Dreaming of pursuing an MBBS abroad in 2025? You're not alone. The cost of studying MBBS abroad varies significantly, with average tuition fees ranging from ₹20 lakh to ₹60 lakh for the full course. In contrast, medical education in Gujarat's private colleges can exceed ₹1 crore, pushing students toward more affordable options abroad.
Securing an education loan for MBBS abroad is a practical solution to bridge this financial gap. ICICI Bank offers education loans up to ₹3 crore for MBBS abroad, covering tuition and living expenses.
Read on to learn how to get an education loan for MBBS abroad in 2025, eligibility, and top lenders.
Can Students Get An Education Loan for MBBS Abroad in 2025?
Yes, students can obtain education loans for MBBS abroad in 2025. With the rising costs of medical education both domestically and internationally, many students are turning to education loans to fund their studies. However, recent trends indicate a slowdown in education loan growth, influenced by factors such as stricter immigration policies and increased visa rejections in popular study destinations like the US, Canada, the UK, and Australia.
Despite these challenges, opportunities remain for students pursuing MBBS abroad, especially in countries like Russia, Georgia, and the Philippines, where tuition fees are comparatively lower.
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MBBS Education Loan Eligibility Criteria 2025
To qualify for an education loan for MBBS abroad, students typically need to meet the following criteria:
- The applicant must be an Indian citizen.
- Generally, students should be between 18 and 35 years old at the time of applying.
- Successful completion of 10+2 with Physics, Chemistry, and Biology is mandatory.
- Admission to a recognised foreign medical university is required before applying.
- A co-applicant (a parent or guardian with a stable income and good credit history) is usually needed. Banks may verify income through salary slips, tax returns, or bank statements.
- Collateral for loans exceeding ₹7.5 lakh, such as property or fixed deposits, may be required.
Documents Required for Education Loan for MBBS Abroad 2025
Applying for an education loan for MBBS abroad involves submitting a set of essential documents that help lenders verify your eligibility, financial stability, and admission status. Below is a comprehensive list of documents typically needed for an education loan for MBBS abroad:
1. Identity Proof
- Passport
- Voter ID or Aadhaar card
2. Address Proof
- Passport
- Utility bills (electricity, water, or gas)
- Aadhaar card
3. Academic Records
- 10th and 12th mark sheets and certificates
- NEET scorecard or other entrance exam results
- Letter of admission from the foreign medical university
4. Financial Documents of Co-applicant
- Salary slips for the last 3–6 months
- Bank account statements for the last 6 months
- Income tax returns (ITR) for the last 2–3 years
- Proof of assets, if required for collateral-based loans
5. Collateral Documents (if applicable)
- Property papers or fixed deposit receipts
- Legal documents for pledged assets
6. Other Supporting Documents
- A fully completed loan application form provided by the bank or lender.
- Passport-size photographs of the applicant and co-applicant.
- Any other documents requested by the lender, specific to the bank or NBFC policy.
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How to Apply for an Education Loan For MBBS in Abroad?
Securing an education loan is a crucial step for students aiming to pursue higher education, especially for professional courses like MBBS abroad. The process may seem complex at first, but understanding each step, from eligibility and documentation to loan approval and disbursement, can make the journey smooth.
1. Assess Your Eligibility
Before applying, ensure you meet the basic eligibility criteria. Some schemes, like the PM Vidya Lakshmi Scheme, offer collateral-free loans up to ₹7.5 lakh with a 75% credit guarantee from the government for eligible students.
2. Gather Required Documents
Collect the necessary documents to support your application, including proof of identity (Aadhaar card, passport, etc.), academic records, admission letter from the institution, and bank statements for the last 6 months.
3. Choose the Right Lender
Research and select a bank or financial institution that offers education loans with favourable terms. Public sector banks like SBI, Canara Bank, and Bank of Baroda, as well as private institutions like HDFC Bank and Axis Bank, provide various education loan schemes. The interest rates, loan amounts, and repayment terms can vary, so it's essential to compare options.
