How To Finance Your MBA

From scholarships to savings to summer internships, students have many means to fund their mba degree. In case of a financial crunch, an education loan is another option

- Teena Jain Kaushal 

India produces more than 300,000 management graduates every year, per AICTE data. Master of Business Administration MBA) is one of the most sought-after education programmes in the country. A degree from a good institute can land you a dream job with good perks and hefty packages, taking away a lot of future financial uncertainties. However, it comes at a cost.

The average fee for a two-year management programme from an IIM Indian Institute of Management) is around 25 lakh; it was 12 lakh in 2012-14. You or your parents may have savings, but given the galloping fees of B-schools, it might fall short. And if finances are not planned properly, the chances of getting an MBA degree from a coveted institute are slim. In such a situation, instead of emptying out your savings, it is prudent to look at other options to fund your management studies.

COURSE OF ACTION

An education loan is one option. It not only bridges the gap between your available savings and the actual amount required, but also provides funds at low interest rates, along with the benefit of tax deduction on interest under section 80E of the Income Tax Act. Also, there is a deferred payment facility available for students along with a concession of 0.5 per cent on interest for girls taking education loans.