Education Loan for MBBS at the Lowest interest rates
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Pursuing an MBBS is a lifelong goal for many students, but the high cost of medical education can be challenging for families.
An education loan for MBBS helps bridge this gap by covering tuition fees, accommodation, and other essential expenses, allowing students to focus on their academics without financial stress.
For those planning to study in another country, an education loan for MBBS abroad can make quality international education more accessible.
With flexible repayment options, it provides students with the opportunity to achieve their dream of becoming a doctor without compromising on their choice of institution.
Understanding the Cost of Studying MBBS Abroad
Studying MBBS abroad is an exciting opportunity, but it comes with a range of expenses that require careful planning.
Understanding the different costs involved, from initial pre-arrival fees to tuition charges and daily living expenses, helps students and their families prepare financially and choose the right education loan for MBBS abroad.
Pre-arrival Costs for MBBS Abroad
Before you embark on your journey to study MBBS abroad, there are several initial expenses you should be aware of. These include the fees for required entrance exams such as NEET, application charges for universities, visa processing fees, airfare for your travel, and sometimes additional documentation or consultancy charges.
Most education loans for MBBS abroad generally do not cover these pre-arrival costs, so it's important to budget for them separately.
|
Expense |
Estimated Cost |
|
NEET registration |
INR 1,600 |
|
University application fees |
INR 2,000 – 10,000 |
|
Visa fees |
INR 4,000 – 60,000 |
|
Airfare (one-way) |
INR 30,000 – 75,000 |
|
Other documentation/consultancy |
INR 5,000 – 20,000 |
Tuition Fees for MBBS Abroad
Tuition fees are the primary and most significant expense while studying MBBS abroad. These fees vary depending on the country and university you choose for your medical education.
Countries like Russia, China, and Ukraine tend to have lower tuition fees, whereas the USA and the UK are among the more expensive destinations.
Understanding these variations will help you plan your finances better and decide the education loan amount you might require.
|
Country |
Tuition Fee (Total) |
Programme Duration |
|
Russia |
INR 15 – 35 Lakhs |
6 years |
|
China |
INR 18 – 30 Lakhs |
5 – 6 years |
|
Ukraine |
INR 20 – 35 Lakhs |
6 years |
|
Philippines |
INR 22 – 35 Lakhs |
5.5 years |
|
USA |
INR 60 Lakhs – 1.5 Cr |
4 – 6 years |
|
UK |
INR 50 Lakhs – 1 Cr |
5 – 6 years |
|
Georgia |
INR 25 – 40 Lakhs |
6 years |
Living Costs Abroad (Annual)
In addition to tuition fees, living expenses constitute a major part of your total cost while studying abroad.
These costs include accommodation, food, transportation, healthcare, and other daily necessities.
Living expenses can vary greatly depending on the country and city, with places like the USA and UK generally having higher costs compared to countries like Russia or China.
Considering these costs accurately is essential for planning your student loan for MBBS abroad and ensuring you have sufficient funds to cover your stay.
|
Country |
Living Cost per Year |
|
Australia |
INR 12 - 20 Lakhs |
|
Canada |
INR 10 - 18 Lakhs |
|
USA |
INR 15 - 25 Lakhs |
|
UK |
INR 12 - 20 Lakhs |
Types of Education Loans Available for MBBS Abroad
When planning to study MBBS abroad, understanding the types of education loans available can help you choose the right financial solution.
Education loans are typically divided into secured and unsecured categories. Secured loans require collateral, which affects the loan amount and approval process.
Types of secured loans commonly offered for student loan for MBBS abroad include:
- Loan Against Property (LAP): Uses residential or commercial property as collateral, allowing loans up to 70-90% of the property's value, often reaching up to INR 3 crores. This option offers lower interest rates, longer repayment tenures (10–15 years), and relatively high approval chances.
- Loan Against Fixed Deposits (FDs): Uses existing bank fixed deposits as security, generally lending up to 90-95% of the deposit amount. This loan type provides quick approval, minimal documentation, and some of the lowest interest rates.
- Loan Against Insurance Policies: Allows borrowing against eligible life insurance policies with a surrender value, offering loans up to 80-90% of that value. It features a simple process, moderate interest rates, and fast disbursal.
