Severe health issues have emerged as a result of the current pandemic crisis. It has highlighted the importance of doctors and the healthcare industry in fighting the COVID-19 epidemic.
But do you know how much medical school costs in India? Do you know where a doctor’s journey begins? Yes, after earning an MBBS degree, a doctor’s journey officially begins.
Students typically use student loans for MBBS in India to pay for their medical education. However, anyone who has applied for an education loan for an MBBS program will tell you how tough the entire procedure is and that most of the time there is little support from any financial organizations. What does that imply for students pursuing an MBBS in India?
Read this article through to the end if you’re interested in learning more about the lenders who provide education loans for MBBS in India. This post attempts to provide you with the information you need.
Types of student loans
Education loans are further divided into two categories because they are one of the main sources of finance for education.
- Secured student loans: Secured student loans are made possible by the use of security as collateral. Here, in order to be eligible for an education loan, the borrower must pledge the collateral to the lender. Immovable property, liquid security, or any third-party collateral (such as a house, land with clearly defined boundaries, fixed deposits, government bonds, etc.) are the three main categories of collateral recognized as a security.
- Unsecured student loans: Unsecured student loans are awarded based on the applicant’s academic record and the financial situation of their co-applicant. In this, students are qualified for an unsecured school loan without having to provide any collateral security. Students must therefore pay close attention to the eligibility requirements stated by the financial institutions.
These are the two categories of student loans offered in India. If you’re looking for an education loan for an MBBS in India, get in touch with our staff to get expert advice on education loans there.
Costs associated with a student’s MBBS program in India
National Medical Commission (NMC) and Indian Government Authorities are responsible for affiliating and accrediting medical schools and colleges.
They carry out inspections of medical colleges and other institutions and establish the rules required to uphold the highest standards and quality of instruction in medicine.
The length of the MBBS program is around five and a half years, which includes a one-year Compulsory Rotating Residential Internship (CRRI). In India, there are around 542 medical colleges, 64 of which are PG institutions approved by the NMC.
After MBBS comes MS, a postgraduate program in some specialties like MS/MD/DNB or others. Students have the option to choose their own area of specialization. PG programs in the medical area typically last three years, while diploma programs last two years.
The price of an MBBS program in India may differ from one institution to another. Comparatively speaking, public institutions are less expensive than private ones.
The majority of students look into several options to pay for their MBBS program in India. A student loan for MBBS in India is one of the greatest options.
Recommendations for MBBS education loans in India
Let’s talk about the sort of education loan that is suggested for MBBS study in India now that we are aware that there are two types of education loans.
NBFCs and private banks offer unsecured student loans. They offer relatively slim chances for MBBS students in India to obtain an education loan.
Financial organizations often do not provide student loans for MBBS programs, either abroad or in India. This post will go into further detail on the motivation behind it.
Therefore, in this instance, the only source providing a secured study loan for MBBS in India is government banks. However, students should not solely rely on this since government bank education loans have their own unique set of requirements.
Secured education loans are the best kind to use for an MBBS program in India.
The maximum loan amount for MBBS students: is up to 1.5 crore
1. Details about Secured Education Loan
Student applicants seeking secured student loans must provide collateral in order to be approved. For education loans, various types of collateral security are needed, such as houses, apartments, fixed deposits, government bonds, etc.
Government-run banks will also take collateral from third parties, such as your friends, family, uncles, aunts, etc. When students directly approach banks to request an education loan using third-party collateral, bank representatives typically do not prioritize such situations. Overall, this causes the application for student loans to be delayed.
Advantages of securing a student loan
1. Moratorium
The repayment holiday is another name for the moratorium period. It is one of the main benefits for students who use government banks to obtain educational loans.
In this case, the student is not required to pay the lender anything during the moratorium. Read this article, Benefits of Moratorium Period, for more information.
2. Lower interest rates
Compared to NBFCs and private banks, secured education loan interest rates typically range from 8% to 9%.
3. Affordable Processing Fees
Government banks charge a fixed processing fee of INR 10,000, which is sometimes refundable.
4. Tax benefit: Section 80E
Under Section 80E of the Income Tax Act of 1961, either the loan applicant or the co-applicant may take advantage of the income tax exemption for educational loans.
Conclusion
It follows that obtaining an education loan for MBBS students in India may appear to be an endless process. But if you learn enough about the entire process, it will make getting a student loan a simple process.
