How my Loan Application reached HSBC, Milton Keynes, UK

Sent my application for post graduate loan via DHL on friday, the 14th. And it got delivered today, on 17th. Really express service, considering it was a weekend in between. But I believe DHL works 365*24*7.

Here is the whole trail of how my shipment traveled from Bangalore to the UK. And you can clearly (or is it too obscure ?), it took less than 72 hours.

Can't see it ? Click on the image to view full version. (Could not make it look better)

Now keeping my fingers crossed. Hopefully it will be approved.

Next Step towards MBA – Applying for Loan

Even before the MBA applications started, I had started thinking about (at least created a spreadsheet listing all assets and liabilities) the investment I would be making for the MBA.

Here is how the Math looks like :

Cranfield Tuition Fees : 31000 GBP

Living and Other Expenses : 10000 GBP

Amount to be kept in Liquid/otherwise (contingency plan) : 10000GBP

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Total amount : 51000 GBP

Total Loan needed : 37000 GBP

Total amount to be paid from personal expenses and kept for later : 14000 GBP

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The good thing about getting an admit at Cranfield is that you can get a loan from HSBC, UK without a cosigner.Many fellow admits have started applying for the loan and a bunch of them have got the approval as well, some within 15 days. So good news.

So need apply for that. Looking at the list of documents to be submitted along with the loan application, it will take atleast a week to get them all.

Need to show some assets in liquid form or otherwise to convince HSBC that I would be able to repay them. It is believed that about 30-50% of the total loan applied needs to be shown somehow.

Here is the list of documents that are needed for loan application.  I gathered this from people who have already applied.

1    Loan Application Form
2    Copy of Cranfield's offer letter
3    CV
4    Copy of Driving License (Address Proof) - Any paid bill like credit card or bank statement will also do.
5    Copy of Passport - ID Proof. (Passport wont work as address proof as well)
6    Copy of degree certificates and transcripts
7    Copy of investment documents (LIC ,ULIPs, PPF)
8    Copy of Provident Fund statement
9    Bank account Detail over the period of last 3 months
10    Payslips for last 3 months
11    Income Tax Return of last 3 years
13    Wife's Bank Statement
14    Wife's Current Income Statement
15    Wife's other investments
16    MF Statement
17    PF Statements
18    Superannuation statement
19    Wife's FD Statements

On top of this one can provide parents income statements and assets as well.

Financing your MBA becomes easier in India

Financing your MBA in India was never a difficult job, especially if you want to do it from a top institute like IIM, ISB, XLRI, SP-JAIN etc.

But now, it has become even easier, both to procure a loan, and then to repay (in terms of interest rates); because of the entry of a lot of other banks who provide loans to students at competitive rates.Traditionally, only a few banks namely SBI, ICICI, HDFC  have been the front runner in providing major chunk of such loans. Now other banks like BOB, Union Bank, Axis bank etc also have come up to speed in getting their share of the pie.

References:

http://www.business-standard.com/india/news/investing-inbetter-degree/390688/

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IIMs hiking fees :

Also, with institutes raising fees this year onwards (2010), more students will want to take loans. IIMC has increase fee by 4.5 lakhs, which makes the total fee 13.5 Lakhs now. The fee for the batch 2010-2012 for IIMA has been revised to Rs 13.70 lakh from 12.5 lakh. IIMB has hiked its fees from Rs 11.5 lakh to Rs 13 lakh from the academic year 2010. Other IIMs and other institutes will also hike fees for sure.

References:

http://timesofindia.indiatimes.com/city/bangalore/IIM-Bangalore-hikes-fees-intake/articleshow/5740778.cms

http://www.financialexpress.com/news/IIM-C-hikes-fees-by-Rs-4-5-lakh/599667/

How am I going to finance my MBA ?

These are the sources from which I am going to finance my MBA

1. Loans - 60%

2. Schols - 30%

3. Personal savings - 10%

So for a 120,000 $ USD course  (60 Lakhs approx), the maths comes out to be:

Schols ~ 36K

Loans ~ 72K

Cash from personal savings ~ 12K (6 lakhs)

Looks tight to me ! A few thousands here and there and I will be seen begging for more money.

About Loans - many schools do not offer loan without a cosigner, and so will have to take this into account while choosing schools.

About Schols - will look for schools which offer schols generously.

Now that an MBA is dependent on so many things, its becoming more and more challenging. Especially the financing part. Well, I will not spend too much time on this and will look into it as I reach there. As of now back to school researching and essay writing.