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Introduction to Education Loan for MBBS
Pursuing a degree of your choice and interest is something that most of us wish for. Some aspire to study engineering, some wish to study business. Many still wish to pursue medicine. However, with the rising cost of education, not everyone gets to fulfill their dream of becoming a doctor.
This is where an education loan comes in. A short-duration education loan is a type of personal loan that can be availed to study. You can use the funds to finance the course of your child’s choice, be it an education loan for MBBS, engineering, or any other course.
Why take MBBS Education Loan?
Looking at the fee structure, it is imperative to have enough funds to sustain for 6 years. If you are running short of funds for the medical education of your child, an education loan can help you sustain yourself financially.
Availing an education loan without collateral simply means that you do not need to pledge any security against the loan. You can avail the student loan for MBBS without worrying about pledging any asset at any point in your education.
How can an education loan for MBBS studies help? Education loan benefits are ample. You can use the funds from the loan for MBBS to pay for the fees, to buy books and literature, and pay for housing and boarding as well.
Education Loan for MBBS EMI Calculator
Before applying for an Education Loan for MBBS, why not be a little more certain about your EMI loan and its interest rate?
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The education loan EMI calculator by Finnable lets you determine your loan terms in advance, so that you can decide your loan amount and interest rate and repay it on your terms. Following are the benefits of using the MBBS education loan EMI calculator:
- Accurate EMI Calculation: An EMI calculator ensures accurate calculations of your monthly instalment amount. It eliminates the possibility of manual errors and provides you with precise figures based on the loan amount, interest rate, and loan tenure.
- Financial Planning: The calculator helps you plan your finances effectively by providing a clear understanding of the EMI amount you would need to repay each month. It enables you to budget and manage your income and expenses accordingly.
- Loan Customisation: With the education loan EMI calculator, you can experiment with different loan parameters such as the loan amount, interest rate, and loan tenure. By adjusting these variables, you can assess the impact on your EMI and choose a loan structure that best suits your financial capabilities.
- Comparison: If you are considering multiple education loan options, the education loan EMI calculator allows you to compare the EMIs for each loan. You can input the details of different loans and evaluate which one offers a more affordable EMI and better repayment terms.
- Early Loan Repayment: The education loan EMI calculator also allows you to assess the impact of early loan repayment. By investing a higher amount towards prepayment, you can determine the potential reduction in the loan tenure or the total interest payable.
- Time-saving and Convenient: Using an EMI calculator is quick, easy, and convenient. It saves you time that would otherwise be spent manually calculating loan EMIs. You can access an EMI calculator online anytime, anywhere, and receive instant results.
Using the Education Loan EMI Calculator
To use the free education loan EMI calculator provided by Finnable, follow these few simple steps
Step 1- Enter Loan Details: Fill in the required loan details in the designated fields. These details typically include the education loan amount, tenue, and interest rate.
Step 2- Select the Repayment Frequency: Choose the frequency of loan repayment. It is usually in monthly instalments (EMIs).
Step 3- Review the Results: The education loan EMI calculator will display the estimated monthly instalment amount you would need to pay towards your education loan. It may also show a breakup of the principal amount and interest component for each EMI.
Step 4- Adjust Loan Parameters: If you want to explore different scenarios, you can go back to the calculator and modify the loan parameters such as the loan amount, interest rate, or loan tenure. By adjusting these variables, you can assess how changes impact your EMI.
Education Loan for MBBS Interest Rates
While the interest rates in education loans for MBBS may vary with each lender, the following criteria are evaluated when determining the interest rate for a loan applicant:
- Loan Type: Different types of education loans, such as undergraduate loans, graduate loans, or professional degree loans, may have varying interest rates. Lenders may offer different rates based on the type of education loan you are applying for.
- Credit Profile: Your credit history and creditworthiness play a significant role in determining the interest rate on an education loan. Lenders assess factors such as your credit score, repayment history, and existing debt obligations. A strong credit profile may result in a lower interest rate, while a weaker profile may lead to a higher rate or require a co-signer.
