Blog » Student Loan » Education Loan For MBBS Abroad 2025 – Check Eligibility & Interest Rates

Education Loan For MBBS Abroad 2025 – Check Eligibility & Interest Rates

By UniCreds •
March 9, 2021 •
Education Loan For MBBS

Pursuing an MBBS degree has become increasingly popular, with 80,000 students enrolling in medical colleges yearly.

However, the financial burden associated with medical education is substantial, with average annual costs ranging from ₹1,628 in government institutions like AIIMS to upwards of ₹20 lakhs in private colleges. 

Given these figures, many students turn to education loans as a viable solution to fund their studies. Abroad education loan interest rates for MBBS range from 8.55% to 13.70%, depending on the lender and loan type.

With flexible repayment options and higher loan amounts, education loans can significantly ease the financial strain on aspiring medical professionals.

This table compares the loan options with and without collateral from various banks –

NameInterest RateLoan amount
ICICI Bank9.85% – 10.5%Upto ₹2Cr (Collateral)Upto ₹1Cr (Without Collateral)
Union Bank of India10% – 10.5%Upto ₹75Lac (Collateral)Upto ₹40Lac (Without Collateral)An unsecured loan is only provided for listed universities.
IDFC9.5% – 10%Upto ₹2Cr (Collateral)Upto ₹75Lac (Without Collateral)
Avanse
10.5%
Upto ₹2Cr (Collateral)Upto ₹1Cr (Without Collateral)
Axis Bank9.9% – 10.5%Upto ₹2.5Cr (Collateral)Upto ₹75Lac (Without Collateral)

Understanding Education Loans for MBBS

Education loans are financial products specifically designed to help students manage the costs associated with their education.

For MBBS students, these loans can cover various expenses, including:

Expense CategoryDescription
Tuition FeesThe most substantial cost associated with medical education.
Accommodation ChargesExpenses related to living arrangements during the course.
Books and SuppliesEssential materials required for study.
Laboratory and Library FeesAdditional costs incurred during practical training.
Miscellaneous ExpensesThis may include travel costs, examination fees, and other personal expenses.

Benefits Of MBBS

Pursuing an MBBS degree abroad comes with a host of different benefits. We’ve highlighted some of them below – 

  • The standard of an MBBS degree is much higher abroad than in India. 
  • An MBBS degree abroad allows a person to understand the subject better.
  • Entry examinations such as IELTS and TOEFL don’t need to be taken. Students simply need a minimum of 50% in their 12th for Physics, Chemistry, and Biology to study MBBS abroad.
  • Physicians and surgeons in well-developed countries’ job development are estimated to be 7% from 2018 to 2028.
  • An MBBS degree from a top international university in one’s portfolio will add a great deal of value.
  • Apart from acquiring an international degree, pursuing your MBBS abroad will allow you to learn more about different cultures worldwide.

Types of Education Loans Available

types-of-education-loans

Education loans can be broadly categorised into two main types: secured and unsecured loans.

1. Secured Loans

Let’s begin by answering the following question: What are secured loans for MBBS students?

Secured loans require collateral—an asset the lender can claim if the borrower defaults. This could be property or other valuable assets.

Here are some key features of secured loans:

  • Loan Amount: The amount you can borrow often depends on the value of the collateral provided.
  • Interest Rates: Generally lower than unsecured loans due to reduced risk for lenders.
  • Repayment Period: Often extended, allowing for more manageable monthly payments.

Pros and Cons of Secured Loans

Pros:

  •   Lower interest rates.
  •   Higher loan amounts are available.
  •   Longer repayment periods.

Cons:

  •   Risk of losing collateral if you fail to repay.
  •   Lengthy approval process due to collateral evaluation.

2. Unsecured Loans

Unsecured loans do not require collateral but typically come with higher interest rates due to increased risk for lenders. Key points include:

  • Loan Limit: Generally up to ₹40 lakhs (depending on the lender).
  • Interest Rates: Start from around 9.55% per annum.
  • Repayment Duration: Up to 15 years, including a moratorium period during which no repayments are required.

Pros and Cons of Unsecured Loans

Pros:

  •   No risk of losing assets.
  •   Faster approval process since no collateral is required.

Cons:

  •   Higher interest rates.
  •   Loan amounts are lower compared to secured loans.

Eligibility Criteria | Education Loan For MBBS

It is important to note all the eligibility requirements while seeking an education loan for MBBS. An unsecured education loan is not granted to students who need financial backing to pursue an MBBS course abroad.

Public banks offer a secured overseas education loan for MBBS abroad at attractive interest rates to encourage students to pursue MBBS. However, these education loans come with their terms and conditions.

  • Students must have excellent academic performance throughout their educational careers. Students with backlogs in their academic profiles will not be deemed eligible for an education loan from government banks in India to study abroad.
  • The value of the collateral being pledged as security for a Master’s education loan should be higher than the actual education loan requirements.
  • Only individuals with a strong financial background can be named as co-applicants for an education MBBS loan for a Master’s.

UniCreds is an online education loan marketplace where students can find the best abroad education loan based on their academic profiles. Contact our education loan specialists today for a free consultation about MBA loans abroad!

How To Apply | Education Loan For MBBS

The education loan for the MBBS application process differs from country to country. However, UniCreds has devised a standardised application process for students.

Follow this process to ensure quick and easy funding for your MBBS abroad education loan.

