Medical studies like MBBS or MD are among the most expensive courses in India or any other country. This is why, a large number of parents whose children want to make a career in the field of medicine prefer to avail of study loans. These are considered to be the ideal funding solution for covering all major and associated costs pertaining to the course. With this specific purpose in mind, lending institutions offer beneficial schemes such as an education loan on property for MBBS or an education loan on property for MD that assure borrowers of large capital to secure their child’s dream of becoming a doctor.
Fund Your MBBS with Study Loan on Property for Medical Studies
Students seeking admission for MBBS need to be prepared for the long haul as it can take around 5 to 6 years to complete the course in addition to draining significant financial resources. Government medical colleges do have provisions for concessional fees that bring down the cost of medical studies. However, seats are often limited and ensuring admission to any one of these institutions can be an uphill task.
In contrast, studying at a private institute can be extremely expensive, both within and outside India. While the general fee structure for an MBBS course may vary from Rs. 40 lakh to Rs. 60 lakh, some college fees could cross Rs. 1 crore.
Arranging cash of this magnitude can be tough and taking recourse to a student loan on property can provide much relief. Available with flexible repayment options, this secured credit solution lets you borrow sums up to a few crores against the current market valuation of your pledged property, which may be a residential or commercial self-owned house or plot of land.
Eligibility Criteria for an Education Loan on Property for MBBS/ MD
Borrowers are required to meet specific eligibility parameters in order to obtain a loan. Here are the standard particulars of education loan eligibility for MBBS and MD:
For Salaried Applicants:
- Applicants should be in the age group of 25 to 70 years
- They must be resident Indian nationals owning a property in any of the cities where the lender has its branch office
- They should be employed in the public or private sector or a reputed multinational company
For Self-Employed Individuals:
- They must be aged between 25 to 70 years old
- Applicants should be Indian citizens residing in a city where the lender operates
- They must show regular and consistent earnings from their business venture
Documents Required for MBBS/ MD Education Loan Against Property
A study loan against property requires several documents that must be furnished at the time of loan application. These could vary among lenders depending on their eligibility requirements. Given below is the general list of documentation:
For Salaried Applicants:
- Age and address proof
- Aadhar or PAN card
- Bank statements of the previous three months
- Latest salary slips
- Proof of income tax returns
- Documents concerning the mortgaged property
For Self-Employed Applicants:
- Age and address proof
- Aadhar card or PAN card
- Bank statements for the past six months
- Proof of business and relevant financials
- Documents of the mortgaged property
Things to Remember Before Taking Education Loan for MBBS/ MD Students in India or Abroad
There are a few essential factors that one must bear in mind before acquiring a student loan for MBBS and MD in India or overseas such as:
1. Calculate the Expenses
First of all, calculate the total cost of pursuing the course at your preferred institute. To accurately understand the finances involved; factor in tuition fees, application and registration charges, admission fees, air ticket fares, insurance and visa charges. You will need to further account for accommodation, food, travel, study material and other miscellaneous expenditures.
2. Know How Much You Need
Once you estimate the amount of money required for financing medical studies, evaluate it in relation to the money that you already have. This will give you clarity on how much cash actually needs to be borrowed.
3. Apply for Affordable Loan Sums
Take utmost care to apply for loan amounts aligned to your income for comfortable repayments. Avoid taking up higher principal sums even if you are deemed eligible as it could upset your budgetary planning.
How to Apply for an Education Loan Against Property for MBBS/ MD
The process to apply for a student loan on property for MBBS or MD is quite simple. Just follow the steps mentioned here:
- Log on to your lender’s official website
- Fill and submit the online application form
- A representative from the lender’s office will contact you and help you with the loan process
- After the processing is complete, they will notify you whether your application has been approved or not
- Once the loan is sanctioned, you will need to furnish the necessary documents
- Thereafter, the sanctioned amount will be disbursed into your account
Repayment Options for MBBS/ MD Student Loan Against Property
An education loan on property for MBBS or MD students necessitates sizeable borrowings, which calls for a prudent repayment strategy well ahead. Due to its secured nature, this loan facility carries a lower interest rate, automatically cutting down the cost of credit. If you possess an impeccable credit record and CIBIL score, it may provide further leverage while negotiating favourable terms with lenders. Moreover, when you opt for a floating rate loan, you can enjoy part pre-payments and foreclosures without incurring additional charges.
A flexible tenor also helps in a big way because it allows you to adjust the repayment period. Choosing a longer duration gives you more time to pay off the loan along with decreased EMIs per month. However, this option leads to a higher interest outgo increasing the price of your loan. Hence, select the loan tenor wisely keeping a keen eye on your monthly income and EMI affordability.
As a general rule, the cash you borrow against your property holds no restrictions on how it may be utilised. Thus, you may conveniently use it to address a range of requirements - be they academic, recreational or other requisite expenses. A secured education loan against property for MBBS or MD fulfils your child’s career dreams despite the quantum of expenses involved. A moratorium period is another added benefit as it reduces the repayment burden considerably.
If you are wondering how to finance that MBBS or MD course for your child, get cracking on finding the most competitive interest rates and keep the required documentation in order, to aid quicker loan approvals. Also, do note that a well-maintained property placed as collateral can fetch you a larger loan amount and attractive interest rates, so make sure you keep your house in mint condition to ensure improved market value through the mortgage.
