"We love the idea of Vietnam for our child, but we don't have ₹30–40 lakhs sitting in the bank."
We hear this from parents every single week. And our answer is always the same:
You don't need to have it sitting in the bank. That's what education loans are for.
The truth is, the majority of Indian students who go abroad for MBBS — including many who study at Can Tho, PCTU, Dai Nam, BMTU, and Dong A through Divya Senthamizh — do so with the support of an education loan. It is a completely normal, widely accepted, and well-supported route.
But education loans can feel complicated. Different banks. Different rules. Confusing terms like collateral, co-borrower, moratorium, and CIBIL. Parents often spend weeks trying to figure it out on their own — and end up more confused than when they started.
This guide cuts through all of that. By the time you finish reading, you will know exactly which banks to approach, what they need from you, and step by step how the whole process works.
What Expenses Does an Education Loan for MBBS Abroad Cover?
Before we get into banks and interest rates, let's answer the most common first question: what exactly does an education loan cover?
A properly structured education loan for MBBS abroad covers:
- Tuition fees for the full duration of the course
- Hostel and accommodation expenses
- Travel costs (to and from Vietnam)
- Books, equipment, and study materials
- Health insurance
- Daily living expenses (within reasonable limits)
So when we say the total cost of MBBS in Vietnam is ₹30–40 lakhs across 6 years, an education loan can potentially cover all of it — not just the tuition portion.
Is Getting an Education Loan for MBBS in Vietnam Actually Possible?
Yes, and here is why banks are generally willing to fund it:
Vietnam medical universities like Can Tho, PCTU, Dai Nam, BMTU, and Dong A are listed in the World Directory of Medical Schools (WDOMS) and comply with NMC (National Medical Commission) guidelines. This matters enormously to banks. Lenders feel confident funding MBBS at NMC-recognised foreign universities because:
- The course leads to a recognised medical degree
- Graduates can appear for the NEXT exam and practise in India
- A doctor's career trajectory means a reliable path to repayment
Banks classify MBBS loans as lower-risk education loans compared to many other fields. That works in your favour as a borrower.
Key condition: The university must be NMC-recognised and listed in WDOMS. All five universities we work with at Divya Senthamizh meet this condition. We provide the official documentation confirming this to banks as part of our loan guidance support.
Two Types of Education Loans: Secured vs Unsecured
Before comparing banks, you need to understand the most important distinction in education lending:
Secured Loans (With Collateral)
You pledge an asset — usually residential property, land, or a fixed deposit — as security against the loan. If you cannot repay, the bank has the right to recover from that asset.
- Higher loan amounts available (up to ₹1.5 crore from government banks)
- Lower interest rates
- Longer repayment tenure (up to 15 years)
- Best suited for families who own property
Unsecured Loans (Without Collateral)
No asset is pledged. The bank evaluates the co-applicant's income, credit history, and the student's profile.
- Lower loan amounts (typically up to ₹7.5–10 lakhs from public banks; some private NBFCs go higher)
- Slightly higher interest rates
- Faster processing
- Best suited for families who do not own property or do not want to pledge it
For MBBS in Vietnam — where the total cost is ₹30–40 lakhs — most families opt for a secured loan from a government or private bank. If the loan requirement is lower (say ₹15–20 lakhs for certain universities), some NBFCs offer unsecured options to strong applicant profiles.
Major Banks and Lenders: Compared
Here is an overview of the main options available to Indian students funding MBBS abroad:
1. State Bank of India (SBI) — Global Ed-Vantage Scheme
SBI is the most popular choice among families pursuing MBBS abroad, and for good reason: it offers the lowest interest rates among public banks.
| Feature | Details |
|---|---|
| Maximum Loan Amount | Up to ₹1.5 crore (with collateral) |
| Interest Rate | Approximately 10.5–11.5% per annum (floating, linked to MCLR) |
| Repayment Period | Up to 15 years |
| Collateral Required | Yes, for loans above ₹7.5 lakhs |
| Processing Time | 4 to 8 weeks |
| Processing Fee | ₹10,000 (flat) |
Why families choose SBI: The interest rate is consistently 1–2% lower than private banks. Over a 15-year repayment, even a 1% difference saves lakhs.
The trade-off: SBI takes longer to process applications than private lenders — typically 4 to 8 weeks. Start early.
What SBI checks for Vietnam MBBS: The university must be NMC-recognised and listed in WDOMS. SBI branches may ask for a confirmation letter — Divya Senthamizh provides this as part of our support.
2. Bank of Baroda — Baroda Scholar Scheme
Bank of Baroda is another strong government bank option, with competitive terms for abroad education loans.
| Feature | Details |
|---|---|
| Maximum Loan Amount | Up to ₹1.5 crore (with collateral) |
| Interest Rate | Approximately 10.85–11.05% per annum |
| Repayment Period | Up to 15 years |
| Collateral Required | Yes, for loans above ₹7.5 lakhs |
| Processing Time | 3 to 6 weeks |
Bank of Baroda is particularly useful for students in regions where SBI branches have long queues or slow turnaround times. Processing is marginally faster.
