Education Loans for MBBS Abroad: A Detailed Overview

Public-sector banks, as stated above, offer education loans on lower interest rates in comparison to private lenders. Study abroad loan interest rate in India is determined by banks on the basis of the Marginal Cost of Funds-Based Lending Rate (MCLR). It is the benchmark based on which most Indian lenders calculate the foreign education loan interest rates. This MCLR is evaluated by taking into account several factors such as the marginal cost of funds, the tenure premium, the operating cost, etc.

Though the MCLR is the basis of all the abroad education loans for MBBS fixed by the Indian lenders, most public-sector banks’ interest rates are calculated as MCLR + Spread (a premium amount levied by lenders). Typically, the interest rate of government bank education loans ranges between 8% and 10%. For an instance, SBI education loan for MBBS abroad starts around 8.8% p.a. The maximum loan amount that can be sanctioned by government banks could go up to INR 1.5 Crores. 

Some of the common eligibility criteria for secured loans in India for abroad education are:

• Students must have all the papers related to collateral security. 
• The applicant must be an Indian national. 
• The applicant should have got admission to a recognized institute abroad. 
• The applicant must have had a good academic record. 
• A good CIBIL score is a criterion of most banks when sanctioning an abroad education loan.

Note: For applicants looking for a loan to fund their MBBS courses in countries like Ukraine and China, there are special rules and regulations. For instance, The State Bank of India might require students to take a country deviation to fund their MBBS courses in such countries.

Banks in India always go through the student’s profiles and make a decision according to them. For example, the chances of success for applicants who have applied to MBBS programs in the USA are much higher. The same success rate cannot be seen for MBBS courses in countries such as Ukraine, the Philippines, or China. This is because most of the universities located in these countries are not on the list of many government banks. 

Even though getting a secured education loan is way easier than getting an unsecured education loan, the process is still cumbersome and filled with numerous blockades. Banks may reject the loan because of a lack of some documents. Students can avoid all such pitfalls by contacting GyanDhan. Steps to apply for an abroad MBBS loan via GyanDhan are:

• Get in touch with GyanDhan.
• Our counselor executes a simple 3-step loan application process helping in easier and faster loan sanctioning. 
• The counselor will assess the student’s profile and will recommend the best lender after closely evaluating the eligibility. 
• Students can then finalize the lender after our recommendation for the best options as per our expertise. 
• Once the lender is decided upon, GyanDhan then sends over a customized document checklist needed for the loan application.
• The counselor will also help the student with submitting the documents. We collect the document from students’ doorstep or students will have to upload them online. In both cases, students will not need to step out of their homes. 
• After the document submission, we coordinate with the bank and help expedite the process. 
• We keep student updated and try to resolve any bottleneck if comes in the loan process.