I Skipped My Vacation This Year – But Took a Personal Loan for My MBA

An MBA can instantly open doors and fast-track your career. This is why using your planned leaves for the degree instead of a vacation is a smart move.
But the price tag it comes with often hits several lakhs. Even with savings, you might find yourself short right when you need to lock in your seat.
That's where a personal loan can swoop in. It’s fast, doesn’t need collateral, and lets you fund your fees, books, and living expenses. Read on to explore how personal loans can help fund your education, tips to manage them, and more in this guide.
 

Does a Personal Loan for Education Make Sense?

Personal loans are a strong option when you're prioritising speed and flexibility. 
Here are a few ways they stand out in matters of funding education:

Quick Disbursal

While education loans take weeks of paperwork, personal loans are often approved and disbursed within days. Given that your admission letter could arrive at any time, instant fund access may be what secures your place.

No Collateral Needed

Most personal loans are unsecured, meaning your home or guarantors aren’t needed to get funding. This makes them a practical choice if you have limited assets.

Freedom to Use

Unlike education loans that pay directly to institutions, personal loans offer flexibility. You can use it for tuition, hostel deposit, laptop, and even formal wear for placements.

Managing EMIs While Studying

Unlike education loans that often offer moratoriums, personal loan EMIs start right away. That means your first repayment might be due within a month of disbursal.
Here’s how to prep:
●    Have a Buffer: Set aside your first 2–3 EMIs for some breathing room till your internship or job begins.
●    Set up Auto-Debit: Missing one EMI may lead to a drop in your credit score. Setting up auto-debit prevents missed payments.
●    Consider Part-Time Work: If you're doing an executive MBA or evening classes, a side hustle can help cover repayments.

Criteria to Get a Personal Loan for an MBA

Eligibility criteria are straightforward but important to check before applying:
●    Age: You must be between 21 and 58 years old
●    Employment Type: Salaried professionals are preferred. Self-employed individuals are eligible, but often need to show a higher and more stable income
●    Income: A minimum monthly income of ₹15,000 is required
●    Credit Score: Ideally 700 or above. A higher CIBIL credit score improves your approval chances and may get you a lower interest rate
●    Work Tenure: At least 6 months in your current job for salaried professionals and 2+ years for self-employed individuals, to show employment stability
Other factors like location and existing EMIs make an impact, too. If you’ve got a strong profile, the Hero Digital Lending App could even pre-approve your education loan amount. No extensive paperwork or branch visits.

Key Tips to Manage Your MBA Loan

Remember, you have more than just tuition fees to take care of. Before food, travel, and rent eat up your balance, let your money work as smart as you do.
●    Budget Your Monthly Needs: MBA fees are spread out (some quarterly, some on a need basis), so split funds up and park them in short-term deposits.
●    Borrow Only What You Need: If you need ₹7.5 lakh, don’t borrow ₹10 lakh just because it sounds better. A lower principal means lower interest.
●    Compare Interest Rates: Calculate and compare processing fees, and negotiate if you can.
●    Prepay When Possible: Even a ₹50,000 part payment can save thousands in interest, so take advantage of it when you can.
●    Avoid Taking Multiple Loans: Stacking EMIs might harm your credit score and reduce your chances of approval for future large-ticket purchases.

Final Thoughts: Investing in Your Future

Choosing an MBA over a vacation is more than just a wise decision; it's a strategic investment in your career. A personal loan allows you to pay for tuition, living expenses, and other fees ahead. They also do not require collateral and can save your emergency finances.
In short, personal loans help you take that leap for your career without waiting years to save up. And with Hero FinCorp, you don’t need to jump through hoops of extensive paperwork and can be disbursed in minutes.
Ready to invest in your future? Check your eligibility instantly with Hero FinCorp and apply for a personal loan today!

Frequently Asked Questions

1. Can I get a personal loan with no co-signer for my MBA?

Yes. Most personal loans are unsecured and don’t require a guarantor, especially if you meet income and credit score criteria.

2. Can a personal loan cover my entire MBA cost?

It's definitely possible. Remember, your loan amount depends on your income, credit profile, and existing EMI obligations.

3. Will my interest rate be lower if I have a high credit score?

Yes! A good credit score (700+) can fetch better interest rates and even lower processing fees.

4. Can I take a personal loan if I’m not working currently?

It can be challenging. Most lenders require steady income. If you're between jobs, consider applying with a co-borrower or after securing a role.

Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.