After the market crash in 2008, banks stopped offering non-collateral loans very easily, and if they did, the amount offered without collateral was rather low. Other financial institutions saw this as a huge opportunity to build their own business, and started providing non-collateral education loans at high rates of interest.
This article provides information about non-banking institutions that provide non-collateral education loans for MBA.
AVANSE
Avanse provides unsecured loans up to INR 50 lakhs. The rate of interest that Avanse typically charges for education loans is 12.75%; this rate might be higher in some scenarios.
For more information, see http://www.avanse.com/start-smart
The Paras Education Foundation
There is no limit on the amount that can be borrowed under the Paras Education Loan Scheme. You can avail of loans to meet the full amount covering your tuition fees and living expenses, after deducting any scholarships and financial aid.
Paras Education Loans are available at an interest rate of 3.5% to 6.5%, linked to the Wall Street Journal Prime Lending Rate (PLR).
Typically no collateral, physical mortgage, security, or margin money is required for the Paras Education Loan. A valid and credit-worthy co-signer may be required but the co-signer is not required to provide any collateral, physical mortgage, security, or margin money.
For more information, see: https://www.isloan.org/
Prodigy Finance
For MBA Students, Prodigy Finance provides up to 80% Cost of Attendance (as provided by the school) with a minimum loan size of Rs 15,000.
The interest rate varies from 5.0% to 7.5% (fixed) over the three month GBP Libor or USD Libor Base Rate (variable). Rates are dependent on individual applicant profiles.
For more information, see https://prodigyfinance.com/
MPower Financing
Currently, the maximum an individual can borrow from MPOWER is $50,000. This is limited to $25,000 for each academic period.
Their fixed interest rates are between 7.99% (8.85%APR) and 13.99% (14.87% APR). You can receive a 0.25% rate discount by repaying your loan through automatic withdrawal, and an additional 0.25% discount for making 24 consecutive on-time payments while repaying your loan through automatic withdrawal.
Rates are dependent on individual applicant profiles.
For more information, see https://www.mpowerfinancing.com/
Stilt
Candidates can apply for a loan up to a sum of $25,000 from Stilt. Their interest rate varies from 10% to 15.99%
For more information, see: https://www.stilt.co/
Credila
Credila provides a maximum loan amount of INR 20 lakhs for higher education abroad and INR 10 lakhs for higher education in India. Their interest rates starts from 9.33%.
For more information, see http://www.credila.com/abroad/partial-list-of-universities-funded.html
GyanDhan
GyanDhan provides loans up to INR 30 lakhs. For collateral loans, the interest rate starts from 9.1% while for non-collateral loans, the interest starts at 11.5%.
For more information, see https://www.gyandhan.com/