7 Tips for Successful Education Loan for MBBS in Russia
Expert guidance for Education Loan for MBBS in Russia
Ever dreamt of becoming a doctor but felt Indian medical college fees were giving you a shock? Don’t let sky-high costs block your path to a fulfilling medical career! Here’s the good news: MBBS in Russia offers a world-class medical education at a fraction of the price you’d pay in India. But even with those sweet savings, financing your MBBS journey might still feel like a complex surgery.
This blog will provide knowledge and actionable steps to conquer the world of education loan for MBBS in Russia.
Table of Contents
Introduction:
Education loans have become an integral part of financing higher education in India, especially for courses like MBBS that require studying abroad. With the high cost of overseas MBBS programs, taking an education loan is the most viable option for many aspiring Indian doctors.
The demand for education loans has surged over the years with more students opting to pursue MBBS and other medical courses abroad. Banks and financial institutions are now offering customized loan products catering specifically to the needs of students going for higher education in medicine.
Education loans help students fund the entire cost of studying MBBS abroad, including tuition fees, travel expenses, cost of living etc. The repayment options are flexible with moratorium periods that allow students to start repaying only after completing the course and finding employment. As higher education, especially in medicine, leads to good career prospects and salaries, banks see education loans as secure investments.
With major banks like SBI, HDFC, Axis Bank and others offering education loans for studying MBBS in countries like Russia, Ukraine, Philippines etc. financing overseas medical education has become more accessible for students from middle-class families. The introduction of collateral-free loans up to certain limits has also made the process hassle-free for students without security to offer.
Overall, education loans have enabled many students to fulfill their dream of becoming a doctor by studying MBBS abroad. With the right research and planning, students can get funding from banks to cover the expenses of their medical education overseas.
Benefits of Studying MBBS in Russia
Studying medicine in Russia has become an increasingly popular choice for Indian students due to the high quality of education and affordable tuition fees.
- Russian medical universities provide education that meets international standards. The MBBS degrees offered are recognized by the World Health Organization (WHO) and Medical Council of India (MCI). This allows students to practice medicine globally after completing their degree.
- The curriculum at Russian medical colleges is designed to provide students with strong theoretical knowledge and extensive practical training. The programs focus on hands-on clinical exposure from the beginning to develop competent doctors.
- Faculty members comprise highly qualified professionals and medical experts. The teacher-to-student ratio is low, enabling personalized attention and effective learning.
- Students get access to top-notch infrastructure, including well-equipped laboratories, libraries, lecture halls, and hospitals for training. The colleges are globally ranked for their facilities and teaching standards.
- Most Russian universities teaching medicine are government institutions with decades of experience. They have produced skillful doctors who excel in various parts of the world.
- After graduating from Russian medical schools, students can appear for screening tests like FMGE/NEXT to practice in India. The pass percentage for these exams is high among graduates from Russia.
- Compared to studying medicine in private colleges in India or other Western countries, the tuition fees in Russia are very affordable. This makes quality medical education accessible to more students.
Cost of Studying MBBS in Russia
Pursuing an MBBS degree in Russia can be an affordable option compared to many other countries. Here’s a breakdown of the typical costs involved:
Tuition Fees
- Tuition fees at Russian medical universities range from Rs.2.5 Lakh to Rs.5.8 Lakh per year on average. This is significantly lower than private medical colleges in India which can charge upwards of ₹50 lakhs for the entire course.
- Top institutions like Moscow State University charge higher fees of around $5000 per year. Still, this is cheaper than options in the US or UK.
Living Expenses
- Cost of living in Russia for international students is estimated to be about ₹12,000 – ₹15,000 per month on average. This covers food, accommodation, local transportation, utilities, internet etc. However, living expenses vary by city.
- Metro cities like Moscow and St. Petersburg have higher living costs while smaller student cities tend to be more affordable. Shared student apartments can further reduce rental costs.
- Many universities provide hostel accommodation on campus. This is a budget-friendly option with shared rooms and basic amenities provided.
Other Expenses
- Additional expenses of around ₹50,000 – ₹1 lakh per year would be required to cover textbooks, stationery, winter clothing, medical insurance, visa fees etc.
