Do you aspire to make your billion-dollar idea successful?

You would need a sound understanding of every business concept to turn the idea into reality. This will help to set up a start-up that goes on to become the best in the world. If you are confident about the path-breaking solutions you have come up with, then get an MBA degree and begin your business venture. Once you have MBA essentials under your stride, you will be able to sell that idea of yours to investors. There is only one thing between you and your dream then: the funding you need to learn business administration. Lenders offer a simple solution for that—education loans. These loans cover all of your MBA education expenses. But before you get a study loan, understand the factors that decide your education loan eligibility for it.

1. Citizenship and age

A student has to be a citizen of India to get a study loan. He/she has to be above 18 years of age, or in other words, be an adult legally to borrow money for higher studies.

2. Academic record

A student’s academic record decides whether and how much education loan he/she is eligible to get. A student has to maintain a strong academic record to improve their chances of getting an education loan. He/she has to keep similar performance in extra-curricular activities as well.

3. Educational institutions

The MBA educational institution a student gains admission into also plays an important role in their eligibility to get a study loan. Getting admitted into a B-school that is among the best in the world will improve their chances of getting a financer.

4. Work experience

Students often opt to work for a few years before appearing for MBA entrance exams. This is a good practice. When a student works for 2 or 3 years and then pursues an MBA degree, he/she is in a better position to get funds for higher education. Lenders often reduce the interest rate on education loans for such students. So, get a few years of working experience under your belt.

5. Co-borrower’s creditworthiness

You may also need a co-borrower for your education loan for MBA studies. A co-borrower can be either of your parents, legal guardian, siblings, or spouse. They need to possess good financial status and have a decent credit score to help you get a desirable education loan.

6. Collateral

In some cases, students decide to provide their family assets as security against the education loan they borrow. In such cases, a lender verifies the authenticity of their assets and their claim on those assets before giving them education loans. That security is called collateral. It plays an important role in how much of an education loan a student can get and the interest rate that will be charged on it.

So, these are the eligibility factors for education loan for MBA students. We hope that now you are armed with fine knowledge about the eligibility factors that govern a student’s chance of getting an education loan. Have a nice day!