Education Loan for Studying MBBS Abroad 2024: A Complete Guide

Many Indian students dream of becoming doctors, and study an MBBS degree abroad can be a great way to achieve this goal. However, the MBBS abroad fees can be a deciding factor for students planning to study MBBS abroad. This is why students look for an education Loan to study MBBS abroad. These are special education loan for MBBS abroad offered by banks and financial institutions to help students pay for their medical education at universities outside India. Student loans for MBBS can cover tuition fees, living expenses, and other costs like books and travel.

This Story also Contains

1. Education Loan for MBBS Abroad 2024: Highlights
2. Why Should You Take an Education Loan for MBBS?
3. Types of Education Loan for MBBS Abroad
4. Education Loan for MBBS Abroad Without Collateral
5. Education Loans for MBBS Abroad: Eligibility 2024
6. Education Loan Schemes for MBBS to Study Abroad
7. How to Get Education Loan for MBBS Abroad?
8. Benefits of Education Loan for MBBS Abroad
9. Problems that Arise While Applying for MBBS Loan
10. Essential Tips for Securing an Education Loan for MBBS Abroad

Pursuing an MBBS degree abroad provides access to world-class education, exposure to diverse medical practices, and the chance to develop a global perspective on healthcare. However, the financial implications of studying MBBS abroad can be challenging. Education loan for MBBS abroad allows students to focus on their studies without the immediate pressure of finances.

There are different types of education loans for MBBS abroad available, such as secured and unsecured loans, each with its own eligibility criteria, interest rates, and repayment terms.

Candidates must understand the details of education loans, from how to get education loan for MBBS abroad to repayment strategies. This article explains the importance of education loan for MBBS abroad and provides an overview of how loans can help students achieve their dream of pursuing medical education abroad.

Education Loan for MBBS Abroad 2024: Highlights

Why Should You Take an Education Loan for MBBS?

MBBS is a long course that takes up to 5-6 years of your career. Thus, when you invest such important years of your life in MBBS to obtain a degree, you expect to receive a high-quality education abroad. In another country, you can not only gain excellent education but also develop your individuality. However, the high MBBS abroad fees prevents you from studying abroad, which is an excellent reason to take out an education loan.

Types of Education Loan for MBBS Abroad

There are 2 types of education loans for studying MBBS abroad, these include secured loans and Unsecured loans.

• Secured Education Loans: These loans require collateral, such as property or fixed savings, to secure the loan amount. Secured loans often have lower interest rates than unsecured loans.

• Unsecured Education Loans: This is an education loan for MBBS abroad without collateral, but typically has higher interest rates. Unsecured loans are often available for smaller loan amounts.

Details You Must Know to Get an Education Loan for MBBS Abroad

There are two forms of educational loans: collateralized and education loan for MBBS abroad without collateral. A collateral loan requires you to put up some security against the loan. It might be a fixed deposit or a property. It is sometimes referred to as a secured education loan. Non-collateral is a type of transaction in which no security is required. As a result, it is commonly referred to as an unsecured education loan. The guidelines and many features of obtaining a collateralized or non-collateralized student loan for MBBS abroad differ.

Also Read: Beware of Fraudsters While Planning to Study MBBS Abroad

Education Loan for MBBS Abroad Without Collateral

Candidates seeking higher education without any security or guarantor can apply for a non-collateral education loan. These MBBS education loans are offered on the basis of an applicant's academic record, admission to a recognized university, and future earning potential. These are generally unsecured education loans, which means that students are not required to provide their property or shares as mortgage. A few of the banks that offer education loan without collateral are mentioned below.

Education Loan for MBBS Abroad 2024

Education Loans for MBBS Abroad: Eligibility 2024

Eligibility criteria can vary between lenders, but some common loan requirements are mentioned below:

• Indian Citizenship: You must be a permanent Indian citizen.

• Admission Proof: For an MBBS programme, provide an offer letter or confirmation of admission from a recognised university overseas.

• Academic Record: A strong academic record in earlier courses (10th and 12th board examinations) is usually necessary.

• Co-applicant: In some situations, a co-applicant with a good credit history (parent, guardian) may be required.

Documents Required for Education Loan Application

• Duly filled loan application form

• Admission letter/confirmation from the university

• Academic transcripts (10th & 12th mark sheets)

• Proof of identity and address (Passport, Aadhar card, etc.)

• Co-applicant documents (if required)

• Estimated cost breakdown of tuition fees and living expenses

Education Loan Schemes for MBBS to Study Abroad

These are various education loan schemes for prospective MBBS students. However, before making a final decision, always consult with agents or loan providers because MBBS education loan eligibility varies from bank to bank, from person to person, and over time. Some of the banks along with their interest rate that provide education loans are mentioned below.

SBI Education Loan for MBBS Degree: SBI offers secured education loans to MBBS students studying abroad up to 1.5 crore. This bank charges an interest rate of 10.90%. The SBI education loan for MBBS abroad is applicable to both public and private colleges.

Axis Bank Education Loan for MBBS: Axis Bank provides a loan to students seeking MBBS from abroad that can amount to a maximum of 50 lakh. Axis Bank interest rate starts at 13.70% per annum. The loan has a payback duration of up to 15 years, and the processing fee is 2% of the loan amount.

HDFC Education Loan for MBBS: HDFC banks provide prospective students an MBBS abroad education loan of up to 1.5 crores. The interest rate of this bank is between 9.5% and 11.5%. The loan has a 15-year payback duration and covers tuition expenses until the course is completed, with a 0% loan margin.

