Education Loan for MBBS Abroad: Are you arranging funds to fulfill your child’s dream of being a doctor? If yes, then your kid is about to pursue an MBBS course in India or abroad. Getting a medical seat in a foreign medical college is not easy, so don’t lose the opportunity. Taking an education loan is the best funding choice a lot of students choose to study MBBS abroad.
Students will get only secured education loans from the government banks for MBBS courses in abroad countries. Check all other details like eligibility, interest rate, needed documents, and application process for Education Loan for MBBS Abroad in the following sections.
Education Loan for MBBS Abroad
Education loans are the financial aids that banks and NBFCs provide to students for doing higher studies abroad or in India. Doing an MBBS course is not cheap. Once the students achieve a medical seat in any popular medical college in the world, the next big requirement is the high tuition fees. It is the time when students are looking for an Education Loan for MBBS Abroad.
A lot of foreign colleges and universities are offering MBBS courses to talented students. Most Indian students depend on education loans for MBBS overseas to avoid taking on the burden of the fees. As the course duration is high and fees are expensive, you get secured education loans only from govt banks/ private banks or NBFCs.
Why Don’t Lenders Offer Unsecured Education Loans for MBBS Courses?
Private lenders or private banks don’t offer unsecured education loans for MBBS courses as the course duration is 4 years. The lengthy course duration is one reason that banks hesitate to give unsecured education loans.
Another major reason is MBBS courses are very expensive in countries like Canada, USA, etc. So medical students prefer to choose countries like Ukraine, China which are cost-effective, but these countries are not on the lender’s loan list. Finally, these are the reasons for people to select secured education loans for MBBS courses abroad.
Secured Education Loan
Secured education loans are offered on the basis of collateral security. Most students go for this collateral education loan to study in foreign countries as these loans are granted by govt banks. Also, government banks offer competitively low-interest rates and various education loan schemes for overseas students.
The different types of collateral security needed for secured education loans are tangible and intangible. Tangible collateral is the immovable properties whereas intangible are the liquid assets.
- Immovable Property: They are houses, flats, agricultural land, and non-agricultural land. It is an asset that is physically visible. In this, the property value should be equivalent to or more than the total education loan amount.
- Liquid Assets: They are fixed deposits, life insurance policies, government bonds, etc accepted by the collateral security.
- Third-Party Assets: Here students don’t have any assets, so they put a third party’s assets as collateral security. This third party is not from the person’s immediate family.
Top Loan Providers For Medical Students
A lot of public and private banks and NBFCs offer education loans for MBBS abroad.
Public Banks
Public banks SBI and Bank of Baroda offer low-interest rates with high chances of loan approvals. But, their document processing takes too much time. So, it is best to apply at least 25 days before. The different public banks that provide loan to medical students are here:
- State Bank of India
- Bank of Baroda
- Punjab National Bank
- Bank of India
- Union Bank of India
Private Banks
Private banks process education loans quicker but their interest rates are high. And the loan approvals are also more. The various private banks you can contact are here:
- HDFC
- ICICI
- Axis
- Kotak
- Indusland
NBFCs
Few NBFCs provide unsecured education loans in a short time. They do even not require high documentation and rely on the guardian’s income and CIBIL score. They even give high-interest rates. The NBFCS are here:
- Avanse
- Credila
- Power Finance
- Indian Student Loan Program (ISLP)
- Global Student Loan Corporation (GSLC)
Eligibility Criteria for Education Loan for Abroad MBBS Courses
The following are the eligibility conditions for students to get a Study Abroad Education Loan to pursue MBBS courses abroad.
- The student’s academic performance should be excellent throughout their education. So, they shouldn’t have backlogs in their academic profile.
- The value of the collateral pledge taken as security for an education loan should be more than the actual education loan amount.
- To study MBBS courses in countries like China, and Ukraine, there are special rules for the education loan.
Documents Required for MBBS Courses Education Loan Abroad
The list of documents needed for taking the Student Education Loan for MBBS abroad is here:
- Bank application form
- Passport size photographs
- Photo ID
- Residence proof
- Admission letter from the college
- Academic documents and scores from competitive exams
- Proof of income
- Last 6 months’ bank statements
- Proof of collateral
- Relevant technical and legal documents
How to Apply for MBBS Education Loan Abroad?
Actually, education loan approval for abroad is a time taking process. So it is advised to start the application process early.
- Firstly, check whether your course and college are recognized by the bank or not.
- Check the different schemes that offer high loan amounts for less interest rates.
- After finalizing the loan amount and bank, fill out the application form.
- Attach the needed documents to the application and submit them to the bank.
- Get in touch with the advisor to know your loan status and when it can be approved.
FAQs on Education Loan for MBBS Abroad
- Can I get an education loan for MBBS abroad?
Yes, you can get an education loan for MBBS abroad only if you have any collateral.
- Is it OK to take an education loan for MBBS?
Yes, it is okay to take an education loan for MBBS as it can be repaid easily by students after their course.
- Can I get a 20 lakhs education loan without collateral to study abroad?
HDFC Bank offers Rs. 10 lakh education loans without collateral to study abroad.
- How can I get a 100% scholarship for MBBS abroad?
The top scholarship for MBBS abroad is here:
- Brunel Medical School International Scholarships
- Ibni Sina Medical Sciences Scholarship Program
- FoM Master’s Scholarships
- Anhui Medical University CSC Scholarship
- Rhodes Scholarship
- Harvard Medical School Scholarships
- Lester B Pearson Scholarships
Final Verdict
Obtaining an Education Loan for MBBS Abroad might be a difficult task. However, with the proper guidance, research and by taking the help of loan experts, it can be a simple process. Hoping that you got enough details for the loan approval. Stay in touch with our site to know more articles such as Student Loans for Studying Abroad, Education Loan for Studying MBBS in India.