No doubt studying for MBBS is highly expensive, especially in India. In fact, MBBS abroad is instead a smart choice, because the expenses are low for foreign studies. Due to such issues people often make queries regarding education loans.
As availing of education loans involve a lot of paperwork, you might have no idea about how to get an education loan for MBBS. However, in this blog, we have discussed every important aspect of education loans.
Types of Loans for MBBS Abroad
There are several types of education loans available for students pursuing MBBS abroad. Here we have discussed almost all the types of education loans, you can apply for MBBS abroad.
Secured Education Loan
Firstly, secured education loans require collateral or security to be pledged by the borrower. This collateral could be in the form of property, fixed deposit, or any other asset. Secured loans generally have a lower interest rate than unsecured loans.
Unsecured Education Loan
On the other hand, unsecured education loans do not require collateral or security. However, unsecured loans usually have higher interest rates compared to secured loans.
Pre-Visa Disbursement Loan
Another type of education loan available for MBBS abroad is the pre-visa disbursement loan. This loan is given to students who have secured admission to a foreign university and require funds for visa-related expenses, airfare, and other pre-departure expenses. The loan amount is disbursed before the student departs for their studies.
Post-Visa Disbursement Loan
Furthermore, post-visa disbursement loans are granted to students who have received their visas and need funds to pay for their tuition fees and other expenses after reaching their destination.
Bridge Education Loans
Lastly, bridge education loans are a type of short-term loan that covers the gap between the disbursement of the loan amount and the payment of tuition fees. This type of loan is ideal for students who are facing a delay in receiving their scholarship funds or other financial assistance.
It is important to note that the terms and conditions of education loans can vary among banks and financial institutions. Therefore, borrowers should carefully compare the interest rates, repayment terms, and other terms and conditions before choosing a lender. By doing so, they can make an informed decision and choose the loan option that best suits their financial needs.
How Much Funding Can You Receive Through an Education Loan?
Different banks and financial institutions offer varying maximum amounts for an education loan for MBBS studies. However, generally in India, the upper limit for such loans falls within the range of Rs. 20-30 lakhs.
The reputation of the Educational Institution
Factors such as the reputation of the educational institution, the academic performance of the student, the income of the co-applicant, and the collateral provided, if any, can affect the loan amount.
Repayment Terms & Interest Rates
Moreover, repayment terms and interest rates also differ between lenders. Hence, it is advisable to research and compare loan offerings of different banks and financial institutions before selecting a loan provider for MBBS studies.
When selecting a loan provider, students, and their families should consider the loan amount, interest rates, and repayment terms, and evaluate the benefits and drawbacks of each option. Additionally, it is essential to ensure that the loan provider is reliable and has a good track record of serving students.
Conclusion
In addition, while the upper limit for an education loan for MBBS studies in India is generally around Rs. 20-30 lakhs, the actual loan amount may vary based on several factors, and it is essential to research and compare loan offerings from different banks and financial institutions before selecting a loan provider.
What are the Basic Criteria to Apply for an Education Loan?
The basic criteria to avail of an education loan may vary depending on the lender, but some of the most common requirements are:
- Age: Typically, the applicant should be above 18 years of age, but this may vary depending on the lender’s policies.
- Nationality: The applicant should be a citizen of India.
- Admission to a recognized course: The applicant should have secured admission to a recognized course of study, either in India or abroad.
- Academic performance: The applicant should have a good academic record, with a minimum qualifying percentage in the qualifying examination.
- Co-applicant: The applicant must have a co-applicant, who can be a parent, spouse, or guardian, with a steady source of income to repay the loan.
- Income: The co-applicants income should meet the lender’s minimum income requirement, which may vary depending on the lender.
- Collateral: Depending on the loan amount, the lender may require collateral security, which can be in the form of property or fixed deposit, among others.
It is important to note that these are the general criteria. Moreover, lenders may have specific requirements or conditions that need to be met. Hence, it is advisable to research the loan offerings of various lenders. In fact, evaluating the eligibility criteria before applying for an education loan.
What Else You Can Know?
Hopefully, all the necessary details are discussed here. To get answers to queries like:
- Eligibility criteria to apply for an education loan
- A detailed idea regarding the procedure for applying for a loan
- Necessary Documentation
- Which bank would be suitable to enroll for a loan?
- What is the interest rate?
- Idea regarding repayment
You can call us at the number given below or watch the video. Moreover, you can also fill up the attached form and our expert counselors will revert back to you within 24 hours.
0