Get Abroad Education Loan At Affordable Interest Rates

Your Guide To An Education Loan For MBBS

Pierre Noronha
March 9, 2021
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5 min read
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Last Updated: January 2, 2024

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A career in medicine is no doubt, a noble profession, however, pursuing an MBBS course in India is not as straightforward as some of the other popular courses. Firstly, the cost of pursuing an MBBS course in India is quite high. Then there’s the added difficulty in obtaining a medical seat in some of the prestigious medical colleges in India. All of these reasons drive many Indian students towards overseas institutions to pursue their MBBS course. As a result, students resort to an abroad education loan for MBBS. This blog will give you a complete rundown on all the elements involved in securing an MBBS education loan.

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 it is in India.

An MBBS degree abroad allows a person to get understand the subject better.

Entry examinations such as IELTS and TOEFL don’t need to be taken. Students simply need a minimum of 50 percent in their 12th for Physics, Chemistry, and Biology to study MBBS abroad.

Job development is estimated to be 7 percent from 2018 to 2028 for physicians and surgeons in well developed countries like the USA.

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 know more about different cultures around the world.

Most foreign countries that deliver MBBS programmes come from Europe, where living costs are relatively low. If we speak about Russia, the total monthly living costs, including all overhead expenses, are anywhere between 100-150 USD.

Types Of Loans | Education Loan For MBBS

Student loan for MBBS Education loans are primarily divided into 2 types –

Unsecured education loan
Secured education loan

In an unsecured MBBS loan, the lender takes more of a risk by making this loan, because there is no asset to recover in case of default. As a result, the interest rates are quite high. A lender may afford you an unsecured loan if he/she thinks you have the financial resources to repay the loan. Generally speaking, the loan amount in unsecured loans is lesser than secured loans. The rate of interest on an unsecured education loan for MBBS abroad can range from 11.5% to 14.9%. On the other hand, in a secured education loan, an asset is pledged with the lender by a borrower in order to obtain some kind of loan. Assets such as a house, car, gold, stocks, bonds, or personal property, etc can be used as collateral. The lender will hold the deed or title of the asset until the loan amount is paid in full. A secured loan is the most widely used way to borrow large amounts of money. The rate of interest on an education loan for MBBS varies between 9% and 10%.

Eligibility Criteria | Education Loan For MBBS

It is important to make note of 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 rates of interest in order to encourage students to pursue MBBS. However, these education loans come with their own set of terms and conditions.

Students have to have excellent academic performance throughout their academic career. This means that students having backlogs in their academic profile will not be deemed as eligible for an education loan for abroad studies from government banks in India.
The value of the collateral being pledged as security for a Master’s education loan should be higher than the actual education loan requirements.
Individuals having a strong financial background only can be named as co-applicants for an education MBBS loan for Master’s.
For students who need an education loan for MBBS in countries like China and Ukraine, there are special rules and regulations. For eg. SBI education loan which is considered to be the best bank for education loan in India requires students to take a country deviation to be able to fund their MBBS courses in such countries.

UniCreds is an online education loan marketplace where students can find the best education loans based on their academic profiles. Get in touch with our education loan specialists today for a free consultation for a loan for mbbs abroad!

How To Apply | Education Loan For MBBS

The education loan for MBBS application process differs from country to country, however, UniCreds has devised a standardized 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 a detailed loan application form.
We transfer your details to the relevant bank/NBFC. You receive an email acknowledging your application.
Get your loan sanctioned and wait for 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.
Last 3 months payslips & 6 months’ salary credits banking (In case of lockdown at least one payslip and 1-month banking within the last 3 months to be submitted).
Form 16 for the last 2 years.
Credit report.
Additional income if any proof of the same.

If Self Employed –

PAN card.
Aadhar card 2 pages.
Residence proof.
Individual ITR for last 2 years with Computation of Income, Trading and P/ L account, Balance sheet.
Latest 6 months individual banking (In case of lockdown at least 3 months latest banking to be submitted).
CIBIL report.
Additional income if any proof of the same.

FAQs

1.How much education loan can I get for MBBS?

Government banks offer education loans of up to 1.5 crores to students for MBBS. Students are required to pledge collateral with a value equal to or greater than 1.5 crores.

2.What is the interest rate of an education loan for MBBS?

Since many banks offer a moratorium period, low documentation, and a simple application process that can be completed online, education loans are one of the best ways to fund your higher education in the field of medicine in India. The annual interest rate of an education loan for MBBS in India is 7.95%, with a maximum repayment period of 15 years.

3.Why don’t NBFCs grant unsecured education loans for MBBS courses?

Students who require financial assistance to pursue an MBBS course abroad are not eligible for an unsecured education loan. Private lenders, such as private banks and NBFCs, generally do not fund courses that require students to complete them over a longer period because these lenders want to see a return on their investment as soon as possible.

If you’re someone who wants to share your valuable experiences through a blog, we’re more than happy to collaborate. Write to us at contact@unicreds.com to know more about our guest-post submission process.