Study Abroad Without Worries: Get Education Loan for MBBS!
Getting an education loan for MBBS can help you in living your dreams. Thus, explore all about it (process, eligibility, schemes, and much more) by reading this blog till the end.
Managing MBBS costs to study abroad is difficult. Thus, getting an education loan is one of the best solutions. This blog talks in detail about everything that will make you aware of every loan concept. It discusses about problems, schemes, processes, and criteria to avail an education loan. So, if you are unaware of any aspect, you will surely get all your answers here. Stay connected till the end to get valuable information.
An education loan is a financial aid that students can take to meet their study goals. Along it comes the responsibility of repaying in a specified time period. Thus, it is beneficial for those candidates who are stubborn with their education motive but do not have enough funds. When it comes to a degree such as MBBS, it is advisable to fund your studies by taking the help of a financial institution. Taking an education loan for MBBS with the help of Gradding.com is a safe way.
This will help you to meet many other costs, such as tuition fees, living expenses, accommodation, and much more. Taking a loan to fulfil your educational purposes is a popular choice among scholars. To get an answer as to why you should also finance MBBS, read the blog till the end. .
Why Should You Take an Education Loan for MBBS?
MBBS is a long course that takes 5-6 years of your career. Thus, when you invest such crucial years of your life in MBBS to attain a degree, you expect to get a quality education somewhere. You can attain it by studying abroad. In a different country, you not only get access to good studies but also develop your personality. So, there arises no doubt as to why you should move abroad.
However, expensive cost of MBBS saves you from studying abroad that becomes the strong reason for you to take education loan. Furthermore, you might have some insight into the fee structure, but for a quick revision, refer to this table. It gives you an idea of pursuing MBBS from popular countries across the globe and proves how taking an education loan MBBS can be the best solution.
|Average Cost of MBBS
|INR 30 to 70 Lakh
|United States of America
|INR 20 to 60 Lakh
|INR 15 to 50 Lakh
|INR 30 to 50 Lakh
|INR 5 to 12 Lakh
|INR 30 to 50 Lakh
|INR 6 to 15 Lakh
|INR 10 to 20 Lakh
|INR 15 to 30 Lakh
Looking at the table above, you might have gotten an answer as to why you should take an education loan. So, now, if you are clear on this part, it is time to explore more details regarding loans.
Details You Must Know to Get an Education Loan for MBBS Abroad
Two types of education loans exist: collateral and non-collateral. A collateral loan is one in which you have to put some security against the loan. It can be either a fixed deposit or a house. Therefore, it is also known as a secured education loan. On the other hand, non-collateral is the one where there is no need to put any type of security. Hence, it is known as an unsecured education loan.
Well, requirements and many aspects to get either collateral or non-collateral MBBS loan differ. Thus, here is a table helping you to understand the differences between the working of both loans.
|Collateral Education Loan
|Non-Collateral Education Loan
|The limit for collateral loans is up to two crore
|The limit for non-collateral loans is up to 45 lakh
|The interest rate of a collateralized loan starts from 8.55%
|The interest rate of a non-collateralized loan starts from 9.55%
|The repayment duration of a secured loan is up to 15 years
|The repayment duration of an unsecured loan is up to 15 years and includes a moratorium period
|The eligibility criteria to get a collateral loan are as follows:
|The eligibility criteria to get a non-collateral loan are as follows:
|The moratorium period for a secured education loan is the total duration of the course+ six months
|The moratorium period for unsecured education loans is the total duration of the course: six months or one year
|The basic documents required to get a non-collateral education loan are PAN, passport, Aadhar card, income proof, proof of property to mortgage, and income tax return copies.
|The basic documents required to get a collateral education loan are a PAN, passport, Aadhar Card, and income proof.
So, these are some points you must know before you decide to take either a secured or unsecured loan. Thus, now you must have got a brief on education loan for MBBS, but you might still be uncertain about the loan providers. To get an answer to it, hop on to the next section.
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Education Loan Schemes for MBBS to Study Abroad
Wondering which are the best education loan schemes for MBBS to study abroad? If yes, here is an answer to it.
SBI Education Loan for MBBS Degree
SBI provides secured education loans to MBBS students for studying abroad up to an amount of 1.5 crore. The interest rate charged by this bank is 10.90%. The SBI education loan for MBBS abroad is suitable for both public and private colleges.
Axis Bank Education Loan for MBBS
Axis Bank provides a loan to students willing to study MBBS from abroad for a maximum amount of 50 Lakh. The interest rate for Axis Bank starts from 13.70% per annum. The repayment period for the loan is up to 15 years, and the processing fee charged is 2% of the loan amount.
HDFC Education Loan for MBBS
HDFC banks provide MBBS abroad education loan to aspiring students for up to 1.5 crores. The interest rate of this bank ranges from 9.5% to 11.5%. The repayment period of the loan is 15 years and covers tuition fees till the completion of the course with a 0% loan margin.
Canara Bank Education Loan for MBBS
Canara Bank provides need-based financing to MBBS aspirants with an interest rate that starts from 9.25%. The repayment period for the loan amount is 15 years and provides special discounts of 0.50% to women.