- Loan Against Government Bonds/Securities: Uses bonds, debentures, or approved securities as collateral, typically lending up to 80-90% of the market value. It comes with competitive interest rates and relatively easy documentation.
Financial Institutions Offering Education Loans for MBBS
When it comes to funding your MBBS studies abroad, several financial institutions offer education loans tailored to meet the needs of aspiring medical students.
These loans come with varying interest rates, repayment tenures, and collateral requirements.
Students often prefer government-backed bank loans due to their lower interest rates and relaxed repayment terms.
Additionally, many lenders offer collateral-free loans up to certain limits if you have secured admission to a recognised MBBS university abroad.
Indian Banks for MBBS Abroad Education Loans
Indian banks are a popular choice for students seeking education loans for MBBS abroad.
Among them, the State Bank of India (SBI) education loan for MBBS is highly regarded for its competitive interest rates and flexible repayment options.
Other major banks such as ICICI Bank and Bank of Baroda also provide specialised loan schemes that cover tuition and living expenses for MBBS studies overseas, often with attractive moratorium periods and government subsidies in some cases.
|
Feature |
Axis Bank |
ICICI Bank |
Bank of Baroda |
|
Covers MBBS Abroad |
Yes |
Yes |
Yes |
|
Collateral-Free Limit |
Up to INR 75 Lakhs |
Up to INR 1 Crore |
Up to 8 Lakhs |
|
Interest Rate (Approx.) |
9.5% – 10% |
10% |
8.75% – 10.25% |
|
Moratorium Period |
6 to 12 Months post course |
6 to 12 Months post course |
12 Months post course |
|
Loan Processing Time |
7 days |
1-5 days |
Up to 18 days |
|
Subsidy Eligibility |
Yes |
No |
Yes (Government Schemes) |
|
Pre-Visa/Pre-Admission Sanction |
Limited |
Yes (Case-based) |
Limited |
NBFCs for MBBS Abroad Education Loans
Non-Banking Financial Companies (NBFCs) offer an alternative with easier processing and flexible terms, often covering 100% of tuition and living expenses for MBBS abroad.
NBFCs like Credila Financial Services and Avanse Financial Services specialise in education loans for overseas studies, providing collateral-free loans up to high limits and quick sanction processes, including pre-visa approvals.
|
Feature |
Credila Financial Services |
Avanse Financial Services |
|
Covers MBBS Abroad |
Yes (100% tuition & living) |
Yes (Holistic 100% coverage) |
|
Collateral-Free Limit |
Up to INR 75 Lakhs unsecured |
Often up to INR 1 Crore unsecured (Case-based) |
|
Interest Rate (Approx.) |
10.25% |
15% |
|
100% Cost Coverage |
Yes |
Yes |
|
Moratorium Period |
Course period + 1 Year |
Course period + 12 Months |
|
Loan Processing Time |
3 days |
5 days (Fast-track option) |
|
Pre-Visa/Pre-Admission Sanction |
Yes (Visa secured) |
Yes (Visa & Admission secured) |
International Lenders for MBBS Abroad Education Loans
While Indian banks and NBFCs dominate the market for MBBS education loans, some international lenders and financial service firms also offer education loans.
These lenders often provide competitive interest rates and flexible repayment options tailored for international students, but eligibility criteria and collateral requirements vary widely.
Many students consider them as an option when Indian financial products don’t fully meet their needs or for funding studies in specific countries.
Government Schemes Aiding MBBS Abroad Loans
The Government of India provides several schemes to support students pursuing MBBS abroad.
These programmes aim to make higher education affordable and accessible for diverse student communities.
The key schemes available are:
|
Government Scheme |
Description |
Loan Amount / Benefits |
|
Credit Guarantee Fund Scheme for Education Loans (CGFSEL) |
Enables students to avail loans without collateral or co-applicants, supporting meritorious students from economically weaker sections. |
Up to INR 7.5 lakhs |
|
National Minorities Development & Finance Corporation (NMDFC) |
Provides subsidised loans at low interest rates for students from minority communities pursuing studies abroad. |
Up to INR 20 lakhs |
|
National Scheduled Castes Finance and Development Corporation (NSFDC) |
Supports MBBS studies abroad with special interest rebates for women beneficiaries from scheduled castes. |
Up to INR 30 lakhs or 90% of course fee |
|
Central Sector Interest Subsidy (CSIS) Scheme |
Offers interest subsidies during the moratorium period for students from economically weaker sections, reducing overall loan burden. |
Interest subsidy during moratorium period |
Eligibility Criteria to Apply for MBBS Education Loan
- Nationality: The applicant must be an Indian citizen, which is mandatory for most education loans offered by Indian banks and financial institutions.