- Airfare can cost ₹30,000 to ₹50,000 for a round trip.
Total Cost Breakdown
- Based on the above estimates, the total cost of studying MBBS in Russia fees can range between ₹15-35 lakhs for the entire 6 year duration. This is 60-70% lower than the cost of pursuing MBBS in private medical colleges in India.
- With prudent financial planning, education loans, and potential scholarship options, Russia can be an affordable destination to pursue your medical dreams. The high-quality education and global exposure make it worth the investment.
Eligibility Criteria for Education Loan for MBBS in Russia
To be eligible for an education loan for pursuing MBBS in Russia, students need to meet certain criteria set by the bank. The key factors considered are:
- Academic Records – Most banks require the student to have scored a minimum of 50% marks in class 12th exams. Some banks may also look at the past academic performance in 10th standard exams. Students from science stream are generally preferred.
- Collateral – Banks usually ask for collateral or security against the loan amount. This is to ensure repayment of the loan in case the student is unable to pay back. Collateral can be in the form of property, fixed deposits, insurance policies etc. Parents or guardians need to pledge assets as collateral.
- Credit History – Banks check the applicant’s credit history and CIBIL score. Those with a good credit history and score above 750 are more likely to get the loan approved. If there are previous defaults, the loan application can get rejected.
In addition to the above, factors like annual family income, employment records of parents/guardians are also evaluated. The cost of education and living expenses in Russia will be considered while sanctioning the loan amount. Meeting the eligibility criteria set by banks is important for students to get an education loan approved for pursuing MBBS in Russia.
Major Banks Offering Education Loan for MBBS in Russia
India has numerous public sector and private banks that provide education loans to students aspiring to study MBBS in Russia. The major banks offering loans are:
State Bank of India (SBI): SBI offers education loans under its Vidya scheme. Students can avail up to Rs. 20 lakhs without any collateral for courses abroad. The interest rate is linked to the External Benchmark Lending Rate (EBLR) and is very competitive.
Bank of India (BOI): BOI provides education loans under the Vidya Laxmi scheme. Students can get loans up to Rs. 30 lakhs based on eligibility. The interest rate is also linked to EBLR.
Punjab National Bank (PNB): PNB offers education loans under its Swarna Yojna scheme. Students can get collateral-free loans up to Rs. 20 lakhs for studying in Russia. The interest rate is competitive and linked to the repo rate.
Union Bank of India: Union Bank provides education loans under the Union Scholar scheme. The maximum loan amount is Rs. 30 lakhs and the interest rate is linked to the marginal cost of funds based lending rate (MCLR).
Canara Bank: Canara Bank offers education loans to students planning to study medicine in Russia under the Vidya Jyoti scheme. Students can avail loans up to Rs. 30 lakhs based on eligibility at attractive interest rates.
The education loan processing is quite smooth if students meet the eligibility criteria set by the banks. The interest rate and repayment options are also very competitive.
Required Documents for Education Loan for MBBS in Russia
To apply for an education loan for studying MBBS in Russia, students will need to submit certain documents to the bank. The key documents required are:
- Identity and Age Proof – This includes documents like Aadhaar card, PAN card, driving license, passport, or birth certificate. These documents establish the identity of the student applying for the loan.
- Admission Letter – Students need to submit the unconditional admission letter from the medical university/college in Russia where they have secured admission. This letter acts as proof of admission.
- Marksheets of Class 10 and 12 – Applicants need to submit their marksheets of class 10 and 12 exams to provide their academic track record. Some banks may also ask for school leaving certificates.
- Cost Breakdown – A detailed cost breakdown of the total expenses for the MBBS course needs to be provided. This includes tuition fees, hostel fees, travel expenses, cost of books/materials, and other costs. An itemized breakup establishes the total loan amount required.
- Income Proof of Parent/Guardian- Documents like salary slips, Form 16, income tax returns, etc need to be submitted to prove the income of the parent/guardian who will stand as guarantor for the loan.
