Query: Sir |
please tell us in details, about the availability of getting a bank loan for pursuing MBA from a good college.Particularly, about their terms ,are we made to keep collateral? and anything more, that we would be worth knowing in this regard?
Answer: Most good colleges have tie up with some bank which favourably grants loan to the students who take admission in the college. Even if a reputed college does not have a tie up, any bank would readily grant an education to a student after he presents demand letter from the college, moreso these days when the government has pressed banks not to refuse educational loans even for not so worthy courses. Education loans can be availed even in the absence of a collateral as long as the bank is assured that the person would get a job after the completion of course and hence would be able to pay back, which in case of MBA from a reputed college is not a problem.
The bank gives you 6 months time from the completion of your degree to start repaying the loan in installments i.e. no installments for the next 6 months. From the 7th month you start paying equal installments and the loan has to be serviced (repaid completely) in a fixed duration, which is usually 7 years but may vary from bank to bank.