applicants please read this.. [#permalink]

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New post 19 Nov 2014, 18:34
8
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BOOKMARKED
Hi Guys & Gals

It sucks to be an Indian applicant and sucks+1 if you are an IT male applicant and sucks +2 if you are from TCS, INFY etc. :) ..You get the idea

Now I am not going to bore you to death about how you need to differentiate yourself and whether to retake GMAT or not and all other standard questions.. This post is to highlight the struggle that myself and several of my future classmates are currently going through to come up with funds for the MBA.

Your options for funding -
1) Personal savings (most of us have none)
2) Scholarship (if you got full ride, please stop reading)
3) Loan from BSchool (count yourself lucky)
4) Prodigy Finance (not all schools are covered) but still a very real option.
5) Education Loan from India (capped at 20L)
6) Loan from local bank in the country you are going to study

Here I want to share our collective experiences wrt option 5 & 6.

First of all, it is very much possible to obtain an educational loan from an Indian Bank for an amount of more than 20L. The catch is, you need to show ~ 120% collateral. It has been done before and I am hoping I will get the approval in next few days. Not all banks will do it, however SBI and Bank of India are the ones that I know of.
Please note this will be a very lengthy process as any amount more than 20L needs to go to Exec Director or MD for approval.

Next, let’s talk about option 6. To make this work, you need either a local co-signor or an International Bank Guarantee (IBG) from an Indian Bank.

You would need the local bank to send you the text of International bank guarantee. The text will then have to be vetted by the legal team of the Indian Bank. If they approve, then the Bank will approach RBI on your behalf to obtain their permission and FEMA exemption. The IBG basically states that, should you fail to pay the money to the local bank, the Indian bank is liable to pay the amount on your behalf. Again, you would need ~120% collateral.

The whole process takes around 1.5 months, out of which RBI will take 1 month to provide the approval. Please know in advance, as of today, only HDFC bank and Central Bank will provide you with the IBG. SBI and IDBI Bank used to do it, but rules have changed recently. Others would have not even heard of it. The biggest challenge with this approach is that IBG is hugely unpopular with desi banks as they don’t get to make the money. At most they can charge you a % of the total amount which is much less than the interest you would owe them for an educational loan.

I wasted 6 months with SBI and IDBI so please don't bother talking to them and asking for BG. You WON'T get it.

I hope, when the time comes, you will know what to do and where to go. I will update if I get any new information.

All the best for your Yam Bee Yay!!!
_________________

Take care to get what you like or you will be forced to like what you get!!

Kudos [?]: 37 [8] , given: 30

Manager
Manager
avatar
Status: MBA Mentor
Joined: 28 Oct 2014
Posts: 67

Kudos [?]: 17 [0], given: 1

Location: Korea, Republic of
Concentration: Strategy, Other
Schools: SDA Bocconi - Class of 2011
GMAT 1: 700 Q50 V34
GPA: 3.21
WE: Analyst (Telecommunications)
Re: Indian Applicants please read this.. [#permalink]

Show Tags

New post 20 Nov 2014, 18:06
Hi,

I definitely see your point about the profile as there are lots and lots of that in the MBA applicant pool.
But its not very difficult to differentiate yourself if you really have something to showcase in your profile.

I understand you are in the same pool, but there are lot of other things to your profile as well then just country and industry. Those are important pieces but still there is more to a profile :)

And regarding Loan options :
Something to add there, lot of universities offer Student Loans without a co-signor or any guarantee. Sometimes, its not for the full tuition (like covers only 70~80%), but there are options like that.
I myself got a loan without any co-signor, collateral or anything from an Italian bank for 70% tuition.

Cheers !
Dhiraj

ashkul123 wrote:
Hi Guys & Gals

It sucks to be an Indian applicant and sucks+1 if you are an IT male applicant and sucks +2 if you are from TCS, INFY etc. :) ..You get the idea

Now I am not going to bore you to death about how you need to differentiate yourself and whether to retake GMAT or not and all other standard questions.. This post is to highlight the struggle that myself and several of my future classmates are currently going through to come up with funds for the MBA.

