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6 ways indians fund their US MBA


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This presentation explores how to fund your education in the US - especially an MBA. It details the typical ways in which to raise the funds such as loans, and scholarships.

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6 ways indians fund their US MBA

  1. 1. 6 ways Indians fund their US MBAArun Jagannathan
  2. 2. Approach #1 Loan from a US Bank - Many Bschools have tie-ups with local banks such as Harvard - The US interest rates are low (~7%) - Except in top schools, loan may cover only 20-30% of your entire expense2
  3. 3. Approach#2 Loans from Indian Banks (Non- Collateral) - Loans available upto 10lakhs - However interest rates are very high (14-15%) - A few education loan specific initiatives such as Credila from HDFC make paper-work very easy3
  4. 4. Approach#3 Loans from Indian Banks (Against Collateral) - As good as getting a loan from Muthooth Finance against your mom’s jewellery. - You can get upto 85% of the expenses as a loan if you have enough assets to show - Interest rates, though lower than unsecured loans, will still be higher than a US loan4
  5. 5. Approach #4 Self-Finance - Don’t just think bank account. Think  Provident Fund  House deposit  Car/bike sale  Liquidating your stocks/MF  Gratuity -Essentially every nickel and dime you can get your hands on!5
  6. 6. Approach #5 Soft Loans - Think F/F/F: Friends/Family/Father-in-law, or Friends/Family/Fools  - Typically the only collateral is your reputation within your family circles.6
  7. 7. Approach #6 Scholarships - If you have a high GMAT score and a great profile then some of the mid-tier MBA programs might offer significant scholarships. - You can also apply for certain fellowships based on nationality, gender, career options etc such as the Reliance Stanford Scholarship.7
  8. 8. Putting it all together Requirement Fulfillment Approach #1: $60,000 Approach #2: $20,000 Approach #3: $40,000 Approach #4: $30,000 Approach #5: $40,000 Approach #6: $0 ------------------------- Total: $190,000 ------------------------- Taken from the Wharton MBA Website as representative of typical costs. This is for 1 year. Need to multiply by 2 i.e. $186,0008
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