Updated On : August 7, 2023
Studying and getting admission at an Indian Institute of Management (IIM) could be costly and extravagant, and not everyone can afford it independently. The option for IPMAT Education Loan and scholarship have helped students afford the costly tuition fees of IIMs.
Everybody knows that IIM (Indian Institute of Management) is one of the country's best management institutes. The best institutes are very expensive and take around 25 lakhs rupees as a fee for their IPM (Integrated Program in Management) program.
In this article, you will get to learn about the financial assistance available in the form of IPMAT Education Loans and scholarships.
IIM Indore provides a scholarship named Need-Based Financial Assistance (NBFA). Need-Based Financial Assistance (NBFA) is provided based on family income and assets owned by the applicant's family.
The Financial Assistance provided by IIM Indore is further divided into two categories. The IPMAT Education Loan and scholarship at IIM Indore are divided into two categories are as follows:
The following IPMAT Education Loan and scholarship facilities are for MBA students, but the arrangement is indistinguishable from the IPM program:
This scholarship is granted based on the CGPA obtained by the applicant and their family income. The candidate has to obtain a minimum of 6.5 CGPA out of 10, and their parental income should be less than or equal to Rs. 2,00,000 to be eligible for this scholarship.
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This scholarship is granted to the SC / ST category candidates based on their family income status. The scholarship amount can be more than the tuition fees and certain other fees like library fees, sports and equipment fees, etc.
Other IPMs will announce their terms of financial assistance soon.
The Ministries of the government of India and the State governments have established the National Scholarship Portal (NSP). The National Scholarship (NSP) is a one-stop solution for applying for scholarships under the state government or the central government.
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Besides this, different State Governments propose scholarships/student credit card schemes to eligible students.
Candidates who are interested in applying for this scholarship/credit card scheme can visit the official website of the respective state government and can get all details and all documents required to apply for this scholarship scheme
You can’t just depend on the scholarship completely because there is very less chance that you will get the full 100% scholarship from the government, so you should also have a backup plan. Your backup plan should also look for an education loan from banks.
Quantum: Quantum means the loan amount, you can say, the principal amount for which the loan is availed.
Collateral: Collateral means a loan against any of your valuable assets like a house, car, FDs, Gold, etc.
Repayment Period: The repayment period is when the loan amount must be repaid. This repayment period starts after completing the degree and getting the job placements.
Moratorium Period: The moratorium period is when the borrower cannot make any repayment during a loan term.
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MCLR (Marginal Cost of Fund-Based Lending Rate): The marginal cost of fund-based lending rate (MCLR) is the minimum lending rate below which a bank is not authorized to lend.
The collateral free - loans are available to be availed for any institute. The student can avail of collateral free - loans up to Rs. 7,50,000 for IIM IPM admission.
The student avail of collateral-free - loans of a higher amount than Rs. 7,50,000 only if the institute they are joining comes under the premiere institute category. The Indian Institute of Management (IIM) comes under the premiere institute category.
If the student wants to avail of bank-specific loans, then the State Bank of India and the Central Bank of India offer India’s most availed loan options.
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According to the SBI Scholar loan options, the Indian Institute of Management Indore (IIM Indore) comes under the AA category. The students of the IIM Indore institute can avail of loan amounts up to Rs. 40 lakhs without mortgaging any of their tangible assets to the bank as collateral security.
And not just this, they will also get an interest rate benefit; they just have to pay the loan amount at the rate of interest of 6.85% per annum.
Although the other 4 IIMs come under the A category. The students of the other 4 IIMs institutes can avail of loan amount up to Rs. 20 lakhs without mortgaging any of their tangible assets to the bank as collateral security and Rs. 30 lakhs without mortgaging any of their tangible assets to the bank as collateral security. And not just this, they will have to pay the IIM Indore IPM bank loan amount at the rate of interest of 7% per annum.
The candidate will get a repayment period of up to 15 years after completing the course.
The candidate will also get 12 months, i.e., 1 year of repayment holiday also.
This repayment scheme is valid and adapted to the IIM Indore and IIM Rohtak, but soon all the IIMs will also integrate this scheme.
The Central Bank of India allows the candidates to avail of collateral-free loans up to Rs. 40 lakhs. Under this scheme, all the IIMs IPM programs are acknowledged. (interest rate = 7%)
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The candidate will get a maximum repayment period of up to 10 years for the loan amount of up to Rs. 7,50,000.
The candidate will get a maximum repayment period of up to 15 years for the loan amount above Rs. 7,50,000.
The candidate will also get 12 months, i.e., 1 year of repayment holiday also.
The interest rate is attached to MCLR (Marginal Cost of Fund Based Lending Rate), which differs from bank to bank.
The interest rate relies on various factors, such as
The interest rates are low for the public sector banks (7 - 9%) and high for the private banks (10 - 14%).
The application process for an education loan starts when the student receives the admission letter and pays the initial seat allotment fees at IIM.
After the education loan is processed and approved, the candidate will get the amount paid initially reimbursed. For this kind of thing, it is suggested that a certain amount of money should be kept aside in advance.
The ability to avail IPMAT Education Loan and scholarship depends on the following factors:
All the students prefer public sector banks over private banks because public sector banks charge fewer interest rates than private sector banks.
Public sector banks take more time than private sector banks. Private sector banks will process your loan in 3 to 7 working days, but the public sector bank will take 3 to 4 weeks of time to process the loan application.
The drawback to availing of an education loan from a public sector bank is that they take a lot of time to process it. Other than this drawback, there is no other problem in the public sector banks.
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Frequently Asked Questions
What is the definition of Family as per NBFA?
What are the required documents to be submitted for earning members?
What is the fee structure of the IPM program offered by the IIM Indore for Indian citizens?
What is the fee structure of the IPM program offered by the IIM Indore for International applicants only?
How many applicants appeared this year for the IPMAT entrance examination conducted by the IIM Indore?