Your options for funding -
1) Personal savings (most of us have none)
2) Scholarship (if you got full ride, please stop reading)
3) Loan from BSchool (count yourself lucky)
4) Prodigy Finance (not all schools are covered) but still a very real option.
5) Education Loan from India (capped at 20L)
6) Loan from local bank in the country you are going to study

Here I want to share our collective experiences wrt option 5 & 6.

First of all, it is very much possible to obtain an educational loan from an Indian Bank for an amount of more than 20L. The catch is, you need to show ~ 120% collateral. It has been done before and I am hoping I will get the approval in next few days. Not all banks will do it, however SBI and Bank of India are the ones that I know of.
Please note this will be a very lengthy process as any amount more than 20L needs to go to Exec Director or MD for approval.

Next, let’s talk about option 6. To make this work, you need either a local co-signor or an International Bank Guarantee (IBG) from an Indian Bank.

You would need the local bank to send you the text of International bank guarantee. The text will then have to be vetted by the legal team of the Indian Bank. If they approve, then the Bank will approach RBI on your behalf to obtain their permission and FEMA exemption. The IBG basically states that, should you fail to pay the money to the local bank, the Indian bank is liable to pay the amount on your behalf. Again, you would need ~120% collateral.

The whole process takes around 1.5 months, out of which RBI will take 1 month to provide the approval. Please know in advance, as of today, only HDFC bank and Central Bank will provide you with the IBG. SBI and IDBI Bank used to do it, but rules have changed recently. Others would have not even heard of it. The biggest challenge with this approach is that IBG is hugely unpopular with desi banks as they don’t get to make the money. At most they can charge you a % of the total amount which is much less than the interest you would owe them for an educational loan.

I wasted 6 months with SBI and IDBI so please don't bother talking to them and asking for BG. You WON'T get it.

I hope, when the time comes, you will know what to do and where to go. I will update if I get any new information.

All the best for your Yam Bee Yay!!!

_________________

Dhiraj Jha
http://www.globalmba-gyan.com
MBA 2011 - SDA Bocconi School of Management (Milan, Italy)
Global Account Management, Samsung Electronics Headquarters (Korea)

Kudos [?]: 17 [0], given: 1

Manager
Manager
avatar
Joined: 04 Jul 2013
Posts: 92

Kudos [?]: 37 [0], given: 30

Location: Australia
Concentration: Strategy, Technology
GMAT 1: 690 Q47 V38
GPA: 3.2
WE: Information Technology (Consulting)
Reviews Badge
Re: Indian Applicants please read this.. [#permalink]

Show Tags

New post 20 Nov 2014, 18:55
dheeraj7890 wrote:
Hi,

I definitely see your point about the profile as there are lots and lots of that in the MBA applicant pool.
But its not very difficult to differentiate yourself if you really have something to showcase in your profile.

I understand you are in the same pool, but there are lot of other things to your profile as well then just country and industry. Those are important pieces but still there is more to a profile :)

And regarding Loan options :
Something to add there, lot of universities offer Student Loans without a co-signor or any guarantee. Sometimes, its not for the full tuition (like covers only 70~80%), but there are options like that.
I myself got a loan without any co-signor, collateral or anything from an Italian bank for 70% tuition.

Cheers !
Dhiraj

ashkul123 wrote:
Hi Guys & Gals

It sucks to be an Indian applicant and sucks+1 if you are an IT male applicant and sucks +2 if you are from TCS, INFY etc. :) ..You get the idea

Now I am not going to bore you to death about how you need to differentiate yourself and whether to retake GMAT or not and all other standard questions.. This post is to highlight the struggle that myself and several of my future classmates are currently going through to come up with funds for the MBA.

