Education Loan for Medical Studies Abroad

Types of Education Loan for Medical Studies

Education loans can be categorised based on various factors. Here are some types of education loans:

1. Based on Location

• Domestic Education Loan: This type of education loan is for Indians who desire to pursue higher education within India.
• Study Abroad Education Loan: This type of education loan is for Indians who desire to pursue higher education outside India.

2. Based on the Course of Education

• Undergraduate Education Loans: This type of loans are specifically designed to cater to the needs of the students who want to pursue an undergraduate degree. The student must have passed his or her 12th grade to apply for this.
• Postgraduate Education Loans: This type of loans are specifically designed for the students who want to pursue a postgraduate degree. The student must have his or her undergraduate degree to apply for this.

3. Based on Collateral

• Deposit-Backed Loan: Use your recurring deposits, fixed deposits, or other acceptable deposits as collateral.
• Property-Backed Loan: Pledge your property, like a house, flat, or land, for the loan.
• Securities-Backed Loan: Use securities like debentures, bonds, or equity shares as security.
• Third-Party Guarantee: Get a loan with a relative or friend as a guarantor.

Career Education Loan:

A Career Education Loan is a type of loan designed for working professionals seeking to enrol in advanced professional courses at either national or international colleges/universities. It is aimed at improving their employment prospects by upgrading their skills and qualifications. Essentially, it is for individuals looking to pursue career-focused undergraduate programs at recognised technical or vocational institutions.

Loans for Parents:

Loans for parents are offered by banks as unsecured loans to parents or adult relatives to cover various educational expenses incurred by their children. These expenses typically include tuition fees, accommodation costs, books, uniforms, and transportation expenses. These loans enable parents and relatives to support their children’s education at both national and international educational institutions.

Read More – Essential Checklist for Students Going to Study Abroad

Education Loan for MBBS EMI Calculator

Once you have selected the type of loan most suitable for your needs, you must use an EMI calculator to gain useful insights for budget planning, loan comparison, interest cost understanding, and repayment strategy.

You can use HiWiPay accurate online EMI calculator. All you need to do is enter the loan amount, interest rate, loan period, course duration, moratorium period, and payment during the moratorium. Once you have entered all the details, you will get the amount you will need to pay per month to pay the loan.

Using an EMI calculator before getting a study abroad education loan can be very beneficial for several reasons:

• Accurate EMI Calculation: If you calculate your EMI manually, you might make a mistake and calculate incorrectly. But if you leverage HiWiPay online EMI calculator, you will get accurate calculations for your monthly instalments. 

• Budget Planning: An EMI calculator helps you understand the monthly financial commitment you will be making towards loan repayment. This can assist you in planning your budget effectively.

• Loan Comparison: An EMI calculator allows you to compare different loan options on the basis of the EMI you would have to pay. It will allow you to choose the most affordable and suitable option.

• Interest Cost Understanding: It will break down your payment into principal and interest components. It will help to understand how much of your EMI will go towards repaying the loan and how much will go towards interest.

• Repayment Strategy: Once you know your EMI amount, you can plan your repayment strategy for early repayment and save on interest.

• Time-saving and Convenient: Manual calculations are prone to errors and are time-consuming. With HiWiPay online EMI calculator, you can save time and get accurate results.

Education Loan For MBBS In Abroad

Several banks across India offer education loans for MBBS abroad. Here’s a brief overview of its details:

Loan Parameter	Details
Loan Limit	Up to 40 Lakhs Unsecured  Up to 2 Crores Secured
Expenses covered	Academic Expenses: Tuition Examination/Library/Laboratory fees Purchase of Books/Equipment Living Expenses Additional Expenses: Travel expenses Purchase of computers/laptops Overseas insurance Cost of health insurance
Accepted Co-applicant	Parents, parents-in-law, spouse, sibling
Interest Rate	With Collateral: Starts from 8.55% Without Collateral: Starts from 8.55%
Moratorium Period	Course duration + 12 months
Repayment Duration	Around 15 years, including the moratorium period

 

Please note that the terms and conditions of these loans can vary, and it is important to read and understand all the details before applying. It is also a good idea to compare different loan options to find the one that best suits your needs. 

Top Banks That Offer Secured Education Loans For MBBS in Abroad

Here are different education loans for medical students offered by the top banks: 

Bank	Minimum Loan Amount	Maximum Loan Amount	Interest Rate (Floating)	Processing Fees	Moratorium Period	Repayment Duration
State Bank of India (SBI)	INR 7.50 Lakhs	INR 1.5 Cr	8.15% p.a. onwards	INR 10,000 per application	1 year after the course is complete or six months after getting a job, whichever is earlier	15 years
Bank of Baroda	Not specified	INR 150.00 lakh	8.15% p.a. onwards	No processing charges up to INR 7.50 lakh 1% of loan amount up to INR 10,000	Course duration + 1 year	15 years
Axis Bank	Not specified	INR 75 lakhs	13.70% p.a. onwards	2% of the loan amount	Not specified	15 years
HDFC Bank	Not specified	INR 1.5 crore	As per the criteria of the bank	1.5% of the total loan amount	Course duration + 1 year	14 years

Documents Required For Education Loan for MBBS

Here are the documents typically required for an education loan for MBBS:

• Identity and address proof of student or co-signer (Driving license, passport, Aadhaar card)
• Copy of passport
• Passport-size photographs of applicant/co-signer (Two copies)
• Mark sheet of 10th, 12th, graduation, entrance exam result, or an equivalent credential.
• Offer letter/admission letter/ID card (if available)
• Bank statements, income tax returns, and other relevant financial documents.
• Copy of collateral documents
• Demand letter from college or university.
• Form A2 signed by applicant or co-signer.

