Imagine cracking the CAT exam and getting through one of the Indian Institute of Management [IIM] campuses? Sounds amazing, doesn’t it. Most students, career-aspirants, have a dream of getting into an IIM. A degree from such a prestigious institute will guarantee you a good job and pave a career path to the top.
However, when you do crack the CAT exam, you will still be in two minds. Why? Mainly it is because of the funds. The minimum fee for an IIM is Rs. 13 Lakh, and that’s no easy feat. Feeling guilty to break your dad’s fixed deposit? Well, you don’t have to.
Simply apply for a personal loan in form of an education loan, and all your worries will be sorted.
Don’t dread the loan
Oh, so you dread by the name of personal loan thinking that lenders are going to chase you from day one to repay the personal loan? Not at all.
In case of an education loan from reputed financial institutions such as Tata Capital, you need to start repaying the education loan only after you finish your course and get a job. And if you study in an IIM, you don’t really have to worry much about getting a job because there will be a whole lot of companies wanting to hire you right away.
Personal loan interest rates for an education loan may range from 11% to 15% at most banks, depending on the evaluation of the student loan application. If lenders see bigger risks involved in the proposal they may charge a higher interest rate.
Paperwork
The documentation for education loan is also pretty simple. All you need is the admission letter or invitation for admission from the IIM you applied for, proofs of academic accomplishments such as mark sheets starting from 10th standard, Income proofs [six month’s bank statement and three month’s salary slip] of the co-applicant or parent or guarantor, along with the record of existing loans, and property documents if immovable property is offered as security [education loan is not a collateral-free personal loan].
If you are already employed, then you’d need to produce the resignation letter, acceptance of resignation letter or sanction letter for study leave. Keep all these documents handy, and your education loan will be disbursed in the least possible time.
Now, let’s look at a few reasons why it is a wise idea to take an education loan and study at an IIM for further education:
- IIMs have a track record of 100% placement statistics. The top six IIMs – Ahmedabad, Bengaluru, Calcutta, Lucknow, Indore and Kozhikode have been consistently recording 100% placement over the years. In fact, more often than not, they get more placement offers than the number of students. So, your biggest worry – how do I pay off my education loan? – is laid to rest. Post an MBA at IIM you will not only get a well-placed job but you will also draw a fat pay cheque, so paying off your education loan won’t even pinch your pocket.
- IIMs are one of the most prestigious tags that you can attach to yourself. It’s no less than an IIT or a Dr or an IAS. Taking an education loan is like that little investment, which you have to make to achieve that prestigious tag. On a lighter note, if you are planning to have an arranged marriage, then your value as an IIM MBA holder will multiply many folds in the marriage market. And if you are just a playboy, even then the IIM tag is a great weapon to impress girls and guys.
- If you couldn’t manage to study in a reputed school or college, your only saving grace is to add a jewel to your crown by studying in an IIM. And this time around you won’t even have to worry about funds because if you can show your IIM admission letter, you will easily get an education loan. Studying in an IIM, even if it means by taking an education loan, is a great way to enhance one’s career. And once you emerge out of an IIM, nobody will dare question your schooling or graduation.
- Last but not least, if you are planning to get an MBA degree, why even settle for the second best, and why not aim straight for the best that is an IIM? Whether you are an arts graduate, a science graduate or an engineer, your level will elevate once you do an MBA, and if you can do it from an IIM then there’s nothing like it. Do not stop aspiring or dreaming big for the lack of funds. There are several financial institutes such as Tata Capital, which are offering education loans at very competitive personal loan interest rates. So, just grab the offer, and aim for the best. Make the most of your career by opting for an education loan.