Simple Steps to Finance your MBA Dream!
This is going to be one of the most useful articles in the recent times as this article talks about financing the ambition of most Indian graduates. Pursuing an MBA degree from the renowned institutions of the country is still a distant dream for many graduates in India and finance being the primary reason, we are going to help the Indian candidates understand how educational loans works and the other important factors involved.
Educational loans in certain instances really become the lender of the last resort for the people who belong to the low and middle-class sections of the society. Many on the other hand give up the idea of education fearing that they might get caught in the vicious circle of debt in case if they are going for a bank loan. Either way, the thought process of the people cannot be blamed.
Here we are helping you understand the process involved in seeking an educational loan. Before looking for a bank loan, there are a few things that you have to keep in mind. Analysing these factors will keep you safe without falling into financial crunch in the process of doing your degree.
Things to take note of:
The Rate of Interest:This is the first thing that any borrower has to look into. In fact more than the principle it is the interest rate that matters a lot as far as loans are concerned. You should also take a note of the type of interest that is applied to the principal amount. It has to one of these four interest types, simple, compound, fixed or fluctuating. The rate depends on the market trends which can highly influence the monthly due that you are going to pay the banker.
Down Payment:Down payment is the amount that you will have to forgo as a part of interest the very first you are receiving the loan amount.
Loan charges:The banker is going to charge the borrower with processing fee and other procedural payments that the borrower has to make before receiving the loan.
Loan Tenure:Loan tenure is the period for which the loan is allocated. Most of the times people opt for loans that have longer repayment term. But the truth is that short-term loans work better than the long-term loans. All you have to do is a simple calculation of the money that you will be losing over the period of the loan tenure.
Security:Sometimes the banker may demand some kind of security to make sure his money is safe with you and that you will not dare to make default in your payment. Have a look at it. Collateral might not be affordable at times.
Loan Procedure for MBA:
- Once you have decided the management course and the school that you are going to join in, you will by then be probably aware of the fees amount that is expected out of you.
- So the first step is to decide whether you are going for borrow the entire amount or if you are going for a partial borrowing.
- All consider the other costs that you might have to incur from different perspectives. Residential, educational and loan formalities have to be met at the same time.
- Decide on issues like guarantee and collateral. Then apply for the educational loan from the financial institutions that best fits your position. Do not forget to follow the above-stated points.
- Get a copy of all the necessary documents, your certificates, and mark lists.
- The loan processing time differs from one bank to the other so look for the time limit that is comfortable before applying for the loan.