How Do Loan Facilities Work for IIM Students?
Want to know how loan facilities work for IIM students? Financial aid can be a lifesaver when planning your MBA admission at IIMs. However, you must do your financial planning before you apply for admission.
If you are planning for IIM MBA admission, you may want to know how loan facilities work for IIM students. There is no doubt about the fact that IIMs offer the best quality of education management aspirants can ask for at the PG level. That being said, the IIMs also charge an exorbitant amount as tuition fees and other expenses, which can become overwhelming for many students. This is where loan facilities can help you overcome the financial burden and help you focus on your studies. Similar to IIM courses, you need to apply for a student loan, and you must complete your financial planning for an MBA course along with your admission formalities.
Also Read: How to Get a Scholarship at IIMs Through CAT Score 2025?
How to Avail Loan Facilities for IIM MBA?
Applying for loans and financial assistance for the IIM MBA can be a long process. Follow the steps mentioned below to avail loan facilities at IIMs:
Step | Details | Key Points |
1. Understand IIM Tie-ups | Most IIMs have tie-ups with nationalized & private banks for collateral-free loans. | Loans usually cover tuition fees, hostel, mess, laptop, and other expenses. |
2. Check Eligibility | An admission offer letter from IIM is the primary requirement. | A good academic record and a co-borrower (parent/ guardian) are often needed. |
3. Compare Bank Options | Compare interest rates, moratorium periods, and repayment tenure across banks. | SBI Scholar Loan, Axis Bank, ICICI, HDFC Credila, and Canara Bank are popular choices. |
4. Loan Amount & Coverage | Up to 100% of the course fee + expenses may be financed. | Some banks offer collateral-free loans up to ₹40 lakhs for IIMs. |
5. Documentation | Admission letter, KYC, income proof of co-borrower, and fee structure from IIM. | Collateral documents are required if the loan exceeds the unsecured limit. |
6. Apply Through the IIM’s Facilitation Desk | Banks set up helpdesks at IIM campuses during admission. | Quick processing and relaxed documentation for IIM students. |
7. Loan Sanction & Disbursement | Loan sanctioned after verification; disbursed directly to the institute. | Living expenses may be credited to the student’s account. |
8. Moratorium & Repayment | Moratorium usually course duration + 6–12 months. | Repayment period ranges from 7–15 years. |
9. Additional Benefits | Lower interest rates for women candidates, tax benefits under Sec 80E. | Part-payment & prepayment allowed in most banks without penalty. |
Scholarships Offered at IIMs
Scholarships can be an excellent way to ease some of the financial burden that you take on as you invest in an IIM MBA course. Check the different scholarships available at IIMs below:
Name of IIM | Name of the Scholarship | Eligibility Criteria | Amount |
IIM Ahmedabad | IIMA Special Need-Based Scholarships | For economically weak students who wish to pursue PGP or PGP-ABM. This is a fee waiver scheme offered on the basis of the family income of the student. | Depends on the annual gross family income |
Family Income Linked Tuition Fee Waiver Scheme | Students whose total family income is less than INR 6 lakhs in the previous financial year. | NA | |
IIMA Special Scholarships (need-based) | Students who have a total family income of less than INR 200,000 as of the last financial year. The salaries of parents/ guardians and spouses are considered for this, and the income of the student or their siblings is not considered. | NA | |
Industry Scholarships (need-based) | Students who are not registered for the IIMA special scholarships can apply | NA | |
SC/ST Scholarships | Only SC/ST category students having valid certificates can apply for this scholarship. | INR 150 per month for 10 months | |
GOI Merit-cum-Means Scholarships | At least 25% of students belonging to the non-sponsored student body from both the first and second years are awarded this scholarship. | INR 2,200 per year | |
Aditya Birla Group Scholarships | Candidates are shortlisted by ABG on the basis of merit. Around six students are shortlisted. | INR 1.25 lakh per student per annum | |
OP Jindal Engineering and Management Scholars | Two students are shortlisted for this scholarship based on their academic performance of the students and an online test, along with a personal interview. | NA | |
Dunia Scholarships for scholastic excellence | Two students are shortlisted for this scholarship on the basis of merit. | INR 100,000 per student | |
Ocwen Scholarship for Competence in Academics | The scholarship is given to a first-year student who is shortlisted through a research paper and a PI. | NA | |
ONGC SC/ST Merit-cum-Means Scholarships | A few of the SC/ST students are shortlisted for this scholarship. | NA | |
State Scholarship | State Governments sometimes fund the education of some of the best students from those states. | NA | |
IIM Bangalore | Aditya Birla Scholarship | A few students from both first and second year are shortlisted who belong to the top 25% of students of their respective batches in terms of performance. | INR 175,000 per student |
Uday Nayak Scholarship | A second-year student is shortlisted for this scholarship. | INR 10,000 | |
T Thomas Scholarship | A second-year student is shortlisted for this scholarship based on merit. | INR 100,000 | |
OPJEMS Scholarship | Two students are shortlisted for this scholarship, one each from the first and second year. | INR 125,000 per student | |
Rajesh Kaushik Memorial Scholarship | Selection is strictly merit-based. | INR 150,000 per annum | |
Ocwen Financial Solutions Private Limited | One of the students is shortlisted on the basis of a research paper submitted by the student. | INR 180,000 | |
Cognizant Technology Solutions - B’izard Scholar | Three students are shortlisted on the basis of academic excellence, leadership qualities, and willingness to serve the community and study further in the same field. | Winner: INR 3 lakhs, 1st Runner-up: INR 2 lakhs, and 2nd Runner-up: INR 1 lakh | |
Societe Generale Global Solution Centre India Scholarship | Students in need are nominated by the institute and are shortlisted on the basis of interviews. | Full tuition fee waiver | |
IIM Lucknow | Need-Based IIML Scholarships | 15% of students from a batch are offered scholarships on the basis of family income and previous academic performance. Students having a family income of less than INR150,000 can apply. | NA |
Industry Sponsored Scholarships | Students are shortlisted every year based on their academic performance | Varies from INR6,000 to INR 100,000 p.a. | |
Merit-cum-Means Scholarships | 25% of the students subject to specified norms are shortlisted for this scholarship | INR 2200 per student p.a. | |
Bharti Scholarship | Students whose annual income is less than INR 1.08 lakhs from both first and second years are eligible to apply. | INR 50,000 per annum | |
SC/ST Scholarships | All SC/ST students are eligible to apply | INR 1500 per annum | |
Other Scholarships | Students are shortlisted based on family income, and their fees and maintenance charges are covered by the government of the state to which the candidate belongs. | NA |
We hope you now understand how loan facilities work for IIM students. Check the links below to learn more!
Related Articles:
If you have any doubts regarding the admission process of IIM, you can ask questions through our Q&A zone . Besides this, those who are interested in admission into any top MBA colleges in India can fill out our Common Application Form . Stay tuned with us for more articles related to IIMs and MBA admission in India!