I am a 2017 pass out engineering graduate. Should I apply for MBA courses? As there will be a drop of 2 years at the time of MBA admissions.

No issues regarding 2 years gap after engineering graduation. Probably, some colleges may not offer you to get admission, but in most of the colleges, you can easily take admission. Don't worry, go ahead for scrubbing your career into the field of management.

2 years of gap is risky. The MNCs and other good companies will surely ask you the reason. You should have a valid answer for this anyhow.

There is no issue in applying for MBA course. Just go for it and don't think about 2 year's gap.

If you are able to justify the reasons for the gap, companies should not be having a problem. Some companies have strict policies of no gaps but there are many reputed firms which overlook it if they find merit in the person's abilities.