Please note that the exact documents required may vary depending on the bank or financial institution providing the loan. It is always a good idea to check with them directly for the most accurate information. 

Eligibility Criteria for an MBBS Education Loan in India

To qualify for an MBBS Education Loan in India, you generally need to meet these requirements:

1. Age: You must be at least 18 years old when you apply for the loan.
2. Citizenship: You must be an Indian citizen.
3. Admission: You should have secured admission into your desired university/course, backed by an official admission letter from a recognised Indian university for a full-time MBBS program.
4. Academic Performance: It is important to have a good academic track record.
5. Income: Some banks may require either the applicant or their co-applicant to have a minimum income.
6. Collateral: If you are opting for a secured loan, you will need to provide collateral as security.

Please note that the exact eligibility criteria can vary depending on the bank or financial institution providing the loan, so check with them directly for accurate information.

Special Education Loan Schemes for MBBS

There are several special education loan schemes for MBBS students in India. Here are a few examples:

1. SBI Global Ed-Vantage Scheme: Tailored for full-time MBBS students, offering loans up to INR 1.5 Crore with a repayment period of 15 years.
2. Axis Bank Education Loan: Provides up to INR 75 Lakhs for Indian MBBS students without needing collateral for loans under INR 40 Lakhs.
3. HDFC Credila Education Loan: Customized loans covering 100% of MBBS expenses like tuition and hostel fees.
4. Bank of Baroda Scholar Loan Scheme: Offers up to INR 80 Lakhs with a repayment period of 15 years for professional courses like MBBS.
5. Canara Bank’s Super Loan Scheme: Grants up to INR 75 Lakhs with interest concessions for female MBBS students in India.

Issues Faced By Students When Applying Directly For an Education Loan For MBBS

Applying for an education loan for MBBS can be a complex process, and students may face several challenges:

1. Lack of Knowledge: Many students need more knowledge about the loan application process, eligibility criteria, required documentation, and terms and conditions of the loan. This can lead to confusion and mistakes during the application process.
2. Credit Score: A student’s credit score or the credit score of their parents (in the case of a co-applicant) can significantly impact the approval of the loan. A low credit score can lead to rejection of the loan application or higher interest rates.
3. High-Interest Rates: Education loans, especially for professional courses like MBBS, can have high-interest rates. This can increase the financial burden on the student and their family.
4. Limited Loan Amount: Sometimes, the loan amount offered by the bank may only cover some of the expenses related to the course, such as tuition fees, hostel charges, examination fees, etc. This can put additional financial stress on the student and their family.
5. Lengthy and Complex Process: The loan application process can be lengthy and complex, with numerous documents to be submitted and multiple stages of approval. This can be daunting for students and their families.
6. Collateral Requirement: For high-value education loans, banks often require collateral security, which many students may not be able to provide.

To overcome these challenges, it is important for students and their families to do thorough research, understand the terms and conditions of the loan, maintain a good credit score, and explore different loan options before making a decision. 

FAQs on Education Loan for Medical Studies

References: 

Works Cited

“Baroda Scholar.” Www.bankofbaroda.in, www.bankofbaroda.in/personal-banking/loans/education-loan/baroda-scholar. Accessed 24 Apr. 2024.

“Education Loan for MBBS – Eligibility and Interest Rates.” WeMakeScholars, 9 Feb. 2023, www.wemakescholars.com/education-loan/mbbs#widget-1104. Accessed 24 Apr. 2024.

“Education Loan for Medical Students: Know Top 5 Banks in India.” Www.bankbazaar.com, www.bankbazaar.com/education-loan/medical-students-in-india.html. Accessed 24 Apr. 2024.

“Foreign Education Loan – Education Loan for Abroad Studies | HDFC Bank.” Www.hdfcbank.com, www.hdfcbank.com/personal/borrow/popular-loans/educational-loan/education-loan-for-foreign-education. Accessed 24 Apr. 2024.

“How to Get Education Loan for Abroad Studies | Axis Bank.” Www.axisbank.com, www.axisbank.com/progress-with-us-articles/education-loan-for-abroad-studies. Accessed 24 Apr. 2024.

“Student Loan – Apply for Student Loan Online in India |SBI – Personal Banking.” Sbi.co.in, 2019, www.sbi.co.in/web/personal-banking/loans/education-loans/student-loan-scheme. Accessed 24 Apr. 2024.

“Types of Education Loans.” Www.bankofbaroda.in, www.bankofbaroda.in/banking-mantra/loans-borrowings/articles/types-of-education-loans#title-id3. Accessed 24 Apr. 2024.