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Education Loans for MBBS Students
Education loans help students cover the cost of their education. Tailored for aspiring medical professionals pursuing an MBBS degree, these loans provide funding for tuition, accommodation, books, and related expenses, offering a lifeline to those who might struggle to afford medical education.
Let’s dive into the complete details about education loans for medical studies, their types such as with or without collateral, the eligibility and documents required and how to apply.
Education Loan for MBBS in India: Overview
Here are the details of the Education Loan for MBBS in India. Most lenders. I.e. banks and NBFCs provide education loan as per the following details:
Now that you are reading about education loan for MBBS, we assume you are aware of the MBBS fees. If not, do have a look at this blog: MBBS Fees 2024: Private/Government College Fees Structure
Education Loans for MBBS Abroad
The common details for education loans for MBBS abroad are:
Top 5 Medical Education Loan Offers 2024
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Check out the loans provided by NBFCs, that are simple, fast and efficient.: NBFC Education Loan - Top best loans in India (2024 Updated)
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Documents Required for MBBS Education Loans in India
Securing an education loan for MBBS studies in India requires submitting a set of documents to ensure the loan process goes smoothly.
Essential documents that are primarily required are:
Before you start your medical education journey, do have a look at the course structure for MBBS: MBBS Subjects For 2024: Year-Wise Syllabus And Structure.
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Eligibility Criteria for MBBS Education Loans
The basic eligibility criteria for MBBS education loans across most lenders are:
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Education Loan for MBBS Without Collateral and With Collateral
A secured education loan requires collateral, such as property or fixed deposits, to secure the loan amount. On the other hand, an unsecured education loan does not require collateral but may have a higher interest rate and stricter eligibility criteria.
Most lenders require collateral for education loans beyond a certain amount.
Let’s see the basic features of both kind of loans:
Education Loans For MBBS without Collateral
Education Loans For MBBS with Collateral
How to Apply for an Education Loan for MBBS?
Step-by-Step Guide to Apply for an Education Loan
- Research and select a suitable lender.
- Gather and organize required documents.
- Fill out the application form accurately.
- Ensure you meet all eligibility criteria.
- Submit the application along with the required documents.
- Follow up with the lender regularly for updates.
Tips for a Successful Loan Application
- Maintain a good credit score.
- Have a clear repayment plan.
- Choose a lender specializing in education loans.
- Provide all required documents promptly and accurately.
- Be prepared for a thorough scrutiny of your application.
What to Avoid During the Application Process
- Submitting incomplete or inaccurate information.
- Delaying in submitting documents or responding to lender queries.
- Ignoring hidden charges or not understanding the terms and conditions thoroughly before signing the loan agreement.
Types of Education Loans Available for MBBS Students
Government-Backed Loans
Government Backed Loans are offered by government agencies or banks in partnership with the government.
For example, in India, the government offers the Central Sector Interest Subsidy Scheme (CSIS) for students from economically weaker sections, which covers the interest on the education loan during the moratorium period.
These kinds of loans offer several advantages such as lower interest rates, flexible repayment options, and longer repayment tenures. This makes education loans more affordable for students pursuing MBBS.
Private Bank Loans
Private banks also offer education loans for MBBS students, with competitive interest rates and convenient repayment terms. Private bank loans may have faster processing times and more flexible eligibility criteria compared to government loans.
Additionally, some private banks offer special schemes for medical students, including higher loan amounts and lower interest rates for top-ranking institutions.
For instance, HDFC Credila offers customized education loans specifically for medical students, covering both tuition fees and living expenses.
International Loans for Students Studying Abroad
For MBBS students studying abroad, international education loans are a popular choice.
These loans are offered by financial institutions or banks in the student's home country and cover the education expenses of a college situated abroad. Like other loans, these are also designed to cover the cost of tuition, living expenses, and other related costs.
International loans often have competitive interest rates and flexible repayment options. For example, Prodigy Finance offers international student loans for MBBS programs, with no cosigner or collateral required, making it easier for students to finance their education abroad.
Education Loan for MBBS Loan Parameters
Here are some of the most important parameters of an education loan for MBBS:
1. Loan Amount Limit
You can secure a loan amount of up to 75 lakhs without collateral, and up to 1.5 crores with collateral security.
2. Expenses Inclusion
Your loan covers a wide range of expenses including academic fees, tuition fees, examination fees, books, uniforms, equipment, accommodation, travel, laptop or computer, overseas insurance, and medical insurance.
3. Moratorium
Since it's an education loan, you don't need to start the repayment right away. Enjoy a moratorium period extending the total course duration plus an additional year. Finish your studies, get a job and then start the repayment.
4. Co Applicants
Co-applicants are compulsory and they can include parents, siblings, spouses, and parents-in-law.
5. Repayment Duration
Repayment duration includes a 24-month moratorium period.
6. Interest Payment
Institutions in the prime list offer optional interest payments; otherwise, simple interest applies.