- Age Limit: Generally, the applicant should be between 16 and 35 years old at the time of application. Some lenders may have flexible age criteria depending on course duration and repayment capabilities.
- Admission Confirmation: A confirmed admission letter from a recognised MBBS college or university in India or abroad is essential. The university should ideally be recognised by the National Medical Commission (NMC) or equivalent regulatory body in the destination country.
- Academic Performance: Students must have completed 10+2 with at least 50-60% marks in core subjects - Physics, Chemistry, and Biology. Qualifying NEET (National Eligibility cum Entrance Test) is mandatory to apply for MBBS courses in India and many countries abroad.
- Course Eligibility: The loan is granted for professional medical courses, mainly MBBS, and covers tuition fees, living expenses, travel, and other study-related costs.
- Co-applicant Requirements: A co-applicant, such as a parent, guardian, or spouse with a stable income source must accompany the loan application. The co-applicant’s creditworthiness plays a key role in loan approval and terms.
- Collateral/Security: Loans up to INR 7.5 lakhs may often be collateral-free, but higher loan amounts typically require collateral such as property, fixed deposits, or approved securities. Some lenders may also accept government bonds or insurance policies as security.
- Credit Score: A good credit score (usually 700 or above) for the co-applicant enhances approval chances and can lead to better interest rates. Poor credit history may lead to rejection or higher interest rates.
- Repayment Capacity: The lender evaluates the income and repayment capacity of the co-applicant to ensure the loan can be serviced comfortably over the agreed tenure.
- Documentation: Submission of key documents is mandatory and includes an admission letter, identity and address proof (Aadhaar, PAN card, passport), academic transcripts, income proof (salary slips, IT returns), bank statements, and photographs.
- Additional Requirements: Some lenders may require a detailed course fee structure and visa approval if the course is abroad. Certain lenders may provide pre-admission or pre-visa sanction to ease the student’s admission and visa process.
Documents Required To Apply For a Student Loan for MBBS Abroad
|
Document |
Description |
|
Completed Loan Application Form |
Filled out accurately and signed by the applicant and co-applicant. |
|
Proof of Identity |
Any one of Aadhaar Card, PAN Card, Passport, Voter ID, Driving License. |
|
Proof of Address |
Recent utility bill, Aadhaar Card, Passport, Driving License, or Voter ID. |
|
Academic Records |
10th and 12th mark sheets or certificates; Entrance exam scorecard (e.g., NEET); Admission/offer letter specifying course and fees. |
|
Proof of Income of Co-applicant |
For salaried: last 3-6 months salary slips, Form 16, recent IT returns, bank statements; For self-employed: last 2 years ITRs, CA certified balance sheets, bank statements. |
|
Photographs |
Passport-sized photos of both applicant and co-applicant. |
|
Collateral Documents |
If loan exceeds collateral-free limit (usually INR 7.5 lakhs), provide proof like property documents, fixed deposit receipts, or other securities. |
|
Additional Documents |
PAN card copies for applicant & co-applicant, passport copy for abroad studies, 6-12 months bank statements, visa copy (when obtained), and any other lender-required documents. |
Things to Know Before Applying For a Student Loan for MBBS Abroad
- Understand the Total Cost: Apart from tuition fees, factor in expenses like living costs, travel, insurance, and pre-arrival charges. This helps estimate the loan amount realistically.
- Loan Amount and Coverage: Most lenders offer education loans for MBBS abroad covering tuition fees, accommodation, exam fees, travel, and sometimes study materials. Loan amounts typically range from INR 20 lakhs to INR 3 crores, depending on the country and institution.
- Collateral Requirements: Loans up to a certain limit (usually INR 7.5 lakhs) may be collateral-free, but higher amounts often need security like property, fixed deposits, or insurance policies.
- Interest Rates and Moratorium: Education loans generally have competitive interest rates ranging from 8% to 14%. The moratorium period extends during the course duration, plus an additional 6 to 12 months post-completion before repayment starts.