Your options for funding -
1) Personal savings (most of us have none)
2) Scholarship (if you got full ride, please stop reading)
3) Loan from BSchool (count yourself lucky)
4) Prodigy Finance (not all schools are covered) but still a very real option.
5) Education Loan from India (capped at 20L)
6) Loan from local bank in the country you are going to study

Here I want to share our collective experiences wrt option 5 & 6.

First of all, it is very much possible to obtain an educational loan from an Indian Bank for an amount of more than 20L. The catch is, you need to show ~ 120% collateral. It has been done before and I am hoping I will get the approval in next few days. Not all banks will do it, however SBI and Bank of India are the ones that I know of.
Please note this will be a very lengthy process as any amount more than 20L needs to go to Exec Director or MD for approval.

Next, let’s talk about option 6. To make this work, you need either a local co-signor or an International Bank Guarantee (IBG) from an Indian Bank.

You would need the local bank to send you the text of International bank guarantee. The text will then have to be vetted by the legal team of the Indian Bank. If they approve, then the Bank will approach RBI on your behalf to obtain their permission and FEMA exemption. The IBG basically states that, should you fail to pay the money to the local bank, the Indian bank is liable to pay the amount on your behalf. Again, you would need ~120% collateral.

The whole process takes around 1.5 months, out of which RBI will take 1 month to provide the approval. Please know in advance, as of today, only HDFC bank and Central Bank will provide you with the IBG. SBI and IDBI Bank used to do it, but rules have changed recently. Others would have not even heard of it. The biggest challenge with this approach is that IBG is hugely unpopular with desi banks as they don’t get to make the money. At most they can charge you a % of the total amount which is much less than the interest you would owe them for an educational loan.

I wasted 6 months with SBI and IDBI so please don't bother talking to them and asking for BG. You WON'T get it.

I hope, when the time comes, you will know what to do and where to go. I will update if I get any new information.

All the best for your Yam Bee Yay!!!


The post was never intended to talk about the benefits of differentiating yourself etc as I have clearly mentioned. The utility of this post comes only after you have secured an admission. I would assume, someone with an offer would know the how and the why.

Pages have been written on that and I am in no mood to beat a dead snake.
_________________

Take care to get what you like or you will be forced to like what you get!!

Kudos [?]: 37 [0], given: 30

Manager
Manager
avatar
Status: MBA Mentor
Joined: 28 Oct 2014
Posts: 67

Kudos [?]: 17 [0], given: 1

Location: Korea, Republic of
Concentration: Strategy, Other
Schools: SDA Bocconi - Class of 2011
GMAT 1: 700 Q50 V34
GPA: 3.21
WE: Analyst (Telecommunications)
Re: Indian Applicants please read this.. [#permalink]

Show Tags

New post 21 Nov 2014, 00:04
Just wanted to clarify a bit on the loan side !!!



ashkul123 wrote:
dheeraj7890 wrote:
Hi,

I definitely see your point about the profile as there are lots and lots of that in the MBA applicant pool.
But its not very difficult to differentiate yourself if you really have something to showcase in your profile.

I understand you are in the same pool, but there are lot of other things to your profile as well then just country and industry. Those are important pieces but still there is more to a profile :)

And regarding Loan options :
Something to add there, lot of universities offer Student Loans without a co-signor or any guarantee. Sometimes, its not for the full tuition (like covers only 70~80%), but there are options like that.
I myself got a loan without any co-signor, collateral or anything from an Italian bank for 70% tuition.

Cheers !
Dhiraj

ashkul123 wrote:
Hi Guys & Gals

It sucks to be an Indian applicant and sucks+1 if you are an IT male applicant and sucks +2 if you are from TCS, INFY etc. :) ..You get the idea

Now I am not going to bore you to death about how you need to differentiate yourself and whether to retake GMAT or not and all other standard questions.. This post is to highlight the struggle that myself and several of my future classmates are currently going through to come up with funds for the MBA.

