Education Loan For MBA in India

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It's that time of the year when lakhs of students appear in various entrance exams of institutes that offer MBA programs. Since there can be many benefits of getting an MBA as it trains you with some important skills that you can apply in the business world as well as in the professional world. Being an MBA holder not only offers a better job prospect to you with a broad range of opportunities but a higher salary than you would otherwise receive.

But even pursuing MBA just from any random institute doesn't give much opportunity, there are some top institutes/colleges in India that offer premium MBA courses and those are not cheap. MBA colleges in India demand a high investment, which many students and parents are unable to afford from their own pockets. In such a situation, an education loan emerges as a viable option for those students and parents. 

Types of education loan

There are two types of education loans that lenders provide as students loan for MBA in India

  • Collateral education loans: Collateral education loans are granted on the basis of collateral security. Here, students are required to pledge the collateral with the lender in order to get an education loan. The accepted collateral as security includes immovable property (house, flat, non-agricultural land with defined boundaries), and liquid security (fixed deposits, term insurance policies, Government bonds).

  • Non-collateral education loans: Non-collateral education loans are granted on the basis of a student's past educational records and their co-applicant’s financial profile. In this, students need not pledge any collateral security in order to be eligible for a non-collateral education loan. Therefore, students are required to pay close attention to the eligibility parameters set by the financial institutions.

These are the two types of education loans in India. If you happen to look for a student loan for MBA in India, connect with our team at Vidyaloans to seek professional guidance for education loans in India. 

Why Take an Education Loan for an MBA in India?

An education loan is financial assistance given by banks and other financial institutions to a student to continue his/her education. The loan is given to those students who have already secured admission to an MBA course. Here's why taking an MBA education loan can be helpful:

  • Covers almost 100% expenses: Education loan generally covers almost all the expenses incurred by students during their MBA education like hostel fee/ rent, books, etc along with the fee.
  • Extends your pocket: Education loans help students complete their MBA courses that they may not have been able to afford on their own.
  • Widens your option: With funds in hand, students can choose whichever institute they want to go to.

MBA Course Fee for IIMs and Top B-Schools in India

The requirement of a student loan for MBA in India becomes explicit once we take a look at the MBA course fee for some of the leading B-schools in India. Without access to an MBA education loan, it will be almost impossible for most of the candidates to arrange such a high amount.


Course Fee (Approx. in Rs. lakhs)

Indian Institute of Management (IIM), Ahmedabad


Indian Institute of Management (IIM), Bangalore


Indian Institute of Management (IIM), Calcutta


SP Jain Institute of Management Studies and Research (SPJIMR), Mumbai


Narsee Monjee Institute of Management Studies (NMIMS), Mumbai


Management Development Institute (MDI), Gurgaon


Course fees are subject to change at the discretion of the Institute. 

These are some of the leading B-schools in India that offer MBA courses with an average tuition fee of around 20 lakhs. Students joining these B-schools also have to take care of additional costs that incur like hostel fees, purchase of books, etc. The tuition fee of an MBA from some less expensive but decent B-schools can also easily cross the 10 lakh mark.

Best Education Loan Schemes for MBA in India


Max. Loan Amount

State Bank of India


Punjab National Bank


Canara Bank





No Limit

Axis Bank


Although there are multiple Government and private lenders that offer an education loan for an MBA course, SBI deserves an honorable mention for its overall tailor-made scheme for top B-schools in India. At first glance, it may appear as ICICI, Axis, and Avanse have more to offer but their interest rates are also quite high with SBI's rate of interest ranging between 7-9.5%, ICICI, Axis, and Avanse have interest rates starting from 11.5%. 

SBI education loan for MBA in India

SBI has a scheme that is especially made for meritorious Indian students who have secured a seat to Professional/Technical courses in Select Premier Institutions through the Entrance Test/Selection process. This scheme is the SBI scholar loans scheme under that SBI has made four lists for institutions i.e AA list, A list, B list, and C list. If you get admitted, you can avail up to 40 lakhs through SBI education loan for MBA in India without collateral security. 

  • The AA list includes some of the top IIMs (Ahmedabad, Bangalore, Calcutta, Indore, etc.) and there are a total of 13 institutes in the AA list for which you can get a 40 lakh SBI collateral-free education loan.
  • List A has a total of 64 institutes including IIMs, IITs, BITS, etc for which you can get 20 lakhs SBI non-collateralized education loan and 30 lakhs collateralized education loan.
  • For 50 institutes in List B, you can get 20 lakhs through SBI student loan without collateral
  • And there are a total of 92 institutions on List C, SBI collateral-free education loan limit for List C institutions is just 7.5 lakhs, but with collateral, you are eligible to get up to 30 lakhs.

If you are looking for a non-collateral education loan to fund your MBA program of up to 7.5 lakhs, then we recommend you to connect with our team at Vidyaloans. Our processing officer will assist you with the entire education loan process.

About the organization: VidyaLoans is an organization which helps Indian students in India to secure a non-collateral loan from Government banks up to 7.5 Lakhs. We have a dedicated team of professionals who assist students with queries and guide them throughout the loan process. Our Team at Vidyaloans is committed to sanction the best loan option suiting the applicant's profile and needs, in a stipulated time frame.