Education loan for MBBS in Germany is provided by a lot of banks and NBFCs in India. Germany is one of the best study-abroad destinations and is quite popular among international students. In the academic year 2023-24, there were around 42,997 in Germany pursuing different courses. A lot of students take education loans to study in Germany. MBBS is one of the most expensive courses not only in Germany but also in other major study-abroad destinations for which a lot of students take education loans. To know more about education loans for MBBS in Germany and the major features of the loan, continue reading further.
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Why Should You Take Education Loan for MBBS in Germany?
Taking an education loan to pursue an MBBS in Germany can help you cover all major expenses like tuition fees, accommodation costs etc. Germany is renowned for its high-quality education system, medical facilities, and comprehensive training programs. Despite the affordability compared to other countries, the cost of living and other expenses can still be a bit high. An education loan for MBBS in Germany can help to cover all these expenses which will allow students to focus on their studies without the stress of financial burden. Many banks offer flexible repayment options and low interest rates for meritorious students.
Also Read: Planning to make a career in law from abroad? Check here all about LLB Education Loans to study abroad
Best Banks for Education Loans for MBBS in Germany
There is a total of 91 commercial banks in India including public and private sector banks. Most of these banks offer education loans for MBBS in Germany at affordable interest rates and flexible repayment period. As per the RBI Guidelines on education loans, you can up to INR 7.5 lakh without collateral. Some of the best banks are Indian Overseas Bank, Canara Bank, IDFC First Bank, HSBC etc. Check the major features of education loans from top banks below:
| Major Banks | Features of Education Loan |
| Indian Overseas Bank (IOB) | -Rate of interest starting from 9% -Low rate of interest on loans below INR 7.5 lakh -1% special discount if interest is served during the moratorium period |
| Canara Bank | -No collateral is required for loans up to INR 7.5 lakh -Need-based finance available -15% margin for loans above INR 4 lakh |
| IDFC First Bank | -INR 50 lakh education loan available without collateral -Only 1% processing fee -Repayment holiday of course period + 1 year |
| HSBC | -Loan available from INR 15 lakhs to INR 30 lakhs -Interest rate starting from 9.25% -Quick sanctions within 72 hours |
| UCO Bank | -Up to INR 20 lakh education loan to study abroad -15% margin money for loans above INR 7.5 lakh -Group Life Insurance Cover Scheme for Educational Loan Borrowers is available |
Best NBFCs for Education Loan for MBBS in Germany
Some of the best NBFCs for education loans to study MBBS in Germany are Avanse, InCred, TATA Capital, HDFC Credila etc. A lot of NBFCs also offer unsecured education loans for B.Tech from Germany. Check some major features of the loan offered by these NBFCs below:
| NBFCs | Major Loan Features |
| HDFC Credila Education Loan | -Interest rate starting from 9.5% -Collateral-free education loans of up to INR 80 lakh -100% expenses covered |
| TATA Capital Education Loan | -Up to INR 2 crore education loan -Interest rate starting from 10% -Collateral-free loans up to INR 75 lakh |
| InCred Education Loan | -Margin money of from 5 to 15% (based on creditworthiness) -Processing fee of up to 1% of loan + GST -Online application process |
| Avanse Education Loan | -Up to 100% finance for course fees and other expenses -Education loan facilities available for more than 30,000 courses -You can get up to INR 75 lakh education loan |
Eligibility Criteria
The eligibility criteria for an education loan for MBBS in Germany must be understood before applying for an education loan. Some of the basic eligibility criteria include being an Indian citizen and securing admission to a recognised German medical university. Check other essential criteria below:
- The student must be an Indian citizen
- The age of the student shall be between 18 to 35 years of age
- Applicants should have a strong academic record, usually reflected in a minimum percentage of their higher secondary exams
- Most banks require a co-applicant, who could be a parent or guardian, with a stable income to act as a guarantor
- The loan amount is based on the cost of education and living expenses so you need to provide a cost break up
Also Read: Want a quick education loan at low interest rates? Check here all about Gold Loan for education
Documents Required for Education Loan
One of the major stages in an education loan is to complete the documentation process. Students must submit all the documents properly so that the loan can be approved quickly. Check the details of the major documents required for an education loan for MBBS in Germany below:
- Filled and signed loan application form from the bank.
- Passport, Aadhaar card, PAN card, or any other valid ID.
- Utility bills, ration cards, Aadhaar cards, or rental agreements.
- Mark sheets and certificates of 10th, 12th, and any higher education.
- Admission letter from a recognised German medical university.
- Detailed fee breakdown from the university.
- ID proof, address proof, and income proof (salary slips, IT returns, bank statements) of the co-applicant.
- Bank statements, salary slips, or income tax returns of the applicant and co-applicant.
- Property documents if you are taking a secured loan.
- Recent photographs of the applicant and co-applicant.
- Last six months’ bank statements of the applicant and co-applicant.
FAQs
Interest rates for education loans vary by bank and depend on several factors like the loan amount, repayment tenure, and the applicant’s credit profile. The interest rates range from 8% to 12% per annum.
The approval process for an education loan can take anywhere from a few days to a few weeks. The duration depends on the accuracy of the submitted documentation, the bank’s internal processes, and any additional verification required.
Yes, education loans for MBBS in Germany cover not only tuition fees but also living expenses, including accommodation, food, travel, and other personal expenses.
Education loans up to a certain amount (INR 7.5 lakhs) may be granted without collateral. For higher loan amounts, banks generally require collateral, which could be in the form of property, fixed deposits, or other valuable assets.
Repayment terms for education loans usually begin after a moratorium period (course period + 1 year or 6 months after getting a job). The repayment tenures can range from 5 to 15 years, depending on the loan amount and the lender’s policies.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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