Canara Bank Education Loan for MBBS: Canara Bank offers need-based funding to MBBS candidates, with interest rates starting at 9.25%. The loan payback length is 15 years, with a special reduction of 0.50% for women.

Bank of Baroda Education Loan for MBBS: Bank of Baroda Education Loan for MBBS: Bank of Baroda offers a 1.50 crore loan with an interest rate beginning at 8.55%. The bank does not charge any processing fees for amount up to 7.5 lakh. After that, the prices are 1% of the loan amount, or Rs. 10,000.

How to Get Education Loan for MBBS Abroad?

Candidates seeking an education loan for MBBS abroad should follow the procedures mentioned below to successfully apply for a safe loan.

1. Research and examine: Research other banks and financial organisations to evaluate interest rates, loan amounts, payback periods, and other factors. Use internet tools and loan comparison websites to help conduct your research.

2. Check Eligibility: Ensure that you meet the loan's qualifying requirements. Collect all required documents, such as academic records, admission letters, identity proof, and financial statements.

3. Calculate Loan Amount: Determine the total expense of educational institutions, which includes tuition, housing, travel, books, and personal costs. Calculate the loan amount by removing any scholarships or awards.

4. Complete the Application: Verify that the loan application form is filled out correctly. Provide the needed information and documents. Some lenders accept online applications, which makes the procedure more convenient.

5. Interview and Verification: After submitting the application, students may be contacted for an interview. The lender will review the documentation they provided to figure out their financial repayment capacity.

6. Loan Sanction & Disbursement: Once approved, the lender will send a sanction letter describing the loan amount, interest rate, repayment terms, and restrictions. The loan amount is normally paid directly to the university in installments or according to the university's fee schedule.

Benefits of Education Loan for MBBS Abroad

• Fulfilling Your Dream: An education loan bridges the financial gap, allowing you to pursue your MBBS degree abroad without involving in expenditures.

• Focus on academics: With the financial assistance of an education loan, you can focus on your academics without worrying about urgent monetary constraints.

• Flexible Repayment Options: Most school loans have easy repayment options, allowing you to begin paying after finishing your studies and securing employment.

• Tax Advantages: The interest paid on an education loan for MBBS in India is often tax-deductible, providing some financial assistance during loan repayment.

Problems that Arise While Applying for MBBS Loan

As discussed above, the banks can assist you in obtaining the appropriate loan amount. However, acquiring a loan is not easy. In many circumstances, the loan is denied. Thus, students must explore the reasons that may prove to be a barrier in their way. A few of these reasons are as follows:

Inadequate Collateral Value: The collateral should be equal to or more than the requested loan amount. If the collateral value is insufficient, the student loan for MBBS is likely to be denied. Thus, before applying for a loan, one must always understand how much the asset is worth.

Poor Academic Performance: Your academic performance will also be considered when approving the loan amount. The bank calculates your scores and makes an assessment of your employability. If performance is great, authorities are certain that the loan will be repaid. However, when the performance falls short of expectations, it creates concerns for them.

University Eligibility: The primary problem that emerges when applying for a loan is that you evaluate interest rates and quantities. When you're about to close the sale, these two criteria become your primary considerations. The difficulty arises when you discover that the university you are applying to is not on the approved list of lenders. As a result, it is essential to verify the status of the university before completing a loan application.

Documentation: An MBBS education loan abroad is a complicated process that necessitates the submission of several papers. Therefore, you must submit the right documents. Any errors, incompleteness, or missing documents might result in the loan application being rejected. Banks investigate every minute detail before approving any loan.

CIBIL Score: Credit history is important in the granting of student loans. Banks and other financial organisations investigate your creditworthiness or history before approving a loan. A poor credit score might result in loan rejection.

Factors to Consider When Choosing an Education Loan for MBBS Abroad:

A few factors to consider when choosing an education loan for MBBS abroad are listed below:

• Loan Amount: Calculate the overall cost of your MBBS programme abroad, including tuition, living expenses, and any unrelated expenditures. Choose a loan that will cover all of your expenses.

• Interest Rates: Compare the rates offered by different lenders. Choose a loan with a competitive interest rate to reduce total loan repayment costs.

• Repayment Terms: Select a repayment plan with reasonable monthly installments that matches your expected future income after completing your courses.

• Processing Fees and Other Charges: Make sure you understand all processing fees, prepayment charges, or other loan-related costs.

• Flexibility: Consider the loan's flexibility, such as repayment holidays, extension options, or online loan management tools.

Essential Tips for Securing an Education Loan for MBBS Abroad

Candidates seeking an education loan for MBBS in abroad should follow the guidelines mentioned below to effectively get an education loan.

• Begin early: Begin researching and applying for loans for education well before your university enrollment date, and if possible, choose one of the Cheapest MBBS Colleges to decrease the loan amount.

• Maintain a good credit score: A strong credit history (or that of your co-applicants) can have a major impact on loan acceptance and potentially reduced interest rates.

• Compare Loan Options: Don't accept the first offer. Compare loan terms, interest rates, and other characteristics from several lenders to discover the best deal.

• Negotiate Interest Rates: If possible, negotiate the interest rate with the lender, particularly if you have a great academic record or a co-applicant with a high credit score.

• Read the Fine Print: Before signing the loan agreement, carefully consider all terms and circumstances, such as interest rates, repayment timeline, any additional fees, and prepayment penalties.

• Plan your finances: Make a realistic budget for your living expenses while abroad, taking into account expected currency rate shifts.

• Explore Scholarships: Research and apply for scholarships offered by the university you want to attend, or other scholarship programmes that might help reduce your financial burden.

Also Read: Top scholarships for Indian students to study medicine abroad