- Repayment Tenure: Repayment tenure can be flexible, typically up to 10-15 years, based on lender terms and loan size.
- Eligibility Criteria: Ensure you meet age, academic, admission, and co-applicant requirements before applying to avoid delays.
- Pre-visa or Pre-admission Sanction: Some lenders offer pre-visa sanction, enabling you to secure loan approval before visa issuance, thereby easing your admission process abroad.
- Documentation: Keep all important documents ready, including admission letter, academic certificates, identity proof, income proof of co-applicant, and collateral papers if applicable.
- Processing Time: Loan processing time can vary from 7 to 21 days; applying early is beneficial.
- Read the Terms Thoroughly: Understand processing fees, prepayment options, penalties, and other loan terms to avoid surprises later.
- Choose the Right Lender: Compare interest rates, processing fees, repayment flexibility, and customer service before finalising the loan provider.
How to Apply for an Education Loan for MBBS Abroad?
When you apply for an education loan to study MBBS abroad, following a clear and structured process can ease your journey.
Here’s a step-by-step guide on how to apply for an MBBS education loan.
- Check your eligibility for an MBBS education loan through the UniCreds platform.
- An expert from UniCreds will contact you promptly to guide you through the loan process and suggest lenders that match your needs.
- Submit the required documents online or in person, depending on the lender’s instructions.
- The lender carries out document verification, which generally takes 7 to 15 days.
- Upon approval, you will receive a loan sanction letter and can monitor your loan status via the UniCreds dashboard.
- After signing the loan agreement, the disbursal process begins, with funds transferred directly to your university or personal account.
Why Choose UniCreds for an MBBS Abroad Education Loan?
Finding the right education loan for your MBBS abroad studies is a critical step towards a successful medical career.
UniCreds offers comprehensive support to simplify this process and ensure you secure the best loan without unnecessary delays or hidden costs.
- Fund Your MBBS Completely: Get loans that cover 100% of your MBBS tuition fees and living expenses with no upfront payments required.
- Zero Margin Money: Start your studies without any initial deposits or advance fees, easing financial pressure.
- Quicker Approvals: Work with lenders who understand the medical education timeline and prioritise fast loan sanctioning.
- Loans Tailored to You: Receive personalised loan recommendations based on your chosen university, course specifics, and co-applicant profile.
- Compare Multiple Lenders: Access offers from top banks, NBFCs, and international lenders in one place to find the best fit.
- Real-Time Loan Tracking: Stay informed on every stage of your loan application through the UniCreds dashboard.
- Collateral-Free Options: Benefit from unsecured loans based on your eligibility and the co-applicant’s financial standing.
- Fully Online & Paperless: Complete your application and document submission digitally without any physical paperwork.
- No Service Charges: Enjoy expert support throughout your loan process with zero fees.
How to Choose the Right Lender for an MBBS Student Loan?
Choosing the right lender is essential to secure the best education loan for your MBBS studies abroad.
A thorough comparison helps you avoid unexpected costs and ensures favourable loan conditions.
Keep these key factors in mind when selecting a lender:
Interest Rates
Opt for lenders offering the lowest interest rates possible. Even a slight difference can significantly impact your total repayment amount over the loan tenure.
Coverage of Expenses
Check which expenses the loan covers. Some loans not only pay tuition fees but also include living expenses, travel costs, examination fees, and study materials, giving you comprehensive financial support.
Processing Fees
Review the processing fees charged by lenders. Lower fees reduce upfront costs and the overall financial burden of your loan.
Tax Benefits
Confirm whether the loan qualifies for tax deductions under Indian income tax laws, such as deductions on the interest paid. This can help ease your repayment burden.
Loan Margin (Margin Money)
Understand the margin money - the portion of expenses you must pay upfront before the loan is sanctioned. A smaller margin means less initial out-of-pocket expense for you.
Approval and Disbursal Time
Choose lenders known for faster loan approval and disbursal, especially if your MBBS course has a fixed start date. Timely disbursal is critical to avoid admission or visa delays.
Prepayment Options
Check if the lender permits early repayment without penalties. Prepaying your loan when possible can reduce the total interest paid and shorten the loan term.
Frequently Asked Questions
