IIMs are the ultimate destination for management education in India. They have been able to consistently attract top students from all across the country. The criteria and the sheer competition to get into these premium institutes is in itself proof of the students’ capacity to stand out from the remaining 3600+ MBA institutes in India. It’s no surprise that many global brands compete hard to attract talent from these institutes.
However, the cost of education from these premium institutes are pretty steep even for a student from a higher income household. On an average, the total fees including the hostel and Mess fee adds up to an average of 23L in the top IIM’s. That means shelling out 3-4 lakhs on fees and other associated costs every semester.
The good news is that banks are competing to offer their best, custom made credit (education loan) products and services to these premium students at IIMs. This often means offering education loans at the cheapest available rates, with no collateral requirement.
Key Features of Loans offered to IIM Students
- The loans offered to IIT and IIM students goes all the way up to 40L
- Like every education loan, there’s a moratorium period on every loan, which is typically ranges from 6-12 months post-graduation
- All the loans are zero collateral loans – no need to pledge any physical assets like land, homes, gold, etc. Your admission to IIM in itself if proof that you’ll be able to repay the loan
- Banks offer students to sign up for their educational loan with and without a co-borrower. However, in most cases, banks do require a co-borrower for approving the loans.
- The lenders usually do not apply any pre-payment charges on such loans. And the borrowers get a payback period of 15 years.
- Additionally, in case of education loans offered to IIM graduates, banks usually offer a very low or zero margin, which means that the share of educational fees that has to be paid by the student directly is minimal. Banks usually offer complete coverage of tuition fees, mess, hostel, miscellaneous etc.
- You can avail tax benefits on the EMI paid under Section 80E of the Income-tax Act, 1961.
- 0.5% rate concession on education loans for women
Cynapse brings together the best public sector and private sector banks that you trust under a single roof to offer their best offers to students from IIM’s and IITs. Cynapse pre-approves all loans it offers. If you secure an admission into these IIMs, our platform pre-approves your loans. Check out www.cynapse.co.in to know more or write to firstname.lastname@example.org for clarifying your queries