4. Apply for the Loan
You can apply through:
- Online Portals: Use platforms like the Vidya Lakshmi Portal, which allows you to apply to multiple banks using a single application form.
- Direct Application: Visit the chosen bank's branch or website to apply.
5. Loan Processing and Approval
After submission, the bank will verify your documents and assess your eligibility. If approved, the loan will be sanctioned, and you will receive a sanction letter detailing the loan amount, interest rate, and repayment terms.
6. Disbursement of Funds
Upon acceptance of the loan terms, the funds will be disbursed directly to the educational institution or to your account, depending on the bank's policy. Disbursement is typically done in instalments based on the fee schedule of the institution.
Different Types of Education Loan for MBBS Abroad
To support students in financing their medical education, various types of education loans are available in India. Education loans for overseas studies remain one of the fastest-growing segments for NBFCs, with disbursals expected to exceed ₹60,000 crore in 2024 due to rising demand for higher education.
Here are the main types of student loan for MBBS abroad:
1. Government-Funded Loans
Government-funded schemes provide financial support to students, often with subsidised interest rates and special concessions.
- Example: The PM Vidya Lakshmi Yojana offers collateral-free loans up to ₹7.5 lakh with a 75% government credit guarantee.
- Eligibility: Typically requires proof of admission, a good academic record, and a co-applicant with stable income.
- Benefits: Lower interest rates, easy approval, and government-backed security.
- Limitations: Loan amounts may be lower than private options, and schemes are limited to specific categories or regions.
2. Bank Loans
Public and private banks are the most common sources of education loans for MBBS abroad.
- Example: State Bank of India’s Global Ed-Vantage Scheme offers loans up to ₹3 crore for foreign studies, including MBBS.
- Eligibility: Requires a co-applicant, admission proof, and satisfactory academic performance.
- Benefits: Competitive interest rates, higher loan limits, and flexible repayment tenures.
- Limitations: Processing may take longer; secured loans require collateral.
Other banks like ICICI, Axis Bank, and Canara Bank also provide specialised loans for medical students aiming to study abroad.
3. Non-Banking Financial Companies (NBFCs)
NBFCs have emerged as an alternative source for education financing, often providing faster processing and more flexible terms. NBFCs’ education loan assets are projected to grow by 40–45% in FY 2024-25, reflecting increased demand from students pursuing medical studies abroad.
- Example: Credila (HDFC Ltd.) offers education loans specifically for MBBS programs abroad.
- Eligibility: Admission to a recognised university, a co-applicant, and proof of income.
- Benefits: Quick approval, personalised loan solutions, and support for students without substantial collateral.
- Limitations: Interest rates are generally higher than government-backed loans, and loan amounts may vary.
4. Private Lenders
Some private financial institutions and international lenders also provide education loans to Indian students.
- Example: MPOWER Financing offers loans to Indian students studying MBBS in the USA and Canada.
- Eligibility: Admission confirmation, academic record, and sometimes co-signer requirements.
- Benefits: Access to funding without collateral, flexible repayment options, and coverage for tuition and living expenses.
- Limitations: Limited to certain countries and institutions, and interest rates can be higher than traditional banks.
Choosing the right education loan depends on your financial background, collateral availability, and the country where you plan to study. Government loans offer security and lower interest rates, whereas banks and NBFCs offer faster processing, and private lenders help students who lack collateral but need flexibility.
To explore the best universities and detailed fee structures for MBBS abroad, check out our guide on Top Colleges & Fees for MBBS Abroad for Indian Students.
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Best Education Loan Options for MBBS Abroad: Bank, NBFC, or Scholarships? Reddit Insights!
Many students seeking MBBS abroad often face confusion when choosing the right financial support. Between banks, NBFCs, and government schemes, understanding the pros and cons can save time and stress.
