Which is a better loan for a European MBA— taking a loan from an Indian bank or a European lender?

Question

Mansih K · Accepted Answer

Both Indian and European MBA loans have pros and cons, but it comes down to cost versus flexibility.

Indian bank loans (SBI, Axis, HDFC Credila) offer lower interest rates &mdash; typically 10&ndash;11% in INR &mdash; and let you repay in India, avoiding exchange rate risk. However, they almost always need collateral or a co-signer and can take weeks for approval.
European lenders like Prodigy Finance, MPOWER, or Lendwise are faster and don&rsquo;t require security or local guarantors. Interest rates hover around 7&ndash;9%, and repayment starts after graduation.

If you have access to a guarantor and want lower rates, go for an Indian loan. If you prefer ease, speed, and global repayment flexibility, a European lender is usually the smarter choice.

Hema A · Answer

Choosing between an Indian bank loan and a European lender depends on your financial profile and the school you&rsquo;re joining. For most students, European lenders like Prodigy Finance, Lendwise, or Banco Sabadell are more convenient because they don&rsquo;t require collateral or a co-signer, and approval is often tied directly to your MBA admission offer.
Indian banks like SBI, HDFC Credila, or Axis Bank usually offer lower interest rates (around 10&ndash;11%) but require security or a guarantor and more documentation. European loans may have slightly higher rates (around 7&ndash;9%), but the ease of approval, no collateral, and deferred repayment until graduation make them appealing.
If you&rsquo;re joining a top school like HEC, INSEAD, or IESE, a European loan is often more flexible, while Indian loans are better for those wanting to manage currency risk in INR.