Financing your MBA in India – Part 1 (IIM B EPGP)


Made it to a One year MBA in India and wondering on how to manage the fee? Or are you sitting on the sidelines, dissuaded from applying by the substantial fees for One year MBA programmes in India? Worry not. You would be glad to know that most banks in India offer loans at special discounted interest rates for candidates accepted to One year full time MBA courses at premier business schools in India. Best of all, the loans are collateral free, so you can kiss goodbye to the hassles of offering security and finding a guarantor. This series will cover loan options for select business schools in each article. In the first article we are covering loan options for applicants to Indian Institute of Management, Bangalore. 

Shared below are select loan options from banks that IIM Bangalore has ongoing agreements with for financing the education of students selected to its One year full time MBA (EPGP). A host of other banks also have standard loan policies for One year MBA students – we will cover these in the subsequent articles.


Avanse Financial Services Pvt. Ltd. 



Avanse Advantage  for IIMB EPGP Students

– Higher Loan Amount.
– Unsecured Loan without any Collateral Security.
– 100% Loan Amount without Margin Money.
– Competitive & Transparent Rate of Interest Calculation.
– Simple and Hassle free process and minimal documents.
1.EligibilityIndian Nationals /Indian Passport Holders/NRI Working in India with OCI card.
2.Loan Available for expenses(Cost Cover)Admission Fees/Tuition Fees/Hostel Fees/Travelling Expense/Insurance Premium/Books & Laptop/Library, Laboratory Fees/Project Cost/Initial Fees Paid for acceptance of admission &International Immersion.
3.AmountComplete Cost of Education up to  25,00,000  (Twenty five Lakhs).
Security EligibilityUnsecured Loan for IIMB
4.Rate of Interest /EMIFloating in Nature.
5.EMI/ROI  Per Lakh for10 Years  ₹1,450
8  Years ₹1,640
5 Years  ₹2,238                    Rate of Interest is floating in Nature12.25% 
6.MarginNo Margin Money or, Zero Margin money .
7.Repayment PeriodFlexible from 12 Months to 120 Months.
8.Repayment Type– Simple Interest Payment
– Monthly EMI Payment
– Step Up EMI Payment
9.Income -Father/Mother/Brother/Sister/Spouse/Paternal & Maternal Uncle.
10.MoratoriumCourse Period Plus 6-9 Months [Interest to be serviced during Moratorium]
11.DisbursementDirectly to  IIMB  fees, livening Expenses to Student/Applicant
12.Processing Charges₹5,000 + Taxes one time
13.Penal InterestAs per the Company Policy, charges prevailing during that time.   -Payment for two instances waived off for IIMB.
14.Other Terms & ConditionsAll the Locations which are Serviced by AVANSE and DHFLInsurance Policy  AVANSE Protect is a mandatory for all unsecured Loans.Loan Processing within 7 working Days if all parties to loan in same City.
15.DocumentsApplicant CV & Educational documents.Applicant & Co Applicant KYC documents.Applicant & Co Applicant Financial Documents
16.Processing and Contact Details– Bangalore: Mr. Krupa Kumar
Email:  [email protected]
Mobile: +91 9611564023,  Phone: +91 80 25705881
– Mumbai: Mr. Manikandan Chettiar
Email: [email protected]
Mobile: +91 9167604062, Phone: 022 – 71112241
– New Delhi: Mr. Bhupender Kumar:
Email: [email protected]
Mobile: +91 9711996292Corporate and Registered Office Address
Avanse Financial Services Pvt. Ltd
Gr. Floor, Madhava Building,
Bandra Kurla Complex,
Near Family Court, Bandra – East,
Mumbai – 400 051 |Tel:  +91 22 7111 2233 | Fax: +91 22 7111 2234
E-mail: [email protected]
 Toll Free – 1800-222-301 | SMS AVANSE to 56677




Facility PurposeTo the students of Indian Institute of Management, Bangalore, by extending special interest rates and relaxation in security, granted to students who are Indian National
Facility TypeThe Special Scheme is applicable for the students studying in IIMB (Full time one year and two-year programs only)
Loan Amount RangeNeed based finance subject to repaying capacity of the parents/students with margin and the following ceilings: In case of full time courses (including non Executive programs) offered by Indian Institute Of Management (IIMB) loan amount may be extended up to Rs.20 lakhs based on the repayment capability of the students.
Loan MarginUp to Rs 4Lakh – NilAbove Rs 4Lakh
Studies in India – 5% of the total cost of the course
-Scholarship/assistantship to be included in margin.
-Margin may be brought-in on year to year basis as and when disbursements are made on a pro-rata basis.
SecurityUp to Rs 4 Lakh: NilAbove Rs 4Lakhs up to Rs 10.00 Lakhs: Third Party GuarantyAbove Rs 10 Lakhs: Collateral SecurityAs a special  case waiver of both third party guarantee as well as tangible collateral security irrespective of loan amount in case of IIMB may be considered on case to case basis subject to condition of full filling the Bank’s extent guidelines
ROIInterest to be offered to the students of IIMB is Base Rate i.e currently 10.25% w.e.f February 01, 2013.
Processing FeesNil
Repayment TermsRepayment holiday / moratorium: The installments and interest cannot be recovered during the course period + 1 year or 6 months after  getting a job, whichever is earlierFor loans up to Rs 7.5 Lakhs : up to 10 years
For loans above Rs 7.5 Lakhs : Up to 15years
Contact PersonMr Hemanth Kumar
Mobile+ 91 80 40607000/25635830
AddressIDBI Bank Ltd
#412, 1st Floor, Jindal Centre, 180ft Road, Koramangala, 4th Block, Bangalore- 560034



To assist you in realizing your dream career, we have promoted a special education loan product – ‘SBI SCHOLAR’ exclusively for the students of IIM Bangalore. As per the scheme, we have the pleasure to extend our in-principle sanction for an education loan up to a maximum of Rs.20,00,000/-. You can utilize this limit by adhering to the following terms and conditions. 


