Studying at your dream college can be exciting, but it also comes with the burden of sometimes having to pay a fee that you may not be able to afford. This is true to the case of IIMs or the Indian Institutes of Management, where the fee structure is in the range of lakhs. Hence it is important to know a couple of ways in which you can fund your fees, and this is exactly what this article will offer you.
IIMs offer partial to full tuition waivers based on your family income. You can apply for this financial aid when you start college if you are eligible for it. All PGP students with annual household incomes below Rs 4,50,000 are eligible to apply for financial aid. Other students with severe financial difficulties arising from sudden unforeseen circumstances are also considered.
Here are a few facts to know about bank loans:
- The applicant should be an Indian citizen who has already been admitted into a university or college that has been recognized by authorities in India or abroad.
- For a loan of up to Rs. 4 lakh, no collaterals are required by banks
- For studying in India, the candidate has to finance 5% of the required money and 15% if he/she wishes to study abroad.
- The amount is directly paid out to the college/ university by the bank once the loan application is passed.
- Simple interest is added onto the loans for repayment, which differ according to banks, but generally falls between 6% and 9%.
- The repayment starts when the course is completed, though some banks give the extension of up to 1 year for the students to secure a job.
- The period of repayment is generally as long as 5 to 7 years.
A lot of business houses have Instituted awards and scholarships based on merit and means for deserving IIM students. So this is another way to fund your education. PGP students also receive several merit-based or merit-cum-need-based scholarships, from a number of corporates, state & central Government Ministries, and alumni instituted scholarships.
A lot of competitions offering big prize money happen on campus. So if you win a few of these, your personal IIM fee expenses over the two years will be covered.
Hope this article was of help to you in analyzing, understanding, and deciding how to finance your IIM MBA fees. We wish you all the best in all your future endeavors.