- Collateral Documents – If applying for a secured loan, then documents relating to the collateral like property papers, NSC certificates, etc need to be provided.
Submitting the necessary documents in a timely manner is important for quick processing and disbursal of the education loan. Students must ensure they have all the latest updated documents before applying.
Types of Education Loans
There are two main types of education loans available for Indian students pursuing MBBS in Russia: secured and unsecured loans.
Secured Loans
Secured loans require collateral or security to be pledged against the loan amount. This provides the bank with an asset that can be liquidated if the borrower is unable to repay the loan. The most common types of collateral for secured education loans are:
- Fixed deposits in the name of the student or parent/guardian
- Non-agricultural land or house property
- Government securities, Kisan Vikas Patra, LIC policy, gold, etc.
Secured loans typically have lower interest rates compared to unsecured loans. They also allow you to borrow larger loan amounts.
Unsecured Loans
Unsecured loans do not require any collateral or security. The lender provides the loan amount based solely on the borrower’s creditworthiness.
- Unsecured loans have higher interest rates, often 1-2% above secured loan rates. The maximum loan amount is also lower, usually capped at Rs. 7-10 lakhs.
- Unsecured loans are a good option for families who do not have adequate assets to pledge as security. However, strong income documents need to be provided to demonstrate repayment capacity.
- The choice between a secured and unsecured loan depends on your specific financial situation. Unsecured loans involve more risk for the lender, so your eligibility and loan amount will be limited. But they provide more flexibility if you lack collateral assets.
Collateral Options
The two main types of assets that can be pledged as collateral for a secured education loan are:
- Property: This includes residential property like an apartment or independent house. Banks usually provide loans up to 60-70% of the property value. The property needs to be located in India and fully paid for. Parents can pledge property they own as collateral for their child’s education loan.
- Fixed Deposits: Banks accept fixed deposits in the name of the student or parent as collateral for an education loan. The FD amount should cover the loan amount sanctioned. The tenure of the FD should align with the loan repayment period. FDs help secure lower interest rates compared to an unsecured loan.
Pledging property or FDs as collateral for an education loan to study MBBS in Russia can help students secure financing more easily from banks. It also leads to better loan terms and conditions. However, not everyone may have assets to pledge, in which case they can still get approved for unsecured loans at higher interest rates. Students should carefully assess their options.
Repayment Options
Students who take education loans for studying MBBS in Russia have flexible repayment options.
- Moratorium Period: Most banks offer a moratorium or grace period after completing the course before the repayment begins. This period ranges from 6 months to 1 year depending on the bank. During this time, the student can find employment and stabilize their finances before starting the EMI payments.
- Repayment Tenure: The repayment tenure is the time period over which the loan will be repaid. For education loans, this is usually 10-15 years. Some banks like SBI offer repayment tenure up to 20 years. Having a longer repayment period means lower EMIs and more manageable cash flows for the student.
The exact moratorium period and repayment tenure will depend on the bank’s terms and conditions. Students should evaluate all options to choose the most suitable repayment structure for their needs. The key is planning the repayment schedule in advance to avoid payment issues later.
Conclusion
Studying MBBS in Russia can be an excellent option for Indian students looking for quality medical education at an affordable cost. However, financing the Education Loan for MBBS in Russia requires careful planning and understanding of the education loan process in India.
Some key takeaways:
- The total cost of studying MBBS in Russia can range from ₹15-35 lakhs. This includes tuition fees, hostel fees, cost of living etc.
- Most major banks in India like SBI, PNB, Bank of Baroda etc. offer loans for studying MBBS in Russia.
- Both secured and unsecured loans are available. Secured loans require collateral like property, gold, securities etc. Unsecured loans depend on factors like income, credit score etc.
- Repayment usually begins 1 year after completion of the course. Banks provide moratorium periods and repayment tenures up to 15 years.
- Proper documentation like admission letter, passport, co-applicant papers need to be in place before applying for the loan.
Financing an overseas education requires diligent planning and comparing of options well in advance. Students should shortlist universities and courses, estimate costs, research loan options and apply on time. Taking the right steps can ensure you get funding without hiccups and make the most of this opportunity.
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