|
Costs involved in undertaking an MBA program can be broadly classified under two major heads:
|
| |
| Pre-Admission Costs: |
|
Pre-admission cost is generally the cost of the forms which is normally between Rs. 800- 1500 per institute. Some institutes such as K.J.Somaiya charge some fee for GD/PI also.
|
| |
| Admission and Tuition Costs |
|
It generally includes admission cost, tuition fee, cost of the study material, hostel charges and other miscellaneous charges.
|
| |
Pre-Admission costs comprise Rs. 20,000-25,000 for test prep classroom coaching and Rs. 12,000 - 15,000 for applications to B-schools.
|
|
Admission and tuition costs are around Rs. 4-12 Lacs for privately run schools while it is a manageable Rs. 20,000-1,00,000 for university affiliated departments.
|
|
| Apart from this, you have to keep aside another Rs. 70,000 to Rs. 1.25 Lacs for living expenses during the two years of study at B-school. |
|
| But you should not worry too much about these costs; most good institutes help arrange educational loans. Also there are banks that offer loans at attractive and flexible terms to students admitted to good B-schools. |
|
| Such loans cover virtually all costs associated with the program i.e. academic fees, books, hostel expenses (food and rent), computer purchase and study tours. In short, everything that is a part of your course. Towards this end, the institution authorities provide to the bank a detailed Schedule of Expenditure required for undergoing the course and, accordingly, the bank makes the requisite payment direct to the institution as per the timetable. The expenses paid by you before you actually get the loan are also paid by the bank to you as part of the total loan sanctioned. |
|
| The rate of interest usually charged on such loans, varies from bank to bank; it is usually around 11.5% per annum on a reducing balance basis i.e. you will pay interest only on : The total loan amount minus the repayment done by you so far. For details, get in touch with any public/ private sector bank. In case you could not make into the top 50 private institutions and have financial pressure you should opt for a government affiliated university department. |
| |
| Upto Rs 4 lacs |
Nil |
| Above Rs. 4 lacs : Studies in India |
5% |
| Studies Abroad |
15% |
| |
|
Scholarship/ assistantship to be included in margin. |
| Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis. |
| |
| Upto Rs 4 lacs |
Co-obligation of parents.
No security |
| Above Rs.4 lacs and upto Rs7.5 lacs |
Co-obligation of parents together with collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, waive third party guarantee if satisfied with the net-worth / means of parent/s who would be executing the document as "joint borrower". |
| Above Rs.7.5 lacs |
Co-obligation of parents together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments |
|
