How To Finance Your MBA Degree: A Guide to Funding Options

Pursuing an MBA degree in India can be expensive, but funding the costs of doing an MBA is relatively easy. You can use your personal savings or withdraw a bank loan to do an MBA in the top B-schools in India. Moreover, several top-tier MBA colleges offer scholarships to students. Such MBA programme scholarships help to cover the course fee to a great extent.
Working professionals seeking an MBA degree can apply for company sponsorships for full or partial coverage of the costs. It may be cumbersome to secure the funds to cover the course fee, but the investment in an MBA degree is worth every penny. In fact, in 2023, there has been a rise in the employability of MBA graduates from 47% to 60%, making MBA a sound career choice.

Explore the various funding options right here and make the decision to join the best B-school in the country today.

How to Pay for an MBA Education?

The cost of most MBA programs can run into lakhs. While some can afford the costs without breaking a sweat, most find the cost excessive. However, there are a handful of options for funding your MBA.

From getting a loan to acing a scholarship exam, you can easily make your dream of studying MBA in the IIMs come true. The fee structure of the IIMs lies between Rs. 13-23 lakhs. Other private business schools of the top-tier charge a course fee of Rs. 10-20 lakhs.

Apart from the course fee, a student must also meet the hostel fee, project expenses, and other costs. Overall, studying MBA costs a fortune. Nonetheless, if you are determined to pursue an MBA in the college of your choice, then the following funding options may be of great help to you:

1. Apply for a Student Loan

Applying for a student loan is often the only way to cover the steep cost of pursuing an MBA in India. A loan of Rs. 20 lakhs would be sufficient to study in the top-tier business colleges of the country. Almost all public and private banks and non-banking financial institutions offer education loans at varying rates. Select a scheme with a low-interest rate and an affordable EMI policy.

Keep the following factors in mind for choosing the right education loan for you:

• Course fee structure and other costs
• Job prospects after graduation
• Interest rate and EMI policy of the loan scheme
• Repayment period of the loan
• The opportunity of paying the loan interest during the course period

The education loan covers the following costs:

• Tuition fee
• Examination, library, and laboratory fee
• Hostel fee
• Insurance premium
• Costs of college uniform, books, instruments, and equipment
• Costs of gadgets like laptops necessary for course completion
• Other expenses like project work, educational tours etc.

2. Try Your Hand at Part-Time Jobs

Working part-time while studying can be challenging, yet it would greatly help to repay the loans. Try to secure a part-time job in your field of study to connect with the experts in your industry. Build a robust network through your part-time job and pave the way for new job opportunities in the near future.

You can apply for paid internships as well. Internships help you learn and cover a part of the cost of studying MBA at IIMs and other colleges. Working as a teaching or research assistant also helps pay the loan EMI and other bills. Remember to apply for teaching assistant jobs at your university while pursuing an MBA.

3. Sit for the Scholarship Exams

A scholarship is the best way of funding your MBA. The scholarship exam can be tough, but if you have the merit, do not let anybody stop you. Securing a scholarship can save you from the worries of repaying student loans. Several business schools offer scholarships based on the CAT percentile, performance during under-graduation, or both.

Besides business schools, industries such as OP Jindal and Aditya Birla Group also offer MBA scholarship schemes. You may opt for an MBA scholarship if you are uncomfortable with loans and mortgages.

Keep the following factors in mind while choosing a scholarship for pursuing an MBA in the top B-schools of the country:

The coverage of the scholarship: A scholarship can offer partial or complete coverage of the costs of studying MBA. ** The scholarship eligibility conditions:** Make sure to check the eligibility conditions of the scholarship, such as minimum grades in undergrad, CAT exam percentile etc.

The period of scholarship: Some MBA grants and scholarships cover the costs of only the first year of the course. You may apply for a scholarship or choose one that covers the entire course period. You can also apply for part-time MBA scholarships to acquire MBA financial aid.

Need-based scholarships or merit-based scholarships: Need-based MBA program scholarships cover the MBA costs based on the student's social background and financial status.

Merit-based MBA program scholarships cover the MBA costs based on the student's academic merit. Students can get merit-based scholarships based on first come, first serve principles.

Some of the top-tier colleges in India that offer MBA grants and scholarships include the following:

• IIM-Shillong, IIM-Indore, IIM-C, IIM-B, IIM-A, and IIM-Kozhikode
• MDI, Gurgaon.
• XLRI, Jamshedpur
• IRMA Anand, Gujarat
• TAPMI, Manipal
• SPJIMR, Mumbai
• SDMIMD, Mysore

4. Seek Sponsorship from your Employer

If you are a working professional, you may apply for an MBA sponsorship from your employer. Employers of companies seeking to enhance their employees' skillsets offer sponsorships for pursuing an MBA during the course of employment. Some companies that pay for MBA studies include Deloitte, Apple, Intel, Wells Fargo, and Google.

Conclusion

Arranging funds for studying MBA is as important as securing a seat in a prestigious B-school. Study the fee structure of the MBA colleges of your choice and select a funding option accordingly. Several options exist for funding your MBA degree in India, from taking loans to raising money through crowdfunding. However, if you would rather pursue an online degree course, you may consider studying an online Master of Business Administration at Amity Online. Amity Online charges an affordable course fee and provides lucrative job opportunities to students. Enroll at Amity Online today and fulfill your ambition of obtaining an MBA degree.