Expenses coveredThe following expenses are covered:

  • Fee payable to college/ School/ Hostel
  • Examination/ Library/ Laboratory fees
  • Purchase of books/ Equipments/ Instruments/ Uniforms
  • Caution Deposit/ Building Fund/ Refundable deposit supported by institution bills/ Receipts (not to exceed 10% of Tuition fees for the entire course)
  • Travel Expenses
  • Purchase of Computers, if essential for completion of course
  • Any other expenses required to complete the course like study tours, visits to foreign universities in exchange programes, project work etc.
Loan AmountMaximum of Rs.20.00 lacs depending on the fees structure advised by IIM, Bangalore.
Contribution (Margin)Just 5% margin
Rate of Interest
  • Attractive Rate of interest @1.00% above BASE RATE, which is at present 10.00% (effective rate 11.00% p.a.)
  • Simple interest to be charged during Moratorium/ Repayment Holiday
  • 0.50% concession in interest whose Spouse / Parents / Guardian as a Co – Borrower(mandatory)
  • 0.25% concession in interest rate whose work experience is more than 2 years (satisfactory documents to be produced)
  • Penal interest @ 2% is to be charged for loans above Rs.4.00 lacs for the overdue amount and overdue period.


  • The entire loan along with interest is to be repaid within a period of 12  years.
  • You will also get a repayment holiday during the study period.
  • Repayment to commence immediately after getting the job or within 6 months after completion of course.
Processing FeesNIL
Savings Bank a/cSavings Bank a/c will be opened zero balance with ATM Card and Cheque book will be issued.

Other requirements

a) Please fill up the following enclosed forms:
– Loan application form – by Applicant & Parent / Guardian
– Assets & Liabilities form – by Applicant & Parent / Guardian, individually.
– Savings Bank A/c opening form – by Applicant.

b) Anywhere and at any time you can avail our branch network / ATM with attractive Youth Card (ATM-cum-Debit Card for young), Mobile Banking facility, Internet Banking facility / SBI Life Insurance.

c) At the end of academic terms, you can opt for transferring your Savings Bank Account and Education Loan to any of our Branches in India, which is convenient to you or alternatively the accounts can be retained at this Branch.

d) Your parent/guardian is requested to sign the loan documents or required to provide security for the loan amount. For this purpose, if it is not feasible for them to visit Bangalore, alternate arrangements will be made for execution of documents at the convenient branch of your choice.

e) Loan will be released subject to CIBIL clearance in respect of borrower / parent / guardian.

f) Loan will be sanctioned subject to the SBI Life Insurance – “Rinn Raksha” with a nominal premium

2. The KYC documents required at the time of execution of documents for disbursement of loan are as under:


Particulars of Documents required

 Passport Size Photographs

From Applicant

Yes, required 3 nos

From Parent/Guardian

Yes, required 1 no

Photo ID proof

Passport/ Pan Card/ Driving License

Yes, required

Yes, required

Address proof

Driving License/ Passport/ Electricity Bill/ Phone Bill

Yes, required

Yes, required

Bank Account & Copy of IT Returns
Other documents, if any

Yes, if available
IIMB offer letter Cost Break up Sheet If any loan availed – a/c statement

Yes, required


(All the above documents’ attested copies required)

If you need any other clarifications, you can contact:

– Mr. Ganesh D Naik, Customer Relationship Officer  9845957933.

– Mr. Dhanjay – Manager (PB) 9448993362.

– Mr. Harish, Chief Manager 9449866603.

PLEASE NOTE: Information concerning any of the above rates of interest and other loan conditions subject to change.




Max Loan Amount AllowedTotal cost of education as per the IIMB offer letter
Interest Rate11.75% (floating)
Repayment PeriodUpto 10 years (including moratorium)
Moratorium18 months from the commencement of the programme or placement or whichever is earlier
EMI optionStandard
Co-borrowerParents, Siblings or Spouse can stand as Co-borrowers
Pre payment ChargesNil
Insurance CoverHDFC Ergo insurance on loan amount availed, Lower premiums
Processing FeesRs. 5000 + Taxes
Margin MoneyNone
Other Features1. Online access to Customer’s loan account.
2. Loan formalities completed at Customer’s home/office
3. Loan disbursed in tranches as per individual’s requirement over any period of time.
4. Income Tax Benefits under Section 80E of Income Tax Act of India.
Credila Bangalore Branch
Contact PersonMr. Shekhar Rao
Mobile919916520011/080 26498998Toll Free: 1800-209-3636
AddressCredila Education Loans– An HDFC Ltd Company
#447A, 2nd Floor, 9th Cross,
2nd Phase, J P Nagar, Bangalore-560078.
Email[email protected] or [email protected]
Credila- Delhi Branch
Contact PersonMr. Abhay Singh
Email[email protected]
Mr. Ashish Shankar
[email protected]
Toll Free No. 1-800-209-3636
Bank AddressCredila Financial Services Pvt Ltd (An HDFC Ltd Company)
India’s 1st dedicated Educational Loan Company
Office Address: 701 A, Devika Tours, Nehru Place, New Delhi-19
Phone: D: 91 11-32311441
M: 91 9999891796

PLEASE NOTE: Information concerning any of the above rates of interest and other loan conditions subject to change so kindly confirm rates and details with individual banks before proceeding


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