Pursuing an MBA degree for generating better and more successful career opportunities is a dream cherished by countless youngsters across the country. However, only a small percentage of such aspiring and deserving candidates are able to fulfill their dream mainly due to the lack of adequate finances. While most banks and financial institutions offer students loans to aspiring candidates for completing MBA in India, these too are becoming increasingly expensive. Given below are the some facts about the expensive costs of student loans for MBA.
- Contrary to the popular belief, the interest rates for student loans availed by aspiring MBA candidates vary between the lending institutions. This means that candidates have the option of getting a slightly lower cost loan if they care to do enough research to find such lending institutions.
- The choice of the college plays a vital role in deciding the interest rate for the student loans. This means that candidates opting for top MBA colleges in Pune are more likely to get loans at lower interest rates than those opting for colleges with lesser ranking.
- Most aspiring MBA candidates are not aware of the fact that they are not required to actually start repaying the loan at up to 1 year after the completion of their course. The increased rates are often a means of covering up for the loss for this extended period till.
- Even after starting their career, MBA graduates repaying student loans can get tax–exemption on the loan amount. Since the best MBA colleges in Bangalore offering decent placement options to students, the lending institutions take this vital fact into consideration while accepting the loan applications of students.
Most banks have stringent rules about accepting the loan applications of only the most deserving candidates as proven by their solid academic records. This is because the banks consider such investing in such candidates a safe option and believe them capable of handling the expensive cost.