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MBA loans for international students from India

Although earning your Master of Business Administration (MBA) can lead to lucrative career opportunities, you’ll first need to figure out a way to pay for your degree. The average cost of an MBA programme in the United States is US$61,800 (INR 51,50,000), according to the Education Data Initiative, but some schools charge well over US$100,000 (INR 83,33,000).

Even if you have some savings or financial help from your family, you may need additional financing to cover the costs of tuition, fees, housing and other living expenses. One option is to take an MBA loan.

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Key statistics

  1. Distribution by academic level in the U.S. for international students:In the 2023-2024 academic year, the total number of international students in the United States reached 1,126,690. Of these, 883,908 students were enrolled in academic study, including undergraduate and graduate programmes, while 242,728 participated in optional practical training (OPT). Source: IIE Open Doors 2024 Report
  2. Employment outcomes for master’s degree graduates in the U.S.Nearly 90% of master’s degree graduates from the class of 2023 were employed or continuing their education within six months of graduation, reflecting strong career prospects for advanced degree holders. While this marks a 0.9% decrease from the class of 2022, it remains higher than employment outcomes recorded during the pandemic, highlighting the resilience of the job market for master’s graduates.Source: NACE – Class of 2023: Nearly 85% of Bachelor’s Grads Employed or Continuing Education
  3. The average cost of a master’s degree in the U.S.:According to the Education Data Initiative, as of November 2024, the cost of a master’s degree typically ranges between US$44,640 (INR 3,716,000) and US$71,140 (INR 5,945,000), depending on the school, major, and program length. On average, the cost is around US$62,820 (INR 5,291,000).Source: Education Data Initiative – Average Cost of a Master’s Degree

Explore your options before taking an MBA loan

While MBA loans can be helpful financing tools to cover the costs of your education, you want to avoid taking on too much debt. You have to pay student loans back with interest, which could cost you a significant amount over the years.

Before you take a loan, reach out to the financial aid office at your school to discuss your financing options. Explore opportunities for grants and scholarships, such as the Fulbright Foreign Student programme, that will help cover at least some of your expenses.

Since grants and scholarships are types of gift aid that you don’t have to pay back, they can lower your educational costs and reduce the amount you need to take in MBA loans.

You may need a cosigner for your MBA loan

As an Indian student, you’re not eligible for federal student loans from the U.S. Department of Education. Instead, you’ll need to obtain a student loan from a private lender, such as a bank, credit union or online loan company.

Most private lenders in the U.S. require you to have steady income, an established credit history and a good credit score, which many Indian students do not initially have. As a result, you may be required to apply for your loan with a cosigner.

Specifically, you may need to apply with a cosigner who’s a U.S. citizen or permanent resident and has a steady income, along with established credit and a credit score of 670 or higher. Your loan’s interest rate and terms will be based on your cosigner’s credit.

Your cosigner will also become equally responsible for the MBA loan, meaning they’ll be expected to repay it if you fall behind. If you miss payments, your cosigner’s credit may be affected.

What to do if you don’t have a cosigner

If you don’t have a cosigner, you’re not out of options. Some lenders, such as MPOWER Financing, offer MBA loans to Indian students without a cosigner or collateral required.

You’ll still have to meet other requirements, such as attending an eligible school.

Final word on MBA loans

If you’re on the hunt for an international MBA student loan, make sure to do your homework before you pick a lender. Consider the amount you want to borrow and the terms and conditions that will come with your loan, including the loan’s:

  • Interest rate, and whether it’s fixed or variable
  • Annual percentage rate (APR), which includes both interest and fees
  • Repayment term in months or years
  • Loan fees, such as an administrative or origination fee
  • Grace period before you have to start making payments

Additionally, find out when your first payment is due to ensure you don’t miss any bills. Once you get a job after graduation and start earning an income, you could consider making extra payments on your MBA loan to pay it off faster.

For more information on MBA loans for international students, start your search with MPOWER Financing.

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FAQs

What MBA scholarship opportunities are specifically available for Indian students?

Indian MBA applicants can explore several targeted scholarship options like the JN Tata Endowment, providing loan scholarships of INR 10,00,000 with partial conversion to grants based on performance. The Stanford Reliance Dhirubhai Fellowship offers full tuition for up to five Indian students attending Stanford Graduate School of Business who commit to returning to India after graduation. The Indian School of Business (ISB) YLP programme partners with several U.S. business schools to offer exchange scholarships for promising Indian students with limited work experience. Also, MPOWER Financing awards up to US$5,000 to promising STEM postgraduate students from India through its Udaan India Scholarship.

How do loan repayment terms differ between Indian bank education loans and U.S.-based MBA loans?

Indian bank MBA loans typically require repayment to begin within six months of graduation with five- to seven-year terms, while many U.S. lenders offer more flexible 10-year repayment periods. Indian loans offer tax benefits under Section 80E allowing unlimited interest deduction for eight years, while U.S. loans potentially provide tax advantages for Indian students while they are in the U.S. Additionally, interest rates on Indian bank loans may be lower than U.S. private loans for international students, but require substantial collateral like property documents for amounts exceeding INR 7,50,000.

What strategies help Indian students minimize MBA debt while studying in the U.S.?

Focus on applying to business schools with strong financial aid packages for international students, such as Harvard, Stanford and NYU Stern, which offer need-based scholarships covering up to 50% of tuition. Consider graduate assistantships that provide tuition waivers and stipends, particularly at public universities where these positions are more available to international students. Many successful Indian MBA students also combine multiple funding sources, including partial scholarships, employer sponsorship (especially from consulting and tech firms) and family contributions to reduce overall loan amounts.

How can Indian MBA students leverage their degree for better loan repayment prospects?

Choose MBA programmes with strong job placement rates in industries like consulting, technology and finance, where starting salaries often exceed US$120,000 (INR 1,00,00,000), making loan repayment more manageable. Focus on developing in-demand skills like data analytics, digital transformation and sustainability management that command premium salaries in both the U.S. and Indian markets. Additionally, many MBA programmes offer loan forgiveness programmes for graduates working in social impact sectors, and some companies provide student loan repayment assistance as an employee benefit, particularly for roles in underserved areas or high-demand functions.

What visa and work authorization considerations should Indian MBA students understand when taking loans?

Indian MBA students should understand that the F-1 visa allows for optional practical training (OPT), providing 12 months of work authorization after graduation, with a potential 24-month extension for STEM-designated MBA programmes. H-1B visa sponsorship typically requires employer support, with application timing critical for loan repayment planning. Additionally, maintaining a continuous employment status is essential for loan repayment, so building relationships with employers likely to sponsor work visas should be a priority throughout the MBA programme.


*Rates as low as 9.99% (11.16% APR). This interest rate and APR includes a 0.25% discount for automatic recurring payments.

DISCLAIMER – Subject to credit approval, loans are made by Bank of Lake Mills or MPOWER Financing, PBC. Bank of Lake Mills does not have an ownership interest in MPOWER Financing. Neither MPOWER Financing nor Bank of Lake Mills is affiliated with the school you attended or are attending. Bank of Lake Mills is Member FDIC. None of the information contained in this website constitutes a recommendation, solicitation or offer by MPOWER Financing or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.

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