Education loans are important because they allow individuals to finance their education, which can lead to better job opportunities and higher earning potential. Access to education loans is necessary for many individuals to afford the cost of higher education, which can limit their career options and earning potential. Education loans can also help individuals invest in their own human capital, which can lead to long-term benefits in terms of career and earning potential. Education loans can also help reduce the burden of student debt, as they allow individuals to pay for their education over an extended period rather than all at once.
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Is It Worth Taking Education Loan For MBBS In India?
It is worth taking an education loan for MBBS in India if the individual is confident that they will be able to repay the loan, and it will help them achieve their career goals. However, it is also important to carefully research and compare different loan options to ensure they get the best deal possible.
But choosing to take an education loan is worth not for an MBBS degree in India depending on several factors, including the individual’s financial situation, career goals, and the terms and conditions of the loan.
MBBS degree in India can be quite expensive, and an education loan can help make it more affordable. However, it is important to consider the long-term financial implications of taking out a loan, such as the interest rates and repayment terms.
How Much Is The Education Loan For MBBS?
The amount of an education loan for an MBBS degree in India can vary depending on several factors, such as the cost of tuition, the location of the college, and the individual’s financial situation. However, on average, education loans for MBBS in India can range from around 7 to 20 Lakhs, but it can be more or less depending on the individual’s need and the cost of the college.
It’s worth mentioning that the cost of education for an MBBS degree varies greatly from college to college and from government to private college; the cost of education can vary greatly. It’s also important to note that some colleges may have additional costs, such as hostel and living expenses, which must be considered when calculating the total cost of education and the loan amount required.
Individuals must carefully research and compare the cost of different colleges, have a realistic plan for how they will pay for their education, and take into account any future earning potential.
Complete Procedure for Taking an Education Loan to study for an MBBS in India?
The procedure for taking an education loan for an MBBS degree in India can vary depending on the financial institution or bank providing the loan. Generally, it involves the following steps:
- Gather the required documents: This typically includes proof of identity, proof of income, proof of admission to an MBBS program, and a copy of the fee structure for the program.
- Apply for the loan: The individual can apply for the loan either online or by visiting a bank or financial institution in person. They must fill out an application form and provide the required documents.
- Submit the application: After the application is filled out, the individual must submit it to the bank or financial institution, along with the required documents.
- Processing of the loan: After the application is submitted, the bank or financial institution will process the loan, which may include a credit check, verification of the documents, and an assessment of the individual’s ability to repay the loan.
- Disbursement of the loan: If the loan is approved, the bank or financial institution will disburse the loan to the individual. The loan amount will be credited to the individual’s account, and they can use the funds to pay for their education expenses.
- Repayment of the loan: Once the loan is disbursed, the individual will need to repay the loan according to the agreed-upon terms and conditions.
It’s worth mentioning that different banks and financial institutions may have different procedures and requirements for education loans, so it’s important for the individual to carefully research and compare different loan options before applying.
Which Bank Is Best For Education Loan for MBBS?
Some of the popular banks that offer education loans for MBBS in India are:
- SBI (State Bank of India)
- HDFC Bank
- Axis Bank
- Canara Bank
- Bank of Baroda
- Indian Overseas Bank
- Union Bank of India
- IDBI Bank
- Syndicate Bank
- Bank of India
Before going with education loans. one should also compare the interest rates, processing fees, collateral requirements, repayment options, and other terms and conditions to determine which bank offers the best deal for their specific needs. It’s also important for the individual to have a realistic plan for how to repay the loan and consider any future earning potential.
How Long Do MBBS Students In India Take To Repay Their Education Loans?
The time it takes for MBBS students in India to repay their education loans can vary depending on several factors, such as the amount of the loan, the interest rate, and the repayment terms. However, most education loans in India have a repayment period of 5-10 years, although some may have a longer repayment period of up to 15-20 years.
It is important to note that the repayment period of an education loan also depends on the individual’s income and ability to make loan repayments, which can vary depending on the individual’s employment status and earning potential. As a result, some students might take longer to repay their loans, while others might be able to pay off their loans faster. So, based on the individual’s employment status and earning potential it is easy for a MBBS doctor in India to repay education loan.
