Financing your MBA education (Part 2)

Congratulations for securing a place in one of the best b-schools! In this article, we present you with details of Education Loans and MBA Scholarships available. Read on to know more.

Government of India has launched an IT based platform called, Vidya Lakshmi, proposed through the 'Pradhan Mantri Vidya Lakshmi Karyakram', to administer and monitor Education Loans and Scholarships, with a view to enable all students to pursue higher education of their choice without any constraint of funds.


Vidya Lakshmi portal is the first of its kind platform for students seeking Education Loan. It provides single window electronic platform for students to access information and prepares applications for Educational Loans and Government Scholarships.  This initiative aims to bring on board all Banks providing Educational Loans. Vidya Lakshmi platform provides information on the following :


- Educational Loan Schemes of various Banks

- Common Educational Loan Application Form for Students

- Application for Education Loan to multiple Banks

- Facility for Banks to download Students Loan Applications

- Facility for Banks to upload loan processing status

- Facility for Students to email grievances/queries relating to Educational Loans to Banks

- Linkage to National Scholarship Portal for information and application for Government Scholarships


There are 34 Banks registered on the portal, with 86 Educational Loan schemes and have integrated their system with the portal for providing loan processing to students.


How to apply for Education Loan through the Vidya Lakshmi portal?


An applicant must register and login to Vidya Lakshmi site, and fill-up the Common Education Loan Application Form (CELAF) by providing all the details. CELAF is a single form which students can fill to apply for Educational Loan to multiple banks / schemes. This form is prescribed by Indian Banks Association (IBA) and accepted by all banks. After filling the form, the applicant can search for Educational Loan and Apply as per their needs, eligibility and convenience. Alternatively, the applicant can also search for Educational Loan after login and apply for the suitable Educational Loan by filling the CELAF. A maximum of three Banks can be applied to through Vidya Lakshmi portal using CELAF.


Top Indian Banks providing MBA Education Loans, and their important details -



Bank Name

Max. Loan Amount (in Rs.)

Interest Rate

Repayment/Payback Tenure


State Bank of India

Upto Rs. 30 Lakh for top IIMs and top B-Schools

9.35% - 10.70%

*Women students get 0.50% concession

7 - 12 years


Oriental Bank of Commerce

Upto Rs. 25 Lakh for Category A B-Schools;

Upto Rs. 10 Lakh for Category B B-Schools

10.25% to 10.75%

*Women and SC / ST students get 0.50% concession

Upto 15 years


Allahabad Bank

Upto Rs. 20 Lakh depending on the B-Schools

8% (for IIMs);

10% (for others)

7 years


Bank of Baroda

Rs. 10 Lakh;

Upto Rs. 20 Lakh for premier B-Schools

10.5% - 11.5%

 *women students get 0.50% concession;

* Additional 1% concession for students of IIM, IIFT, XLRI etc.

5 years


Canara Bank

Upto Rs. 20 Lakh


10 to 15 years


Axis Bank

Upto Rs. 10 Lakh


*Women students get 0.50% concession

7 years


Punjab National Bank

Upto Rs. 20 Lakh

8.15% - 8.75%

10 - 15 years



Upto Rs. 20 Lakh


10 - 15 years


Avanse DHFL

Upto Rs. 10 Lakh


10 years


UCO Bank

No upper limit


10 - 15 years



Upto Rs. 10 Lakh

Based on loan amount

*Women students get 0.50% concession

5 - 7 years



Upto Rs. 10 Lakh


15 Years


Union Bank

Upto Rs. 20 Lakh


15 Years


Bank of India

Upto Rs. 30 Lakh

9.95% - 10.45%

*Women students get 0.50% concession

10 - 15 years


Central Bank of India

Upto Rs. 30 Lakh


*Women and SC / ST students get 0.50% concession

15 years


Scholarships available for higher education -


Students can also search for scholarships through the Vidya Lakshmi portal. A direct link can be found here -


We hope that you have gained some good insights from our two part series on "Financing your MBA education".  Hope you will evaluate and utilize your options wisely. All the best for starting your MBA education!