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“How can I fund my MBA” is a question that arises in many students’ minds, especially the ones who come from a more humble background. There is no doubt that an MBA is an extremely sought-after course that one can go for in the field of business and finance. But as it is said, nothing good comes without a price tag. The same is true for a Master's in Business Administration degree
The fee structure plays a very important role in deciding what college you will pursue your MBA from.
How should I arrange my MBA fee?
Generally, the MBA courses and fees charged by top institutions are much higher as compared to mediocre institutes. The fee structure ranges from INR 20,000- 40 lakhs. The low-end fee is demanded by mediocre institutions while the high-end fee is charged by the top institutes like IIMs and ISB.
Let’s look at the fee structure of some of the top MBA colleges in India
Top 3 MBA colleges (Other than IIMs)
XLRI Jamshedpur: Xavier School of Management
SIBM Pune: Symbiosis Institute Of Business Management
SPJIMR Mumbai: SP Jain Institute of Management & Research
Top 3 IIMs
IIM Ahmedabad: Indian Institute of Management
IIM Calcutta: Indian Institute of Management
IIM Bangalore: Indian Institute of Management
How to fund MBA in India?
Getting a Master’s in Business Administration that holds value can be heavy on your pocket; however, obtaining an MBA from a good B-school will ensure that the investment is outweighed by the returns. If you think your financial situation right now is holding you back from getting a good college, there are ways by which you can make your MBA more affordable. Take a look:
1. Try to get a scholarship
Do you often wonder, “Can I do my MBA free of cost?” the answer thankfully is yes! Scholarships are the best way to go through your MBA. To make their colleges more inclusive and to garner the top talent, many B schools give scholarships based on performance in Undergraduate courses or the percentile scored in the MBA Entrance exam, or both. Other than the colleges/ institutes like IIM Ahmedabad, IIM Bangalore, IIM Indore, IIM Lucknow, etc., scholarships are also offered by banks and industries like Aditya Birla Group scholarship, OP Jindal Engineering and Management Scholarships.
Things to keep in mind while choosing a scholarship-
- Whether the scholarship gives full or partial cover. Full coverage will make your MBA free of cost
- Some scholarships come with conditions like the minimum threshold for grades, maximum completion time, etc.
- Merit-based scholarships are generally based on the ‘first come first serve’ principle, so apply as soon as you can
- Need-based scholarships can also be applied for in which you will be selected based on your background and financial condition
- Many scholarships are applicable for only the first year of the course.
2. Go for an education loan
Public sector banks, Non-banking financial institutions( NBFCs), and Private sector banks provide a variety of loan options to choose from with varying terms & conditions like interest rates, EMIs, and Maturity period, Maximum loan amount, etc.
Interest rate options
The interest rates may differ from one bank to another. It is easier to get low-interest rate loans if you are doing MBA from IIMs and top colleges.
Public sector banks charge between 9-10% interest rates. NBFCs and private banks can charge interest up to 11.5%.
How to choose the right loan?
- Calculate the estimated fund requirement: This includes the course fee and living expenses. The future job prospects should be kept in mind along with the EMI option you choose to take
- Look for cheaper loan schemes: Make a conscious choice of the loan scheme. An MBA from a premier institute like IIM can get you a plan with lower interest rates.
- Choose the right bank/ MBA funding institute: Public and private sector banks along with NBFCs provide education loans with varied terms and conditions
- Prefer shorter repayment periods: The longer the loan repayment period is, the higher the interest charged. Hence, look out for a balance between the repayment period, EMI amount, and interest rates.
- Try to pay interest during the course period: Compounding interest is a big issue when it comes to loans. Try to cover the interest payments in the 2-year course duration.
3. Take up a part-time job
Taking a part-time job along with an MBA would help you cover your study costs. It can also help you form a good network which is a plus to getting good career opportunities.
Part-time jobs in the same domain you are pursuing your education like working in banks, consulting firms, etc that offer MBA programs or internships in a business or management-related field would help in gaining good work experience.
Try to get a teaching assistant or research assistant job in the same university where you are doing your MBA. This saves time and energy as the institute is your college as well as the workplace.
4. Employer sponsorship
Many companies provide tuition fee reimbursement benefits to their employees. If it's in the company policy, there may also be funds set aside for this purpose.
If not, you can put forward such a suggestion as it would be advantageous to the company to have their employee develop under a good MBA program. Not only would the company be able to derive more benefits from you, but it can also get a tax deduction of your tuition fees.
5. Choose Sunstone
If you are someone who wishes to unlock your dream job on your terms, then you can comfortably turn to Sunstone. At Sunstone we believe in your passion and to help you become financially independent, and for this, we have some unique offerings. We reward meritorious students, prolific sportspeople and other achievers. They have the chance to receive support to pursue their dreams without worrying about the financial burden. In addition to some unique payment plans, you can avail of loans with 0% interest.
Although MBA is an expensive course, it adds great value to your career and skill set. By following the above-mentioned tips to manage your finances and arranging funds, you can enrol into your dream college without creating a financial mess that is impossible to come out of.
Sunstone is a leading higher education services provider that works with academic institutions in upskilling students for employability. Sunstone offers career-oriented training interventions for undergraduate and postgraduate students at 40+ institutions across 30+ cities.
Sunstone’s training programs are industry-endorsed to enhance employability. These programs are designed for hybrid delivery with an unparalleled focus on soft skills and personality development. Sunstone’s focus is to provide students with a holistic educational experience.