How to fund your MBA education?

There is no questioning back on the fact that studying MBA is an expensive investment. But from the future prospects, the returns after studying MBA will be higher than the invested amount. The returns after becoming a business professional will actually pay off for the rest of your life.


Most of the MBA students today cob together a combination of funds from various sources, including scholarships, loans, employer sponsorship and more.

In case you are confused about how to fund your MBA program, then check the details given below:

Common types of MBA Funding:

MBA SCHOLARSHIPS

Candidates applying for an MBA Program have an option to apply for the academic scholarships offered by the University/Institute/College which recognize the talents of the candidates and are eager to nurture it further. The Academic Scholarships offered covers partial to full tuition. Some Institutes even offer living expenses and a nominal stipend. Though in many B-schools and Institutes, the scholarships offered is only for the first academic year.

Scholarships that these Institutes and Business schools offer are driven by two factors: academic excellence of the students i.e., performance in the Undergraduate degree, and Percentile scores of MBA Entrance Examinations or both.

Some common MBA Entrance exams taken into consideration for scholarships include- CAT, XAT, MAT, CMAT, GRE etc. In some cases there is a need-based scholarship that the candidate might require, then your profile will be evaluated based on your background, your financial situation, and what you can contribute to the MBA Institute.

Business Schools and Institutes usually publish their available scholarships online where the detailed structure can be referred on their official websites.

Other kinds of academic scholarships include Scholarships for International students and students with disabilities.

LOANS FOR MBA STUDENTS

There are banks that give loans to support your MBA studies at favorable interest rates. There are also student loan schemes, that are funded by the governmental organizations. Today, Some banks also have their tie-ups with some of the Institutes and B-schools. The loans offered to the students by these banks are at a special rate of interest which is normally lower than the market rate of interest. The expenses covered by the Bank in the loans that they offer include fee expenses, travel expenses, books and study materials, examinations etc.

EMPLOYER SPONSORSHIP

Many B-schools and Institutes extends discounts on the total academic fee, for the relatives and children of the employees. This takes into account the tuition fees and the living costs with an expectation of loyalty: the employee will continue to serve the Institute and turn out to be beneficial for them.