Reddit User in r/mbbsabroad shared:
"Hey guys, can you suggest to me the best education loan for MBBS from abroad, or any government scheme, or anything like a scholarship, please help me in this."
Insight: Students often lack clarity about the different funding avenues. While traditional banks offer education loans, they have strict eligibility criteria, collateral requirements, and heavy reliance on co-applicant credit scores. NBFCs provide more flexibility, faster approvals, and in some cases, no collateral for high-value loans. Additionally, government scholarships and schemes can partially offset tuition fees or living expenses.
What do we infer from the above case?
- Students should explore multiple funding options rather than relying solely on banks.
- NBFCs are viable alternatives with more flexible terms and lower dependency on co-applicant credit scores.
- Government schemes and scholarships can reduce financial burdens and are worth researching.
Tip: Before applying, compare banks, NBFCs, and scholarship programs to find a solution that balances loan amount, interest rate, processing time, and eligibility criteria. Combining an education loan with a scholarship can significantly reduce your out-of-pocket expenses.
Students looking for budget-friendly options can explore our detailed article on MBBS in abroad for Indian Students at Low Cost to find top universities and scholarship opportunities.
How Much Education Loan Can I Get for MBBS Abroad?
The maximum loan amount depends on factors such as the lending institution, collateral, course fees, and the student’s academic and financial profile. Most banks offer loans ranging from ₹7.5 lakhs to ₹3 crores, covering tuition, living expenses, travel, and other related costs.
Here’s a table with an overview of the maximum education loan amounts available for MBBS studies abroad in 2025 from top banks, NBFCs, and private lenders in India:
Top Destinations for Pursuing MBBS Abroad in 2025
Popular MBBS abroad destinations include Russia, China, Ukraine, Kyrgyzstan, Kazakhstan, and the Philippines. In Russia, MBBS tuition fees at medical universities range from INR 20 lakh to 40 lakh for the entire course, making it one of the more affordable options for medical studies abroad.
The table below shows the average tuition fees for MBBS abroad:
For more details on studying in Russia, check out our guide on Education Loan for MBBS in Russia with insights on top lenders, ROI & how to apply.
Key Factors to Consider When Applying for an Education Loan for MBBS Abroad
Taking an education loan to study MBBS abroad is a major financial decision. While it can make overseas medical education accessible, several factors influence loan approval, terms, and repayment.
Below are some of the key considerations:
1. Higher Loan Requirements
Medical studies abroad often require large sums. Students must plan for high loan amounts to cover tuition, living expenses, travel, and other costs.
2. Need for Collateral
Loans above a certain limit (usually ₹7.5 lakh) often require collateral, such as property or fixed deposits, which can be a barrier for some applicants. For an education loan for MBBS abroad without collateral, you can consider NBFCs or private lenders.
3. Limited Lenders for Overseas Education Loans
Not all banks provide loans for studying abroad. Typically, only select public sector banks, private banks, and NBFCs offer education loans specifically for MBBS abroad.
4. Foreign Exchange Challenges
Students and families must consider currency fluctuations, international transfer fees, and the timing of payments, which can affect the total cost of study.
5. Credit Score Evaluation
A strong CIBIL score of the co-applicant is crucial for loan approval and for securing favourable interest rates. A low score may result in rejection or higher rates.
6. Repayment Planning
Repayment can be challenging, especially if the student is unable to secure a stable income immediately after graduation. Planning for EMI affordability and exploring moratorium options is essential.
Pursuing MBBS abroad is a life-changing decision, and securing the right education loan can make it financially feasible. With tuition fees ranging from ₹15 lakh in Kyrgyzstan to over ₹40 lakh in Russia, understanding loan options, eligibility, collateral needs, and repayment plans is crucial. By carefully evaluating lenders, preparing the required documents, and considering factors like foreign exchange and credit score, you can ensure a smooth financing journey.
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