Your options for funding -
1) Personal savings (most of us have none)
2) Scholarship (if you got full ride, please stop reading)
3) Loan from BSchool (count yourself lucky)
4) Prodigy Finance (not all schools are covered) but still a very real option.
5) Education Loan from India (capped at 20L)
6) Loan from local bank in the country you are going to study

Here I want to share our collective experiences wrt option 5 & 6.

First of all, it is very much possible to obtain an educational loan from an Indian Bank for an amount of more than 20L. The catch is, you need to show ~ 120% collateral. It has been done before and I am hoping I will get the approval in next few days. Not all banks will do it, however SBI and Bank of India are the ones that I know of.
Please note this will be a very lengthy process as any amount more than 20L needs to go to Exec Director or MD for approval.

Next, let’s talk about option 6. To make this work, you need either a local co-signor or an International Bank Guarantee (IBG) from an Indian Bank.

You would need the local bank to send you the text of International bank guarantee. The text will then have to be vetted by the legal team of the Indian Bank. If they approve, then the Bank will approach RBI on your behalf to obtain their permission and FEMA exemption. The IBG basically states that, should you fail to pay the money to the local bank, the Indian bank is liable to pay the amount on your behalf. Again, you would need ~120% collateral.

The whole process takes around 1.5 months, out of which RBI will take 1 month to provide the approval. Please know in advance, as of today, only HDFC bank and Central Bank will provide you with the IBG. SBI and IDBI Bank used to do it, but rules have changed recently. Others would have not even heard of it. The biggest challenge with this approach is that IBG is hugely unpopular with desi banks as they don’t get to make the money. At most they can charge you a % of the total amount which is much less than the interest you would owe them for an educational loan.

I wasted 6 months with SBI and IDBI so please don't bother talking to them and asking for BG. You WON'T get it.

I hope, when the time comes, you will know what to do and where to go. I will update if I get any new information.

All the best for your Yam Bee Yay!!!


The post was never intended to talk about the benefits of differentiating yourself etc as I have clearly mentioned. The utility of this post comes only after you have secured an admission. I would assume, someone with an offer would know the how and the why.

Pages have been written on that and I am in no mood to beat a dead snake.

_________________

Dhiraj Jha
http://www.globalmba-gyan.com
MBA 2011 - SDA Bocconi School of Management (Milan, Italy)
Global Account Management, Samsung Electronics Headquarters (Korea)

Kudos [?]: 17 [0], given: 1

Current Student
User avatar
Joined: 25 Sep 2012
Posts: 291

Kudos [?]: 162 [0], given: 242

Location: India
Concentration: Strategy, Marketing
GMAT 1: 660 Q49 V31
GMAT 2: 680 Q48 V34
GMAT ToolKit User Reviews Badge
Re: Indian Applicants please read this.. [#permalink]

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New post 17 Feb 2015, 13:57
Although short, the post is really helpful. I would like to know more insights about the private bank loans in US.
It would be more helpful if you could put a more relevant title for your post :)

Kudos [?]: 162 [0], given: 242

1 KUDOS received
Manager
Manager
avatar
Joined: 22 Feb 2015
Posts: 81

Kudos [?]: 8 [1] , given: 9

Re: Indian Applicants please read this.. [#permalink]

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New post 22 Feb 2015, 09:49
1
This post received
KUDOS
Hello! I am just about starting my preparation for GMAT and coming across this post is not exactly the best of inspirations that I was looking for:(.

Kudos [?]: 8 [1] , given: 9

1 KUDOS received
Manager
Manager
avatar
Joined: 04 Jul 2013
Posts: 92

Kudos [?]: 37 [1] , given: 30

Location: Australia
Concentration: Strategy, Technology
GMAT 1: 690 Q47 V38
GPA: 3.2
WE: Information Technology (Consulting)
Reviews Badge
Re: Indian Applicants please read this.. [#permalink]

Show Tags

New post 22 Feb 2015, 23:21
1
This post received
KUDOS
hmm .. Look buddy to be honest when I wrote it, I had not intention to inspire or depress someone in their application journey. I just wanted to share my struggles so that others can get some idea from it.

