How to get an education loan to study in top Medical colleges of Bangladesh
Studying MBBS is not a cheap affair. A middle-class family thinks of taking loans for MBBS in India or abroad. As Bangladesh is a hot destination for MBBS you may think that will the banks and the financial bodies in India will provide education loans or not. To pursue an MBBS degree from an overseas institution the students think of getting educational loans.
Education loan is a primary funding source for many middle-class families in India. With the total cost of studying MBBS in Bangladesh along with the other expenditure, it is convenient to go for an education loan. Students often find it difficult to arrange to fund and trust any bank that is lending them money. But it is not impossible to know how to get an education loan to study in top Medical colleges of Bangladesh. This article is the complete guide for this.
Abroad Education loan in India
To sanction some kind of loan in India the borrower need to keep some assets for the lender as collateral security. Overseas education loans in our country are widely categorized into secured loans and unsecured loans, based on the demand for this collateral security. To get or sanction a secured education loan to study MBBS Bangladesh, applicants need to give collateral security. On the other side, an unsecured education loan to study MBBS Bangladesh will not demand to pledge of collateral security. The parents of the medical aspirants face challenges to get secure unsecured loans to study MBBS, as these loans are passed based on the student’s academic career and financial profile. In India, unsecured loans to study MBBS Bangladesh are provided by private banks such as the HDFC Bank, Axis Bank, ICICI Bank, etc and Non-Banking Finance Companies (NBFCs).
Details of unsecured education loans
In case of an unsecured education loan, you do not have to pledge any collateral security. These types of loans, a concrete verification of the applicant is made and is purely based on the academic career. In India, some of the private Banks and Non-Banking Finance Companies provide unsecured education loans. The loan that you take under unsecured education loans charges a higher rate of interest as compared to the government bank education loans. The education loan interest rate lend by the private banks and Non-Banking Finance Companies depends on several actors. The overall interest rate to study MBBS Bangladesh that is charged by the private banks without any collateral security varies from 11.5 to 14.9%. As there is no collateral security for unsecured education loans so the financial bodies took a close look at the background of the college where the student wishes to pursue the MBBS course.
Unsecured Education loans for MBBS in Bangladesh
The students with excellent academic records can expect unsecured education loans to study MBBS in the US, UK, Germany, etc. But students who study MBBS in Bangladesh, China, Ukraine find it difficult to get educational loans from private banks. Some of the private banks do not have Bangladesh on their list to lend educational loans for MBBS. In such a scenario, students can rely on Secured Educational loans from government Banks.
Details of Secured Educational loans
This type of loan is provided to the students in exchange o collateral security. Many students find it an opt option to get loans for MBBS in Bangladesh from the government banks. Some of the government banks that lend money are State Bank of India, Bank of Baroda, and Punjab National Bank. As the government is providing these loans so this place becomes more trustworthy as compared to the unsecured education loans. So, if you are interested in taking educational loans for abroad studies in India you need to process your co-lateral security by talking to the banking agent of your nearest bank. Many students who wish to study MBBS Bangladesh, approach banks like State Bank of India, Bank of Baroda as they are directly under the Reserve Bank of India. As these banks offer competitive loan schemes for medical aspirants it becomes an opt option for the students.
Types of Collateral security
Collateral security is widely subdivided into tangible collateral security and in-tangible collateral security. Tangible collateral security is the immovable properties that fulfill the requirement of the financial body like lands. Intangible collateral security is liquid assets like FD. The detailed list o the collateral security that is accepted by the banks are as follows-
An immovable property is one of the most frequently used categories of properties as collateral for studying MBBS in Bangladesh. This involves assets like a house, a flat, a plot with defined boundaries, an independent house, a non-agricultural land, etc. falls under this criteria. The loan amount that will be granted by the bank must be of lesser value than the property you are lending. To get an education loan from any bank it is necessary that you arrange for collateral security without which loan sanction is not possible.
Did you know about the government banks also lend you educational loans against liquid assets like a fixed deposit? Assets such as government bonds, life insurance policies Fixed Deposits, from government-approved lenders, etc. are accepted by the government banks like State Bank of India, Bank of Baroda, Punjab National bank in exchange for education loans to study MBBS Bangladesh.
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State Bank of India and Bank of Baroda lend money against third party asset in case you do not have the other two options. If the parents of the student do have the above two assets or the value of the property does not match the loan amount then they can keep the third party’s asset as collateral security. The third-party means those who are not the immediate relative of the candidate. E.g., uncle, aunt, friends of the candidate and the primary co-applicant, etc.
Government Education loans for MBBS
Before you go to pick up educational loans you need to do thorough research on the interest rate at which the banks are lending the loan. The government educational interest rate is generally lower as compared to the private banks or Non-Banking Finance Companies. The interest rate for abroad education is determined by the lending banks through the Marginal Cost of Fund Based Lending Rate. This acts as a benchmark by which the different lending bodies decide the interest rate for education loans.
Various factors are taken into account to decide the MCLR like ensure premium, the marginal cost of funds, the operating cost, etc. In India, most of the overseas education loan interest rates depend on the MCLR. Most of the government banks calculate the interest rate as MCLR plus spread. Spread is the amount charged by the banks which refers to a premium value. The rate of interest in the government banks for overseas education varies from 9% to 10%. As the loan amount is sanctioned by the banks based on the collateral security so the loan amount can exceed up to 15 Crore.
Eligibility criteria for education loan
If you are seeking educational loans then you need to fulfill some of the eligibility criteria. If you fail to get an educational loan from the unsecured education loan then you can go for secured education loans from government bodies. The set of terms and condition that the government banks set are as follows-
#1. The academic career of the students needs to be bright. There should not have any backlogs in your academic career. With an active backlog, you will not be eligible for educational loans from government banks.
#2. The collateral security that you are keeping for the loan sanction must have greater value than the loan amount.
#3. For the co-applicant name, you will need someone with a strong financial background.
#4. If you want to study MBBS in Bangladesh banks like State Bank of India, Bank of Baroda is the best place to undertake a loan.
You can contact Pice Educare for more details on educational loans to study MBBS Bangladesh and other overseas destinations.
For MBBS Admission Enquiry Please Call or WhatsApp: +91-9932-625-163
Admission Helpdesk: +91-9614-910-910
How to process education loans to study MBBS Bangladesh?
You may find it a difficult process to apply for loans and find it a never-ending process. But Pice Educare can provide you significant details that make the process a more easy one. We guaranteed 100% that your loan will be sanctioned. If you are looking for an elaborate explanation on how to process your loan application then call us today. Our financial team members ensure that you get an abroad education loan without any hassle. To know more contact us today. While processing all the steps to study MBBS Bangladesh you might fall back in case of an educational loan. Situations arrive when you become tired by approaching different banks for getting an educational loan. Our team members actively help you in getting a loan so you can get a hassle-free experience.