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Best Education Loans for Admission to Top Management Institutes in India


  • Want to pursue management studies in India but don’t have the money to do so?
  • Get an estimate of the study cost and choose the best loan at affordable interest rates

It takes a lot to study in top management institutes in India. Not only you need to outsmart thousands of applicants with your skills and aptitude but you also need a fat pocket to do so. And if you are unable to do so, the opportunity will be lost. The management course expenses are quite high and difficult to meet up with. Even the cost of the most affordable MBA program can be in lakhs. And, if you want to study at any of the Indian Institute of Managements (IIMs), the fee can be as high as INR 13 to 23 lakh. Looking at the steep amount, a lot of talented but from a middle class and lower strata of society may find it hard to study in such prestigious institutions unless there’s some backing of education loans. Keeping that in mind, banks are ready with education loans for students wanting to pursue management degrees. So, we will first check the fee of top management institutes before focusing on banks that provide education loans.

Fee Structure of Top Management Courses in India

List of Top Banks for Admission in Management Institutes

The below table shows the maximum loan amount and interest rates of different banks. Take a look.

BanksLoan AmountInterest Rate (In Per Annum)
Bank of BarodaINR 7.5-80 Lakh6.85% - 9.95%
State Bank of India (SBI)INR 7.5-40 Lakh6.90% - 9.30%
Punjab National Bank (PNB)Need-Based6.90% - 9.55%
Axis BankINR 7.5-40 Lakh13.70% - 15.20%
Union Bank of IndiaINR 30 Lakh7.20% - 10.45%
Canara BankINR 20-40 Lakh7.40% - 9.40%
Central Bank of IndiaINR 10-30 Lakh6.85% - 9.00%
Bank of IndiaINR 10-20 Lakh9.05% - 9.85%

Margin Money on Education Loans

Banks, however, may not finance fully to the extent of the expenses you need to make for such studies. While some could finance 100%, others will finance around 85%-95% of the cost of the study. So, while applying for the education loan, do check the margin requirement and prepare yourself accordingly.

Will Banks Ask for Collateral?

A lot of them do when the loan requirement exceeds 7.5 lakh. But there are banks like Axis Bank that provide upto 40 lakh without collateral. The collaterals can be a fixed deposit, life insurance, residential property and non-agricultural land. Banks ask for collaterals just to secure their loan in case you fail to repay the loan dues. Since the job prospects at IIMs are immense, banks may not ask for the collateral. If that remains the case, it will be good for you as that will save your time which otherwise would be consumed in arranging the collateral and waiting for the nod of the lender.

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How to Apply for Education Loans?

To apply for the loan, students need to visit the bank branch and follow the below steps.

  1. Fill up the loan application form
  2. Submit the form with KYC & income proof
  3. Provide student academic proofs and admission letter
  4. Pay the processing fee if required

The loan would be disbursed to the institution directly so that the student fees can’t be delayed. You can pay for your education loan in equated monthly installments. Using the automated payment service ECS or offline post-dated cheque, you can pay the EMI. As per the Income Tax Act (ITA) of 80E, 1961, you can later claim the tax benefits on your education loan.

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