In India, the cost of medical education degrees like MBBS and MD are higher than most other courses. It’s needless to say that parents funding their child’s medical education need to be financially strong; but unfortunately, most parents aren’t.
If the child gets admission to a government medical college, the fees are affordable. But if the child gets admission to a private medical college, it’s difficult for middle-class people to pay the substantially high college fees. So, what option do they have? Enter education loans for medical students.
Why Take an MBBS Education Loan?
It’s possible that your child, in spite of being a meritorious student fails to get admission to a government medical college. The option left with you is getting your child admitted to a private medical college. Unfortunately, these medical education institutions charge extremely high fees.
On average, the annual tuition fees in a government college is between ₹30,000 to ₹1 Lakh. But, in a private medical college, the fee can go as high as ₹12 Lakh. And this amount does not include NRI and management quota which the private colleges separately charge, plus hostel and other fees.
This can be quite frustrating for deserving students who want to pursue their dream of becoming a doctor. An MBBS education loan can provide financial support to these deserving students.
MBBS Course Fee for Top MBBS Colleges in India
|Rank||Top MBA Colleges in India||Location||Tuition Fees|
|1||All India Institute of Medical Sciences||Delhi||INR 7800|
|2||Christian Medical College||, Vellore||INR 1,50,000|
|3||Amrita Vishwa Vidyapeetham||, Coimbatore||INR 90,00,000|
|4||Armed Forces Medical College||Pune||INR 68,000|
|5||Maulana Azad Medical College||Delhi||INR 15,000|
|6||Banaras Hindu University||Varanasi||INR 65,000|
|7||Jawaharlal Institute of PostGraduate Medical Education & Research||Puducherry||INR 35,000|
|8||King George’s Medical University||Lucknow||INR 20,06,000|
|9||Sri Ramachandra Institute of Higher Education and Research||Chennai||INR 1,10,00,000|
|10||University College of Medical Sciences||New Delhi||INR 25,000|
Things to Keep in Mind Before Taking an Education Loan for MBBS in India or Abroad
Before you apply for a student loan for education, consider these factors:
- Fees covered:
- Loan disbursement:
- Repayment period:
- Moratorium period:
- Interest rate:
- Processing and prepayment charges:
- Top-up loan for higher medical studies:
The tuition fees are not the only expenses involved in getting an MBBS degree. There are other expenses such as laboratory, library, examination, equipment, hostel, etc. When these fees add up, the cost of the overall degree goes up drastically. Therefore, before you apply for an education loan for MBBS, check whether your lender covers these fees or not.
Figure out in advance about the bank’s loan processing and disbursal timelines.
If specialisation after MBBS is on the cards, there will be no income earned, hence repaying the borrowed amount can be difficult. Look for a lender who is willing to give you an education loan with a longer repayment period.
If the loan amount is higher, you may be asked to put up collateral, which can be a house, land, FD, etc. So, before applying for a student loan for MBBS, read the fine print on collateral very carefully.
During this period, you are allowed to make no repayment after completion of education. Make sure this period is on the higher side. Most banks offer a moratorium period of 6 months, after which the repayment starts.
For a student loan for MBBS, the interest should be as low as possible. Negotiate with your lender to lower the interest rate as much as possible, so that you can save money as much as possible.
Most banks allow you to prepay your education loan, but you may have to pay a fee for prepayments. If that’s the case, bargain with your loan provider to waive off this charge. The same goes for processing fees.
If the student wants to pursue higher education after MBBS, you may need the top-up loan. So, before you get an education loan for MBBS, check whether your lender charges additional interest on the top-up loan for higher studies. Also, check whether the lender allows you to extend the repayment period further.
The medical education, whether MBBS or post-graduate level, is an expensive affair in India. However, with the help of education loans for medical students, the dream of becoming a doctor can now become a reality.