3. Axis Bank
Axis Bank is a private sector option with a higher loan ceiling and faster processing than government banks.
| Feature | Details |
|---|---|
| Maximum Loan Amount | Up to ₹50 lakhs |
| Interest Rate | From approximately 11.5–13% per annum |
| Repayment Period | Up to 15 years |
| Processing Fee | Approximately 2% of loan amount |
| Processing Time | 2 to 4 weeks |
Note: Axis Bank requires confirmation of NMC recognition for the chosen university. Their interest rate is higher than SBI, but faster processing makes them preferred by families with tighter timelines.
4. HDFC Credila (Now Credila Financial Services)
Credila is an NBFC (Non-Banking Financial Company) that specialises exclusively in education loans. It is not a bank, but it is one of the most student-friendly lenders in India.
| Feature | Details |
|---|---|
| Maximum Loan Amount | Up to ₹1.5–2 crore |
| Interest Rate | Approximately 12–14% per annum (profile-dependent) |
| Repayment Period | Up to 15 years |
| Collateral | Optional for strong profiles |
| Processing Time | 2 to 3 weeks (fastest among all options) |
Why families choose Credila: Fastest processing. They offer collateral-free loans to applicants with strong co-borrower income and a good CIBIL score. This is a lifeline for families who do not own property but have steady income.
The trade-off: Interest rates are higher than SBI by 2–3%. Over a long repayment tenure, this adds up. Only choose Credila without collateral if there is genuinely no property to pledge. If you have property, SBI or Bank of Baroda will cost you less overall.
5. Vidya Lakshmi Portal — Government's One-Stop Loan Platform
This is not a separate bank. The Vidya Lakshmi Portal (vidyalakshmi.co.in) is a government-launched digital platform that allows students to apply to multiple banks simultaneously using a single Common Education Loan Application Form (CELAF).
As of 2025, more than 48 banks are registered on this portal. Key benefits:
- Apply to multiple banks with one form
- Compare interest rates, eligibility, and loan limits side by side
- Track your application status in real time
- Access information on government scholarships alongside loans
For MBBS in Vietnam, students can search for "abroad studies" loans on the portal and see which registered banks cover their chosen university. It is a great starting point for first-time loan seekers who want to compare options before approaching individual banks.
Who Is Eligible? Complete Eligibility Criteria
While specific requirements vary by bank, most lenders follow these general eligibility standards for MBBS abroad loans:
Student eligibility:
- Indian citizen
- Age typically between 16 and 35 years at time of application
- Minimum 50% marks in Physics, Chemistry, and Biology in Class 12
- Valid NEET scorecard (mandatory, as NEET qualification is required for NMC eligibility to practice in India)
- Confirmed admission letter from an NMC-recognised medical university abroad
Co-applicant eligibility: A co-applicant is mandatory for almost all education loans. This is typically a parent or guardian.
- Stable, verifiable source of income (salaried or self-employed)
- CIBIL score preferably above 700 (a score below 650 can result in rejection or higher interest)
- Indian citizen
Collateral eligibility (for secured loans):
- Residential property, land, or commercial property (bank evaluates market value)
- Fixed deposits pledged in favour of the bank
- Property value typically needs to be 1.25–1.5 times the loan amount
Documents You Will Need
Gather these documents before approaching any bank or the Vidya Lakshmi Portal:
Academic documents:
- Class 10 and 12 mark sheets and certificates
- NEET scorecard
- Admission letter from the Vietnamese university (official letterhead)
- University fee structure document
- NMC recognition / WDOMS listing confirmation for the university
Identity and address documents:
- Passport (student)
- Aadhaar card
- PAN card (student and co-applicant)
- Passport-sized photographs
Co-applicant income documents:
- Last 3 months' salary slips (salaried) OR last 2 years' ITR with computation (self-employed)
- Bank statements for the last 6–12 months
- Form 16 or income certificate
Collateral documents (for secured loans):
- Property documents (title deed, sale deed, Encumbrance Certificate)
- Property tax receipts
- Valuation report (bank arranges their own valuer — budget 1–2 weeks for this)
Tip from Divya Senthamizh: Organise all documents in a clear, labelled folder before visiting the bank. Incomplete document sets are the most common cause of delays. We provide our students with a personalised document checklist and verify everything before they approach a bank.
Step-by-Step: How to Apply for an Education Loan for MBBS in Vietnam
Step 1: Get Your Admission Letter First
The loan process begins only after you have a confirmed admission letter from a Vietnamese medical university. Banks will not process a loan application without this document.
If you have not yet secured admission, that is your first step. Contact Divya Senthamizh — we will help you select the right university for your NEET score and budget, and guide you to your admission letter.