  • You start with a pre-assessment that’s available on the UniCreds website.
  • Our education loan counsellor interacts with you to understand your financing needs in detail.
  • You fill out a detailed loan application form.
  • We transfer your details to the relevant bank/NBFC. You will receive an email acknowledging your application.
  • Get your loan sanctioned and wait for the disbursal of funds! 

Documents Required

At the time of application, UniCreds will provide you with a concise list of required documents based on your chosen course and study destination.

However, at a high level, the following documents are needed – 

Applicant’s Documents:

  • PAN card.
  • Aadhaar card – 2 pages.
  • Passport (First and last page).
  • 10th, 12th, BE or Higher degree transcripts incomplete.
  • Credit report.
  • Last 3 months payslips and 6 months banking-if applicable (In case of lockdown, at least one payslip and 1-month banking within the last 3 months to be submitted).
  • Admission letter.
  • Passport-size photo.

Co-Applicant’s Documents:

If Salaried –

  • PAN card.
  • Aadhaar card 2 pages.
  • Residence proof.
  • The last three months’ payslips and six months’ salary credits banking (In case of lockdown, at least one payslip and one month of banking within the last three months must be submitted).
  • Form 16 for the last 2 years.
  • Credit report.

If Self-Employed – 

  • PAN card.
  • Aadhar card 2 pages.
  • Residence proof.
  • Individual ITR for the last 2 years, including computation of income, trading and P/ L account, and balance sheet.
  • Latest 6 months of individual banking (In case of lockdown, at least 3 months of the latest banking to be submitted).
  • CIBIL report.

Common Challenges Faced by Applicants

Students often encounter various challenges when applying for education loans:

Documentation Issues

Incomplete or incorrect documentation can delay processing times significantly. It is crucial to double-check all documents before submission.

Collateral Requirements 

Some students may struggle to provide the necessary collateral for secured loans, especially if they do not have readily available family assets.

High Interest Rates on Unsecured Loans 

The cost of borrowing can be significantly higher without collateral, making it essential to weigh your options carefully before committing.

Benefits of Taking an Education Loan Through UniCreds

Securing an education loan through UniCreds offers streamlined access to financing for overseas studies, combining convenience with competitive terms.

Here are the key benefits:

  • No collateral required: Loans are approved without pledging assets, relying instead on academic merit and a co-applicant’s creditworthiness.
  • Quick processing and approval: Loans are sanctioned in as little as 48 hours for eligible applicants.
  • Competitive interest rates: Rates start at 8.99% p.a., with UniCreds negotiating lower rates on behalf of students.
  • Expert guidance: Dedicated loan consultants assist with eligibility checks, document preparation, and lender comparisons, ensuring tailored solutions.
  • Zero service fees: UniCreds provides free end-to-end assistance, including document uploads and application tracking, without hidden charges.
  • Tax benefits: Interest paid on loans is tax-deductible under Section 80E of the Income Tax Act.

By simplifying complex procedures and offering cost-effective terms, UniCreds enables students to focus on academic goals rather than financial barriers.

Tips for Securing an Education Loan

To improve your chances of securing an education loan that suits your needs, consider the following tips:

TipDescription
Maintain a Good Credit ScoreA higher credit score will help you get better loan terms and interest rates. Manage existing debts responsibly before applying.
Prepare ThoroughlyEnsure all documentation is without any errors. Double-check forms for mistakes and include all required documents.
Choose Specialised LendersSome banks focus on education loans specifically and may offer more favourable terms compared to general personal loan providers.
Seek GuidanceConsult with financial advisors or mentors who have experience in securing education loans for valuable insights into the application process.

Scholarships Available for MBBS Students

In addition to education loans, several scholarships are available that can help alleviate financial burdens:

Central Sector Interest Subsidy Scheme (CSIS)

This scheme is designed for economically weaker sections covering interest during the moratorium period while students are studying.

State Government Scholarships

Various states offer scholarships based on merit or financial need; these can significantly reduce overall educational expenses.

Institution-Specific Scholarships

Many medical colleges provide scholarships based on academic performance or entrance exam results; researching these opportunities early can open doors for financial assistance.

Trust UniCreds for MBBS Education Loans

Securing an education loan for your MBBS journey is crucial to achieving your dreams of becoming a doctor.

At UniCreds, we are dedicated to making this process seamless and efficient, offering tailored solutions that cater to your unique needs.

With our digital application process and competitive interest rates, we ensure you receive the financial support necessary to focus on your studies. Trust us to help you fund your education and pave the way for a successful medical career .

FAQs

1. What maximum loan amount can I secure for an MBBS education?

The maximum loan amount for pursuing MBBS can vary significantly based on the lender and whether the loan is secured or unsecured. Generally, unsecured loans can go up to ₹40 lakhs, while secured loans may offer amounts up to ₹2 crores, depending on the value of the collateral provided.

2. What are the interest rates typically associated with MBBS education loans?

The interest rates for education loans for MBBS students typically range from 8.55% to 13.70%, depending on whether the loan is secured or unsecured. Secured loans usually have lower rates due to reduced risk for lenders, while unsecured loans tend to have higher rates.

3. Is a co-applicant required for an education loan for MBBS?

Yes, most lenders require a co-applicant when applying for an education loan for MBBS. This co-applicant is often a parent or guardian who can provide additional financial backing and support the application process.

4. When does the repayment period begin after securing an education loan?

The repayment period for education loans typically begins after the completion of the course. Many lenders also offer a moratorium period that includes the duration of the course plus an additional 6 to 12 months, allowing graduates time to secure employment before starting repayments.

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