Education Loan for MBBS - Check Eligibility & Interest rates

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

‍

Boggled with the complex documentation and processes at banks? 

Apart from these banks, there are a few NBFCs too that provide hassle free education loans for MBBS through minimal documentation and simple processes. One such NBFC is Propelld that provides education loans at a rate 10 times faster than banks. 

Check out the loans provided by NBFCs, that are simple, fast and efficient.: NBFC Education Loan - Top best loans in India (2024 Updated)

‍

Get your Loan Disbursed 10 times Faster than Banks. Apply Now.

‍

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.

‍

Click here for Higher Chances of Approval than Banks - Propelld Education Loan

‍

‍

Eligibility Criteria for MBBS Education Loans

The basic eligibility criteria for MBBS education loans across most lenders are: 

‍

Minimal Documentation. No Collateral Required. Hassle Free Education Loans Disbursed in Just 7 Days. Apply Now.

‍

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

‍

‍

1. Research and select a suitable lender.
2. Gather and organize required documents.
3. Fill out the application form accurately.
4. Ensure you meet all eligibility criteria.
5. Submit the application along with the required documents.
6. Follow up with the lender regularly for updates.

Tips for a Successful Loan Application

1. Maintain a good credit score.
2. Have a clear repayment plan.
3. Choose a lender specializing in education loans.
4. Provide all required documents promptly and accurately.
5. 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.

‍

Get Education Loan up to 50 lacs. Competitive Interest Rates. Easy Online Processes. Apply Now. 

‍

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:

‍

Get your Loan Disbursed 10 times Faster than Banks. Apply Now.

‍

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.

‍

Rejected by Banks for Education Loan? Don't Worry, Propelld has Got Your Back. Check Your Eligibility Now!

‍

‍

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!

FAQs About Education Loan for MBBS

Can I get an education loan for pursuing MBBS in India?

Yes, most banks and financial institutions in India offer education loans for students pursuing MBBS or other medical courses, covering tuition fees, hostel fees, books, equipment, and other related expenses.

What are the eligibility criteria for an education loan for MBBS?

Applicants must be Indian citizens, over 21 years old, and have secured admission in a recognized medical institution in India. The exact eligibility criteria can vary slightly between lenders.

How much loan amount can I get for an MBBS course?

The loan amount depends on the institution, fee structure, and the lender's policies, with some lenders like Finnable offering up to Rs. 10 lakhs for MBBS courses.

Do I need a co-signer or collateral for an education loan for MBBS?

Requirements vary among lenders. Some, like Finnable, require a co-applicant, which can be the guardian or parent of the applicant, but the need for collateral can differ.

When do I start repaying my education loan for MBBS?

Repayment typically begins after the completion of the course. Some lenders, such as Propelld, offer a repayment period extension up to a few  years after graduation.

Can I get 50 lacs education loan for MBBS?

Yes, NBFCs like Propelld provide hassle free education loans up to 50 lacs. 

Upto what limit can I get SBI education loan for MBBS in India? 

You can get an education loan upto 30 lacs for an MBBS in India. 

Is there any pre-payment penalty for my education loan? 

Usually, the lenders do not charge any prepayment penalty. However, it's always best to confirm the latest regulations with your lender. 

Are there any tax benefits on education loan for MBBS? 

Education loans that are taken on behalf of your children, spouse, or a student for whom you are the legal guardian and are eligible for tax deduction under section 80E of the Income Tax Act. 

This is for interest paid on the loan and can be availed once the interest starts on the loan. This deduction is available until the interest amount is fully paid or for a maximum of 8 years, whichever comes earlier.