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Concessions on MBA Loans for female students
April 17 2024

Indian colleges provide concessions on MBA education Loans for female students because in India many girls are not allowed a good education. Even though primary school is attended by an equal number of boys and girls, most girls are forced to drop out because of different reasons. There is also a good percentage of women who have studied hard and are competing with men at all levels in different industries. According to the 8th, All India Educational Surveys (AIES) 2012 conducted by the National Council of Educational Research and Training (NCERT), of the out-of-school children, 62% were girls.  They make up two-thirds of the illiterate population aged between 15 to 24 years. 

  1. Gender Disparity in Education: While girls attend primary school in equal numbers as boys, the gap widens as they get older due to factors like household responsibilities and societal norms. Many girls are forced to drop out to help with household work or due to early marriage.

  2. Financial Support for Female Students: To empower women and address gender disparities, public and private banks offer various schemes and concessions on education loans for female students. This includes low-interest rates and rebates on MBA loans. Banks like HSBC, Central Bank of India, Corporation Bank, Overseas Bank, State Bank of India, and Allahabad Bank offer a 0.5% concession to female students on their education loans.

  3. High Fee Structure of MBA Programs: Pursuing an MBA/PGDM program from a top-rated B-school like IIMs, SPJIMR, IIFT, MDI, IMT, IMI, XLRI requires significant financial resources ranging from INR 10 to 25 lakhs for a 2-year course. Apart from tuition and other fees, additional expenses for lodging, boarding, and personal expenses need to be considered.

  4. Challenges in Admission: Admission to top-rated B-schools is competitive, and the high fee structure can be a deterrent for many aspirants. However, with careful planning and financial assistance, individuals can overcome these challenges and pursue their dream of obtaining a master's degree.

Here are some other details for education loans in India Generally, there is no guarantor required if the loan is below Rs 4 lakhs. However, there is a requirement for a guarantor if it exceeds this amount. A third-party guarantee would most certainly be required with most banks. Above an education loan of Rs 7.5 lakhs most banks seek a collateral in the form of an NSC certificate, Unit Trust of India Certificate etc. Insurance policy on the life of the student to protect the bank from a bad debt in case of death of the student, there is a life insurance policy that needs to be taken on the life of the student. The bank will pay the insurance amount by building it into the loan. This means that the applicant ends-up paying for the premium on the insurance. Repayment terms generally tend to differ from banks to banks. In most cases, it is one year after getting a job. 

Central Bank of India Cent Vidyarthi – This education loan is a term loan that offers a maximum of Rs.10 lakhs for pursuing an education in India and a maximum of Rs.20 lakhs for pursuing an education abroad. There is no maximum limit on the loan amount if the borrower provides a collateral to take the loan. The rate of interest for Female, SC, ST, IIT students is MCLR + 1.5%. This loan covers many expenses such as:

  • College, School or Hostel fee.
  • Laboratory, library or exam fee.
  • Travel expenses for education abroad.
  • Purchase of equipment, books, instruments, and uniforms.
  • Insurance premium of the student borrower.
  • Any expenses related to the course.

Corp Vidya Scheme – This education term loan is offered by the Corporation Bank of India. The loan offers interest rate concessions to female borrowers. The concession is 50 bps (includes 25 bps available to women borrowers) below the card rate for new loans. Female borrowers can take this loan for studying a course in India or abroad. This loan covers many expenses such as:

  • College, School, Hostel, Laboratory, library or exam fee.
  • Travel expenses for education abroad.
  • Purchase of equipment, books, instruments, and uniforms.
  • Purchase of computer at a reasonable price.
  • Any expenses related to the course.

Indian Overseas Bank Education Loan – Vidya Jyoti – This education loan offers an interest concession of 0.5% to all the girl students. It offers a maximum of Rs.30 lakhs for pursuing courses in India and a maximum of Rs.40 lakhs for pursuing courses abroad. This loan allows students to repay the interest during the period of study or pay it along with the principal amount. The repayment tenure of this loan is flexible and students can choose to take a loan for a period of 5 years to 7 years.

 HSBC’s India Student Education Loan Program- Their education loans are “priced at a further discount of 50 BPS for female students in order to promote their education.” The bank offers this as an additional discount on its interest rates to female students.

Central Bank of India’s Cent Vidyarthi Program- For female students, they have lowered the base rate of interest for female students at 1.5 percent, as compared to two percent for male students.

Corporation Bank’s Corp Vidya Program- The bank offers the concession in rate of interest at 50 BPS for girl students.

Overseas Bank’s Vidya Jyoti Program- They allows interest concession at 0.5 percent on all education loans to girl students for pursuing the education in India and Abroad.

State Bank of India’s SBI Student Loan Scheme Program- Like other banks, SBI also has a lower rate of interest for girl students at 0.5 percent.

Allahabad Bank’s education loan- Rebate of one percent will be allowed under all the slabs for girl students.


The Government of India wants to ensure that nobody is denied professional education because he or she is poor. Indian Banks' Association (IBA) has formulated a comprehensive model educational loan scheme for adoption by all Banks. It's better for parents and students to opt for an education loan when it comes to loan for a girl student. Most other forms of loans like personal and gold loans to meet the education of a girl child is not the right approach as the interest rates in most cases is far higher than that of an education loan. In cases, it is for studies abroad one may need to raise additional resources in terms of collateral. But, as mentioned earlier this is a much better proposition than going for other forms of loans, whose interest rates are far higher.  

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MBA loans
Concessions on MBA Loans
Concessions on MBA Loans for female students
MBA Loans for female students
Anisha Mukhija

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