Career acceleration is the purpose of an MBA. But it comes with a price tag. The average cost for an MBA in India is about ₹8-25 lakh, while an overseas degree will cost upwards of $100,000. Financing your MBA is almost important, and here are some ways of funding your studies.
1. Education Loans
Loans are commonly taken to finance an MBA. Education loans are provided by banks and NBFCs with flexible repayment options.
- Public Sector Banks: SBI, Bank of Baroda, and Punjab National Bank offer education loans at a lower interest rate. SBI Scholar Loan scheme offers loans under the amount of ₹20 lakh at an interest of 8.15% per annum.
- Private Banks: ICICI, HDFC, and Axis banks offer educational loans with interest rates between 9-12%.
- NBFCs: Credila, Avanse, and InCred cater to students without collateral. In this case, the interest rate may vary from 11-14%.
- International loans: Prodigy Finance and MPOWER Financing assist students who are studying abroad.
- Repayment: Most banks would generally offer a moratorium, and repayment will commence six months to a maximum of one year’s completion of the course.
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2. Scholarships
Most scholarships render assistance in waiving off some of the financial burdens. Several institutions and organizations offer scholarships on various bases, such as merit, need, or diversity.
Institution-Specific Scholarships
- ISB Scholarships: Merit-based and need-based scholarships up to ₹5 lakh are provided by ISB.
- IIM Scholarships: IIMs provide merit-cum-need-based scholarships ranging from ₹1 to ₹10 lakh.
- XLRI Scholarships: Several merit-based and diversity scholarships are available.
Government Scholarships
- National Means Cum Merit Scholarship: For excellent students.
- Central Sector Scheme of Scholarships: For the weaker sections of society.
Corporate & External Scholarships
- OP Jindal Engineering & Management Scholarship: For management students worth up to ₹1.5 lakh.
- Aditya Birla Scholarship: Covers tuition fees for the top B-schools.
- Tata Trust Scholarships: Offer financial assistance to meritorious students.
Therefore, by their very nature, an application for a scholarship should give rise to advance preparation. Most institutions consider academic records, leadership skills, and financial need during selection. Deadlines for scholarships differ; it is wiser to apply as soon as possible.
3. Fellowships
All the fellowships provide monetary support and networking opportunities; some also demand in return work obligations.
- IIM Fellowships: Research-based with full tuition waivers and stipends.
- ISB Research Fellow Program: For those pursuing an academic or consulting career.
- Narotam Sekhsaria Fellowship: This is an interest-free loan scholarship awarded to outstanding students.
- Stanford Reliance Dhirubhai Fellowship: This pays 80% of tuition for Indian students studying at Stanford GSB.
Fellowships are competitive. Distinguished records and an impressive application are vital.
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4. Part-Time Jobs and Assistantships
Some universities offer students part-time jobs. Assistantships in teaching and research are often awarded to fund their studies.
- Teaching Assistantships: This is offered by various institutes in India like IIMs, ISB, IITs, etc.
- Part-Time On-Campus Job: Students can work up to 20 hours a week on-campus in various countries.
- Internships: Having paid internships while doing their MBA will help cover living expenses.
Work and studies can be tough to balance. Good time management makes the difference.
5. Employer Sponsorships
Programs of some employers cover the cost of an MBA. Employees are required to work for the company for a prescribed number of years in return.
- Companies Offering Sponsorships: TCS, Infosys, Deloitte, and Goldman Sachs.
- Eligibility: Usually, depends on tenure and performance.
- Bond Period: Generally between 2-5 years after MBA.
If you’re planning to avail of employer sponsorship, it’s advisable to start talking to HR to discuss your terms.
6. Crowdfunding and Personal Savings
In a way, students can raise funds for their schooling through crowdfunding platforms.
- Popular Platforms: Milaap, Ketto, GoFundMe.
- Tips for Success: A compelling story with a clear financial breakdown increases the chances of success.
The use of personal savings also comes into play. Planning finances early helps to reduce reliance on loans.
Conclusion – How to Finance Your MBA
An MBA is undoubtedly very expensive but can always be made possible. Loans, scholarships, and fellowships available, along with employer sponsorships, should all be explored. These options should be weighed before arriving at a decision. An ingenious plan will minimize financial hassle and optimize ROI. Start early and select the best funding method for your MBA. With planning, financing your MBA with ease will be a reality.