7. Interest Rate
Interest rates start at 8.55% for collateralized loans and 9.55% for non-collateralized loans.
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MBBS Course Fees in India
Here are the course fees details for top 10 medical colleges in India:
You can also check out the MBBS course fees details across different types of medical colleges and take a better decision.
Education Loan for MBBS Interest Rates
Given below are the interest rates on education loans for different lenders:
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Special Education Loan Schemes for MBBS
1. SBI Global Ed-Vantage Scheme
Specifically designed for students pursuing full-time regular courses in MBBS, this scheme offers loans up to INR 1.5 Crore with a flexible repayment period of up to 15 years.
2. Axis Bank Education Loan
Offers loans up to INR 75 Lakhs for Indian students studying MBBS in India, with no collateral required for loans up to INR 40 Lakhs.
3. HDFC Credila Education Loan
Offers customized loans for MBBS students with coverage of up to 100% of the educational expenses, including tuition fees, hostel fees, etc.
4. Bank of Baroda Scholar Loan Scheme
Offers loans up to INR 80 Lakhs for students pursuing professional courses like MBBS, with a repayment period of up to 15 years.
5. Canara Bank's Super Loan Scheme
Provides loans up to INR 75 Lakhs for MBBS students studying in India, with a concession in interest for female students.
6. PNB Saraswati Scheme
Specifically designed for students pursuing higher education, including MBBS, offering loans up to INR 20 Lakhs without any collateral.
7. Avanse Education Loan
Offers loans for MBBS students covering up to 100% of the course fees with flexible repayment options and a grace period for repayment.
8. Karnataka Bank Vidya Poshak
Offers loans up to INR 10 Lakhs for students pursuing professional courses like MBBS, with no processing fees.
9. ICICI Bank Education Loan
Provides loans up to INR 50 Lakhs for students pursuing higher education in India, including MBBS, with flexible repayment options.
10. Union Bank of India Education Loan
Offers loans for MBBS students with coverage of up to 100% of the course fees and expenses, with no margin for loans up to INR 4 Lakhs.
Scholarships and Grants for MBBS as Alternatives
Scholarships Available for MBBS Students
Scholarships and grants can be great alternatives for MBBS students studying in India and abroad. They are offered by various entities such as governments, universities, and private organizations.
Scholarships can help reduce the financial burden associated with higher education. They are typically awarded based on academic excellence, financial need, or a blend of both, providing opportunities for students from diverse backgrounds.
Some notable scholarships are:
Scholarships in India
1. National Scholarship Portal (NSP)
The NSP offers various scholarships for MBBS students, including the Central Sector Scheme for Top Class Education for SC students and the National Fellowship and Scholarship for Higher Education of ST Students.
2. Dr. Abdul Kalam Scholarship
This scholarship is offered by the Government of India to support meritorious students from economically weaker sections to pursue MBBS.
3. AICTE Pragati Scholarship for Girls
The All India Council for Technical Education (AICTE) offers this scholarship to encourage girls to pursue technical education, including MBBS.
4. Maulana Azad National Scholarship
This scholarship is available for minority students, including those pursuing MBBS.
5. State Government Scholarships
Various state governments in India offer scholarships for MBBS students based on merit or financial need. Examples include the Chief Minister's Scholarship in states like Punjab, Haryana, and Uttar Pradesh.
Scholarships Abroad
1. Commonwealth Scholarship
This scholarship is available for students from Commonwealth countries, including India, to study in the UK. It covers tuition fees, living expenses, and travel costs.
2. Fulbright Scholarship
Sponsored by the US government, this scholarship provides funding for international students, including Indians, to study in the United States.
3. Erasmus Mundus Scholarship
This scholarship is funded by the European Union and provides funding for international students to study at European universities, including for medical programs like MBBS.
4. Rhodes Scholarship
The Rhodes Scholarship covers tuition fees and living expenses for students from select countries, including India, to study at the University of Oxford.
Education Loans for MBBS Students: The Challenges
Many MBBS students face challenges when considering education loans. Here are the most common ones:
1. Lack of Knowledge
The primary reason that students don’t turn to education loans is the fact that most of them are unaware of the various loan options available to them and the application process.
2. Weak Credit History
Students often lack a strong credit history, which can hinder their ability to secure loans from traditional financial institutions.
3. High-Interest Rates
MBBS education loans can come with high-interest rates, increasing the burden of repayment. When considering an education loan for MBBS interest rate, it's crucial to compare options and choose wisely to manage repayment effectively.
4. Limited Loan Amount
Students may struggle to secure the full amount needed for their education, leading to financial strain.
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Why Choose Propelld for Your Education Loan Needs?
Securing an education loan for your MBBS studies can be challenging, given the high competition and limited seats in medical colleges. But it's the most important step in your path of “how to become a doctor.”
Propelld understands these challenges and offers a seamless solution tailored to your needs.
Benefits of Propelld Education Loan
Choose Propelld for a hassle-free education loan experience and pave the way for your successful career in medicine!
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