Hello friends, have you ever imagined that a decision that could change your entire career could be halted by financial constraints? Imagine your child securing an MBBS seat at a top medical college abroad, but the burden of fees and expenses breaks the family.
Thousands of Indian families face this pain every year. But wait, there’s a solution: an education loan. Today, we’ll talk about education loans for medical studies abroad, which will not only help you achieve your dreams but also provide a stress-free path forward. Let’s get straight to the point so you can read to the end and make a decision.
Why Students Choose to Study Medicine Abroad
I know, choosing a career in the medical field isn’t easy. The NEET cut-off in India is so high that millions of students choose to go abroad. In countries like Russia, Ukraine, the Philippines, or Germany, MBBS fees can range from 20-50 lakh rupees per year, plus living expenses. Overall, a 5-6 year course can cost up to ₹1-2 crore (approximately $10 million to $20 million).
However, the good news is that Indian banks and financial institutions offer loans that can cover 100% of the cost.
Loan Coverage for MBBS Abroad
According to a WeMakeScholars report, both public and private banks offer special schemes for MBBS programs, covering everything from tuition fees to books and equipment.
Types of Education Loans for Medical Studies Abroad
Now the question is: which loan to choose? There are two main types for overseas studies: secured and unsecured.
Secured Education Loans
Secured loans require collateral (such as property or fixed deposits), which are safer for higher amounts. SBI’s Global Ed-Vantage Scheme is the best option here – loans up to ₹1.5 crore (approximately $15 million), with a 20% margin, and EMIs start only after the course is completed. The interest rate ranges from 8.5-10%.
Unsecured Education Loans
Meanwhile, unsecured loans are available without collateral, but the amount is less (up to 75 lakh rupees) and a co-borrower (parents) is required. ICICI Bank offers up to 3 crore rupees for MBBS abroad, which also covers travel and living expenses.
Comparing Bank Loan Options
Friends, comparing banks is important when choosing a loan.
Public Banks
Public banks like Bank of India’s Star Education Loan offer up to 150 lakh rupees at a rate of 9-11%, and up to 7.5 lakh rupees under the government’s CGFSEL scheme is guarantee-free.
Private Banks
Among private banks, Axis or HDFC offer fast processing at 13-14%.
According to GyanDhan, unsecured loans for MBBS abroad are rare because banks assume the risk of passing the FMGE, but 100% funding is possible with secured loans.
Tax Benefits
There are also tax benefits – interest deductions are available under Section 80E, which saves thousands annually.
Eligibility Criteria for Education Loan
Are you eligible? The requirements are simple:
- Indian citizen
- 60% marks in 10+2
- NEET qualification
- Admission letter from a foreign university
- Age 18-35 years
- Co-borrower’s income should be 4-5 lakh rupees per annum
Required Documents
Documents are minimal – admission letter, ID proof, income proof, and collateral details.
Application Process
BankBazaar suggests applying online, filling out the form on the bank website, and approval within 15 days.
Common Challenges
Challenges? Yes, high collateral or lack of credit history may lead to rejection, but compare multiple banks.
Loan Repayment Details
Repayment is easy – course period + 6-12 months moratorium, followed by EMI for 15 years.
For example, a loan of Rs 1 crore at 10% interest rate would cost 10-12 thousand rupees per month.
HiwiPay recommends planning a budget so that it can be repaid as soon as you graduate and start practicing.
Foreign Loan Options
Foreign loans like MPOWER Financing are a good option for international students, but Indian banks are cheaper.
Important Tips Before You Apply
Friends, foreign degrees must be MCI-recognized, otherwise practice will be difficult. Secure funding with a loan, but research the university.
Propelld’s blog has details on how to get a loan up to ₹50 lakh without margin.
Remember, this is an investment – you’ll earn millions by becoming a doctor.
Final Words
Finally, if you’re ready, apply today. Your future won’t wait. Any questions? Ask in the comments. Best wishes for success!