Bank of Baroda Education Loan for MBBS
Bank of Baroda provides a loan amount of 1.50 crore at an interest rate starting from 8.55%. The bank charges no processing fee for an amount up to 7.5 lakh. After that, the charges are 1% of the loan amount or INR 10,000.
These are some of the best education loan schemes for aspiring MBBS students. But, before coming to a final conclusion, always get in touch with agents or loan providers because MBBS education loan eligibility differs from one bank to another and requirements differs from person to person and from time to time. As of now, you have a hint about the best schemes and suitable lenders, but in reality, there can arise many problems in your way while availing it. Thus, to know which hurdles can come along your path, move to the next passage without wasting time.
5 Problems that Arise While Applying for MBBS Loan
The above section talked about the banks that can help you in getting the required loan amount. But the process of acquiring it is not easy. There are many cases when the loan gets rejected. Thus, explore the reasons which can become a stumbling block in your way.
1 Inadequate Collateral Value:
The value of the collateral should either be equal to or more than the requested loan amount. Shortage in the value of collateral leads to the rejection of student loan for MBBS surely. Thus, before applying for a loan, always have an idea of the asset's worth.
2. Poor Academic Performance:
Your academic performance also becomes a reason for the approval of the loan amount. The bank determines your scores and takes an idea of your employability. If the performance is excellent, the authorities know that there are high chances of loan repayment. But when the performance is not up to mark, it leaves room for doubt.
3. University Eligibility:
The biggest problem that arises while applying for a loan is that you consider interest rates and amounts. These two factors become your main criteria when you are on the verge of finalising the deal. The hurdle comes when you find out that the college you are applying for is not on the approved list of lenders. Thus, it becomes important to check the university status before submitting the loan application.
An education loan for MBBS in abroad is a complex process and requires many essential documents. Thus, it is necessary for you to submit the correct papers. Any problem, such as inaccuracy, incompleteness, or missing documents, can lead to the rejection of the loan application. Banks get into every minor detail to sanction any loan.
5. CIBIL Score:
Credit history plays a crucial role in the approval of education loans. The banks or other financial institutions check your creditworthiness or history before sanctioning the loan. Poor credit score can lead to the rejection of the loan. Thus, it is advisable to maintain it from the start if you are planning to study abroad in future.
These are some significant problems that can arise in your path. Thus, you should know the proper way while applying for an education loan for MBBS in detail. So, without any further delay, skip to the next section.
Know How to Apply for an MBBS Education Loan
Now that you know the suitable schemes and mistakes, it is time to know the correct procedure. Thus, take a look at the points below.
- The ideal way to apply for an MBBS loan is to get in touch with an agent or an education consultant. You can connect with Gradding.com as they have years of expertise in this domain
- Once you get in touch with them, tell them your specific requirements. They will help you find an apt lender or bank that suits your needs.
- When you go through a list of options provided by agents, it is time to make a final decision. In case of any confusion, you can get in touch with agents. They make you understand everything in a simplified manner and help you to make a rational decision.
- The next step is to provide the required paperwork to the lender so they can start the process of loan sanctioning. Ensure you submit every document on time for a smooth process.
- The sanctioning of the loan will take up to 7 days. Once it gets approved, you will receive a letter that mentions the loan amount, interest rate, and many more details.
We hope you got a clear picture of every aspect of getting an education loan for MBBS. This blog talked about everything, ranging from banks to the application procedure. Thus, it is now your turn to take a step ahead carefully without any scope for mistakes. It is advisable to take an agent's help because there are several formalities. Doing everything alone can lead you to make many mistakes that can have negative repercussions. Thus, do not take a risk if your end goal is to study abroad as soon as possible.
Frequently Asked Questions
Question 1. What is the Approval Rate for an MBBS Education Loan?
The approval rate for an MBBS education loan depends on which country you are applying to. For example, in the USA, there is a high approval rate. In countries such as China and Ukraine, the approval rate is much less. The reason is that colleges in such countries are not listed on government banks.
Question 2. How Much Minimum Amount I Can Get for My MBBS Loan?
The amount of loan for MBBS depends on which bank or financial institution you approach. Every lender has different criteria. But on average, the minimum amount that you can get is up to 7.5 Lakh.
Question 3. In Order to Get a Secured Loan, What Will Be Considered as Collateral?
If you want to get a secured loan, you must submit either tangible or intangible collateral. Tangible collateral (can be touched or seen) includes a house or any land. Intangible collateral (can not be touched or seen) includes a fixed deposit or any bond.
Question 4. Can I Get an Education Loan If I Have Scored 50%?
The minimum score criteria for banks to provide education loans is 50%. So, there are banks that can provide you with the required loan amount. But for the same, you have to research in depth because every financial institution has different criteria.
Question 5. Will I Get a 100% Education Loan to Study MBBS Abroad?
Well, it depends on whom you approach to get an education loan. Private banks and lenders cover 100% of the cost of studying abroad. On the other hand, public banks do not cover 100%. They expect you to finance 10-15% of the overall cost independently.