What is the ideal tenure to repay an educational loan taken for an MBA program? How do I decide?

First of all, education loan in India comes with its own terms and conditions. Basically, the bank or the financial company suggests to repay the amount by 5-10 years that generally starts after a year after the completion of the course or six months after you get a job which one is faster. It depends on the candidate that what package he/she gets after the completion of the course and depending upon that he/she must decide that how many years he/she should need to recover the loan. The candidate may also prefer to choose a long period of time to repay the loan and after that if he/she thinks that he /she don't need that long period of time to repay then the candidate may talk with the bank or financial company to revise the terms and conditions and make the repayment time shorter. Afterall, it's the candidate who decides that how many years and what amount of EMI he/she needs to pay. I guess I am able to clear your doubts. Thank you.

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If you are looking for education loan it comes with their own terms and conditions some of them will be like the interest of that particular loan will have to be paid in your 2 years of MBA and after that you have to pay your loan and that is going to get deduct from your salary and some of them will be like loan and interest not get deducted from your salary and now a days private banks charging and less interest on education loan so I would suggest you to go for that and if you are going all government banks they are charging more than 14% interest on loan.

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Actually as per the question there is no perfect answer to this question, it totally depends on your package and time you take to get good job and good placement. Like the tenure of the education loan is about 10 years (maximum) in case of loan is up to 7.5 lakh and varies with amount of loan. The repayment period starts from 1 year later after the course completion so if you get placed after course completion so you can start immediately repaying the amount as it will help you repayment easily and will not take time. As initially you will not have any problem in repay. So start repayment of loan as soon as possible.

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Ideal tenure to repay an education loan taken for an MBA program is 10 years. You decision should be on the basis of the average package the institute offers.

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