It’s also worth mentioning that some loan providers may give the option to make pre-payments or fore-close the loan with certain conditions, which can help the individual to repay the loan faster.
It’s important for the individual to carefully review the terms and conditions of the loan to ensure that they understand the repayment period and the amount of the monthly payments. It’s also important for the individual to have a realistic plan for how they will repay the loan and to consider any future earning potential.
How Many Ways Doctors can Earn in India?
Nowadays, The medical profession in India is going competitive, and it’s not guaranteed that the individual will find a job after completing the MBBS degree. Therefore, it is important to consider the job prospects in the field before taking an education loan.
There are several ways that doctors in India can earn a living, including:
- Private Practice: Many doctors choose to set up their own private practice to see patients one-on-one and charge fees for their services.
- Hospitals: Many doctors choose to work in hospitals, either as employees or as consultants. They may also work in government hospitals where they can have a steady income and added benefits.
- Online Consultation: With the rise of technology, doctors can now offer online consultation and telemedicine services, which can be a great way to reach a larger patient base and increase earning potential.
- Teaching: Some doctors choose to teach in medical colleges and universities, where they can share their knowledge and experience with the next generation of medical professionals.
- Research and Development: Some doctors may pursue research and development, which can be rewarding and financially lucrative.
- Medical Writing: Some doctors with a good command of English and good writing skills may choose to write medical articles, books, and blogs.
- Medical Tourism: Some doctors may choose to work with medical tourism companies and provide medical services to patients who travel to India for treatments.
- Government Jobs: Many doctors choose to work in government hospitals and health centers, where they can have a steady income and added benefits such as job security and pension.
- Medical Sales: Some doctors choose to work in the pharmaceutical or medical equipment industry, where they can use their medical knowledge to sell products and services.
- Alternative Medicine: Some doctors may choose to practice alternative medicine, such as Ayurveda, Homeopathy, Naturopathy, and Yoga, which can be a popular and lucrative field in India.
- Insurance: Some doctors may work with insurance companies to review and approve medical claims and help with underwriting.
- Medical Management: Some doctors may choose to work in medical management, using their medical knowledge to help manage and improve healthcare systems and facilities.
- Consulting: Some doctors may work as consultants, offering their expertise and advice to healthcare organizations, pharmaceutical companies, and other businesses.
- Medical Journalism: Some doctors may choose to work in medical journalism, where they can write and report on healthcare issues and developments for publications, websites, and other media outlets.
- Entrepreneurship: Many doctors choose to start their healthcare-related businesses, such as medical clinics, diagnostic centers, or health tech startups.
List of Doctor Specialization With Highest Earning In India.
The earning potential for doctors in India can vary widely based on factors such as specialty, location, and experience. However, some specialties that are known for having higher earning potential include:
- Cardiologists: They are specialists in the diagnosis and treatment of heart and blood vessel conditions.
- Oncologists: They are specialists in the diagnosis and treatment of cancer.
- Nephrologists: They are specialists in the diagnosis and treatment of kidney-related diseases.
- Neurologists: They are specialists in the diagnosis and treatment of brain and nervous system conditions.
- Gastroenterologists: They are specialists in the diagnosis and treatment of digestive system conditions.
- Urologists: They are specialists in the diagnosis and treatment of urinary tract and male reproductive system conditions.
- Orthopedic Surgeons: They are specialists in diagnosing and treating musculoskeletal conditions and injuries.
- Plastic Surgeons: They are specialists in the reconstruction, repair, or replacement of physical defects of form or function involving the skin, musculoskeletal system, cranio, maxillo-facial structures, hand, extremities, breast and trunk, and external genitalia or cosmetic enhancement of these areas.
- Dermatologists: They are specialists in the diagnosis and treatment of skin conditions and diseases.
- Ophthalmologists: They are specialists in the diagnosis and treatment of eye conditions and diseases.
- Radiologists: They are specialists in the use of imaging techniques to diagnose and treat diseases.
- Anesthesiologists: They are specialists in the administration of anesthesia and the management of pain during surgical procedures and childbirth.