To be frank , if you are an Indian applicant and are not 1) uber rich 2) have an uber rich uncle in Africa who is willing to make you his heir 3) have been at on-site for years now and thus have accumulated a big chunk of money then you should seriously start thinking about your mba funding.

You have no idea how shitty it can get and I am speaking from experience.

Start saving now or start looking at avenues of generating collateral because when the time comes and you are sitting with an admit, the last thing you wanna do is tell the school that you can't afford it.

Sorry to have depressed you even more :)
_________________

Take care to get what you like or you will be forced to like what you get!!

Kudos [?]: 37 [1] , given: 30

Manager
Manager
avatar
Joined: 22 Feb 2015
Posts: 81

Kudos [?]: 8 [0], given: 9

Re: Indian Applicants please read this.. [#permalink]

Show Tags

New post 23 Feb 2015, 03:47
Thanks ashkul123 for the reality check; something I will keep in mind. Right now, guess I will just totally focus on my prep.

Kudos [?]: 8 [0], given: 9

1 KUDOS received
Intern
Intern
avatar
B
Joined: 21 Feb 2017
Posts: 2

Kudos [?]: 1 [1] , given: 0

Location: India
GMAT 1: 670 Q49 V31
GPA: 3.82
Re: Indian Applicants please read this.. [#permalink]

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New post 21 Mar 2017, 23:41
1
This post received
KUDOS
SBI HAS LAUNCHED A NEW SCHEME CALLED GLOBAL ED VANTAGE. GO THROUGH IT. I THINK IT NEEDS COLLATARL TOO BUT ITS WORTH IT. RATEURS IS 10.5-11.2

OTHER OPTION IS TO TARGET PRODIGY FINANCED INSTITUTES..........I DID THE SAME .

REGARDS
HOPE U ACHEIVE YOUR GOALS

Kudos [?]: 1 [1] , given: 0

Intern
Intern
avatar
B
Joined: 13 Jun 2017
Posts: 10

Kudos [?]: 10 [0], given: 0

Location: India
GMAT 1: 730 Q51 V39
GPA: 3.6
Re: Indian Applicants please read this.. [#permalink]

Show Tags

New post 13 Jun 2017, 10:23
Thanks for sharing. this post is very helpful. This is a very useful community indeed.

Kudos [?]: 10 [0], given: 0

Manager
Manager
avatar
B
Joined: 11 Feb 2016
Posts: 57

Kudos [?]: 8 [0], given: 129

Schools: AGSM '19
GMAT 1: 600 Q47 V25
GPA: 3.6
Reviews Badge
Re: Indian Applicants please read this.. [#permalink]

Show Tags

New post 14 Jun 2017, 00:00
A lot of banks have special loans schemes these days for students aspiring to study abroad. The paperwork is a bit lesser than the conventional loans and the process is a tad shorter but I agree with the other hassles posted by fellow members. Its a big pain to go through this process and definitely takes a mental toll even before you would have stepped onto the campus.

On the hindsight, you will know the gravity of the situation and will value this money highly helping you push yourselves during your MBA. Maybe who knows you get that coveted fantastic job from the campus which helps you pay that loan amount in a jiffy!

Kudos [?]: 8 [0], given: 129

Senior Manager
Senior Manager
User avatar
B
Joined: 08 Jun 2015
Posts: 269

Kudos [?]: 14 [0], given: 91

Location: India
GMAT 1: 640 Q48 V29
Re: Indian Applicants please read this.. [#permalink]

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New post 23 Jun 2017, 07:47
Useful post .... thanks for sharing your insights :)
_________________

" The few , the fearless "

Kudos [?]: 14 [0], given: 91

Re: Indian Applicants please read this..   [#permalink] 23 Jun 2017, 07:47
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