- Market Conditions: Interest rates in the broader financial market can influence education loan rates. Lenders take into account prevailing market rates, such as the prime rate or the benchmark lending rate, when setting their own interest rates on education loans.
- Repayment Term: The length of the repayment term for an education loan can impact the interest rate. Loans with longer repayment periods may have slightly higher interest rates compared to shorter-term loans. This is because longer-term loans carry a higher risk for lenders.
- Lender Policies: Each lender may have their own internal policies and risk assessment criteria that affect the interest rates they offer on education loans. These policies may consider factors such as the institution you are attending, the field of study, or the loan amount requested.
- Co-signer or Collateral: If you have a co-signer or provide collateral for the education loan, it can influence the interest rate. A co-signer with a strong credit history or valuable collateral can potentially help secure a lower interest rate.
Eligibility criteria for an MBBS Education Loan in India
If you are convinced of the education loan benefits, you will need to check for your education loan eligibility:
- Age: To avail of an MBBS loan in India, you need to be between 23-47 years of age. Parents, whose children are studying in a medical college, can apply for an education loan for Medical students.
- Employment: The parent applying for an education loan for MBBS for their child should be working in a private, public, or LLP organisation.
- Income: You will need to have a minimum income of Rs. 25000 per month.
- Tenure of employment: At the time of application for the education loan for MBBS, you need to be employed for more than 3 months at your current company and have a total work experience of more than 6 months.
- Income proof: You will need to provide your salary slip for 2 months as proof of income to be eligible for an education loan.
- Bank statement: The salary needs to be credited to a bank account and the statement needs to be provided at the time of application. If unavailable, you will need to have access to your internet banking to provide the statement.
Need of Education Loan for MBBS Studies
To pursue MBBS in India, aspirants need to have access to funds. As harsh as it may sound, the cost of studying MBBS in India is high.
On completing 12th, aspirants will need to pass the NEET exam with a high score. They will then be placed in a college that is recognised by the government, or a private or deemed university. The fees in a government university can range between Rs. 20,000 to Rs. 8 lakhs, whereas the fees in private colleges can be up to Rs. 1 cr.
MBBS courses in India run for 4.5 years, after which one needs to complete 1 year of internship. Apart from fees, funds are required for studying material, equipment, and boarding as well.
How to get Instant Education Loan for MBBS via Finnable?
Availing of an MBBS education loan via Finnable is quick and easy. Once you tick all the loan eligibility criteria, you can apply for an education loan online.
- To apply for a student loan for MBBS online, you will need to download the Finnable personal loan app.
- Register yourself and add your personal and professional details.
- Choose the education loan amount that is required.
- Upload the documents.
Within 6 hours of document verification, the funds of your education loan will be credited to your bank account.
You can avail an instant loan via Finnable. The education loan interest rate is between 16% to 26% and you can have a loan repayment tenure of up to 5 years.
Studying should not be put on the back burner because of a lack of funds. You can use a student loan to study abroad, a personal loan to travel, a wedding loan for marriage preparations, etc. It is a quick and simple process to avail of a loan via Finnable.
Finnable also lets you avail of an education loan for MBBS without collateral for a multitude of reasons. Though many NBFCs ask for a high credit score, you can avail of an education loan without having one, making it easy for you to be eligible.
Education Loan for MBBS FAQs
Yes, most banks and financial institutions in India offer education loans specifically for students pursuing MBBS or other medical courses. These loans can cover tuition fees, hostel fees, books, equipment, and other related expenses.
Eligibility criteria can vary slightly between lenders. To qualify for an education loan from Finnable, you need to be an Indian citizen, have secured admission in a recognised medical institution in India, and be over 21 years old.
The loan amount you can get for an MBBS course depends on factors such as the institution you are admitted to, the fee structure of the course, and the lender's policies. Finnable offers education loans of up to Rs. 10 lakhs.
Collateral requirements and the need for a co-signer (guarantor) can vary among lenders. Finnable requires a co-applicant for the education loan. This co-applicant can be the guardian or parent of the main applicant.
The repayment of your MBBS education loan will begin after the completion of your course. With Finnable, you can extend this period up to five years following your graduation.
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