- Pediatricians: They are specialists in diagnosing and treating medical conditions affecting infants, children, and adolescents.
- Psychiatrists: They are specialists in the diagnosis and treatment of mental health disorders.
- General Surgeons: They are specialists in diagnosing and treating surgical conditions and diseases.
It’s worth mentioning that the list is not exhaustive, and many other specialties can be financially rewarding as well. Additionally, it is important to note that earning potential can vary based on location, experience, and the specific practice or hospital where a doctor works.
Can I Get Education Loan Without Parents?
It is possible to get an education loan without the involvement of parents, but it may be more difficult, and the terms and conditions of the loan may differ. Banks and financial institutions usually require a co-signer, such as a parent, for education loans for students who are considered to be financially dependent.
However, some banks and financial institutions may offer education loans to financially independent students or have stable incomes. In such cases, the student must provide proof of their income and creditworthiness. In addition, the loan may require a co-signer or a guarantor if the student cannot provide enough collateral.
It’s worth mentioning that some banks and NBFCs provide education loans for students above a certain age, usually above 18 years of age, and are considered financially independent. Some of these loans may require a co-signer or a guarantor, while others may not.
Does Education Loan Get Rejected and Reasons behind the rejections?
Yes, education loans can get rejected by banks and financial institutions. The reasons for loan rejection can vary, but some common reasons include the following:
- Insufficient income: If the student or their co-signer/guarantor does not have a stable income, the bank or financial institution may consider them a high-risk borrower and reject the loan application. So, without proper income proof, it is hard get an education loan.
- Low credit score: Banks and financial institutions may check the credit score of the student and the co-signer/guarantor before approving a loan. The bank may reject the loan application if the credit score is low.
- Insufficient collateral: Some banks and financial institutions require collateral as security for education loans. The loan application may be rejected if the student or their co-signer/guarantor does not have sufficient collateral.
- Ineligibility: If the student does not meet the eligibility criteria set by the bank, such as age limit, academic qualifications, etc., the loan application may be rejected.
- Incorrect or incomplete documentation: If the student or their co-signer/guarantor does not provide all the required documents or the documents submitted are incorrect or incomplete, the loan application may be rejected.
What Happens If Student Cannot Pay Education Loan?
If a student is unable to pay their education loan, it can have serious consequences, including:
- Damage to credit score: If a student misses loan payments or defaults on their loan, it can damage their credit score, making it difficult for them to get approved for future loans or credit cards.
- Legal action: If a student defaults on their loan, the bank or financial institution may take legal action to recover the debt, including wage garnishment, seizing assets, and filing a lawsuit.
- Financial penalties: If a student misses loan payments or defaults on their loan, they may have to pay additional fees or penalties, which can increase the total amount they owe.
- Difficulty in getting a job: If a student has a defaulted loan on their credit report, it can make it difficult for them to get a job, as many employers check the credit reports of job candidates.
- Difficulty in getting a loan in the future: If a student defaults, it won’t be easy to get approved for future loans.
The student needs to contact the bank or financial institution as soon as they realize they will have difficulty making a payment, as many loan providers may have options for loan restructuring, modification, and consolidation, which can help the student manage the loan better.
How Much Percentage Is Required To Be Eligible For Education Loan?
Most banks have similar eligibility criteria for education loans, which typically include the following:
- Minimum percentage of marks: Most banks require the student to have a minimum percentage of marks in their previous academic examination, usually around 55-60% in the case of graduation and around 50-55% for a higher secondary examination.
- Admission to an approved institution: The student should have been admitted to an institution approved by the bank or the government for providing education loans.
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Can I get hostel fees in education loan?
Most of the banks and financial institutions in India offer education loans for tuition fees, hostel fees, examination fees, library fees, laboratory fees, and other charges. These other charges will be considered part of the education loan if they are payable to the institution. It’s important to note that the student must submit the bills and receipts as proof of payment for the fees they want to include in the education loan.
Can I take my education loan amount directly to bank account?
After your loan is approved, the bank or financial institution will disburse the loan amount to the student. Some banks or financial institutions may disburse the loan amount directly to the educational institution to pay fees. In contrast, others may disburse the loan amount to the student’s account.