Education loans for MBBS abroad

Who lends for MBBS abroad

• Public sector banks: usually the lowest interest rates; larger amounts need collateral such as property or fixed deposits.
• Private banks: faster processing; collateral rules vary.
• NBFCs (non-bank lenders): more flexible and often collateral-free up to a limit, but usually at higher interest.

Each lender keeps a list of countries and universities it will fund. Check that your university is on it before you apply.

What lenders look for

• An admission letter from a recognised university and the full fee structure.
• A parent or guardian as co-applicant, with steady income and a good credit score.
• Collateral for larger loans, depending on the lender.

Documents usually needed

• Admission letter and fee structure
• Class 10 and 12 marksheets and NEET scorecard
• Student and co-applicant ID and address proof (Aadhaar, PAN, passport)
• Co-applicant income proof: salary slips, Form 16 or income tax returns
• Bank statements for the last six months
• Property or deposit papers, if collateral is offered

Repayment and tax

Most education loans have a moratorium: no repayment during the course and for a short period after. Ask whether interest is charged during this time, because it adds to what you owe.

Interest paid on an education loan can be deducted from taxable income under Section 80E of the Income Tax Act, for up to eight years. The deduction is for interest only, not principal, and is available under the old tax regime. Confirm with a tax adviser.

We help with the admission letter, fee structure and university documents that lenders ask for. We do not take any commission from lenders.

Common questions