This presentation explores how to fund your education in the US - especially an MBA. It details the typical ways in which to raise the funds such as loans, and scholarships.

1. 6 ways Indians fund their US MBA
Arun Jagannathan

2. Approach #1
Loan from a US Bank
- Many Bschools have tie-ups with local banks such as Harvard
- The US interest rates are low (~7%)
- Except in top schools, loan may cover only 20-30% of your
entire expense
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3. Approach#2
Loans from Indian Banks (Non-
Collateral)
- Loans available upto 10lakhs
- However interest rates are very high (14-15%)
- A few education loan specific initiatives such as Credila from
HDFC make paper-work very easy
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4. Approach#3
Loans from Indian Banks (Against
Collateral)
- As good as getting a loan from Muthooth Finance against
your mom’s jewellery.
- You can get upto 85% of the expenses as a loan if you have
enough assets to show
- Interest rates, though lower than unsecured loans, will still
be higher than a US loan
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5. Approach #4
Self-Finance
- Don’t just think bank account. Think
 Provident Fund
 House deposit
 Car/bike sale
 Liquidating your stocks/MF
 Gratuity
-Essentially every nickel and dime you can get your hands on!
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6. Approach #5
Soft Loans
- Think F/F/F: Friends/Family/Father-in-law, or
Friends/Family/Fools 
- Typically the only collateral is your reputation within your
family circles.
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7. Approach #6
Scholarships
- If you have a high GMAT score and a great profile then some
of the mid-tier MBA programs might offer significant
scholarships.
- You can also apply for certain fellowships based on
nationality, gender, career options etc such as the Reliance
Stanford Scholarship.
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8. Putting it all together
Requirement Fulfillment
Approach #1: $60,000
Approach #2: $20,000
Approach #3: $40,000
Approach #4: $30,000
Approach #5: $40,000
Approach #6: $0
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Total: $190,000
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Taken from the Wharton MBA Website
as representative of typical costs.
This is for 1 year. Need to multiply by
2 i.e. $186,000
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