Step 2: Know Your Loan Requirement
Calculate the total cost of your MBBS — tuition + hostel + food + travel + miscellaneous — for all 6 years. This gives you your loan amount. For MBBS in Vietnam, this typically falls in the range of ₹25–40 lakhs depending on the university.
Knowing the exact amount helps you approach the right lender (SBI for amounts up to ₹1.5 crore with collateral; Credila if collateral-free is needed).
Step 3: Check Your Family's Collateral Position
The single biggest factor determining which bank is right for you is whether your family owns eligible property.
- If yes, go to SBI or Bank of Baroda first — lower interest rate over the long run.
- If no, or if the property is not clear of encumbrances, consider Credila with a strong co-applicant income profile.
Step 4: Visit the Bank Branch (or Apply via Vidya Lakshmi Portal)
For government bank loans, visiting your nearest branch directly is recommended. Bring your complete document set.
Alternatively, register on vidyalakshmi.co.in, fill out the CELAF (Common Education Loan Application Form), and apply to multiple banks simultaneously.
For Credila or Axis Bank, you can apply online through their websites and upload documents digitally.
Step 5: Bank Conducts Credit Appraisal
After receiving your application, the bank will:
- Verify academic documents and admission letter
- Assess the co-applicant's income and CIBIL score
- If collateral is involved, arrange a property valuation (adds 1–2 weeks)
- Review the loan amount against the university's fee structure
This stage is the heart of the process. Do not rush it. Answer bank queries promptly and provide any additional documents requested without delay.
Step 6: Receive Your Sanction Letter
Once the bank is satisfied with the appraisal, they issue a Sanction Letter — the formal approval of your loan. This letter states:
- The approved loan amount
- The interest rate applicable
- Repayment tenure and EMI structure
- Conditions to be met before disbursement
Read every line of the sanction letter carefully. If anything is unclear, ask the bank to explain before signing.
Step 7: Loan Disbursement
Once you accept the sanction letter and complete any remaining formalities (such as signing the loan agreement), the bank disburses the loan. For MBBS abroad, disbursement typically happens in tranches — one tranche per year of study, aligned with when the tuition fee is due to the university.
The bank usually disburses directly to the university account, not to your personal account. This is standard practice and keeps everything transparent.
Step 8: Moratorium Period — You Don't Repay Yet
Here is one of the most student-friendly features of education loans: the moratorium period.
During your MBBS course (6 years) and for a period of 6–12 months after course completion or after you get a job (whichever is earlier), you are not required to pay EMIs. Interest continues to accrue during this period, but you are not making repayments.
Repayment starts once you have completed your studies and cleared the NEXT exam. By then, you are practising as a doctor — and the loan becomes manageable against your income.
Tax Benefit: Section 80E
Here is something many families do not know: interest paid on an education loan is fully deductible under Section 80E of the Income Tax Act — with no upper limit.
This means every rupee of interest you repay reduces your taxable income. The deduction is available for 8 consecutive years from the year you start repaying. This effectively reduces the real cost of borrowing significantly for families in higher tax brackets.
Consult a tax advisor to maximise this benefit when repayment begins.
Tips to Maximise Your Chances of Loan Approval
After helping hundreds of families through the loan process, here is what we have seen make the biggest difference:
Start at least 3 months before your departure date. Government banks take 4–8 weeks. Property valuation adds more time. Starting early removes deadline pressure and prevents rushed decisions.
Choose an NMC-recognised university. Banks will reject loan applications for universities not listed in WDOMS or not compliant with NMC guidelines. Every university we work with at Divya Senthamizh is NMC-compliant — we will provide the documentation banks need.
Ensure the co-applicant's CIBIL score is above 700. If there are outstanding defaults or dues in the co-applicant's credit history, resolve them before applying. A CIBIL score below 650 is a common rejection reason.
Keep documents consistent. Your name must be spelled identically across all documents — Aadhaar, PAN, passport, admission letter. Even small discrepancies (middle name missing, spelling variation) can create delays.
Do not apply to too many lenders simultaneously. Each loan inquiry creates a "hard enquiry" on your CIBIL report. Multiple enquiries in a short period can lower the score. Be strategic — research, then apply to one or two most suitable lenders.
Do not wait for the full fee deadline to approach the bank. Start the loan process the day you receive your admission letter. Banks work on their timeline, not yours.
How Divya Senthamizh Helps with Education Loans
We are not a bank. We do not disburse loans. But we understand that for many families, the loan process is as stressful as the admission process itself — and we support you through it.
Here is how:
- We provide the official NMC recognition and WDOMS documentation that banks need for Vietnam universities
- We give you a detailed, university-specific fee structure letter on official letterhead — required for bank appraisal
- We guide you on which bank type suits your family's profile (collateral vs non-collateral)
- We help you organise your document set correctly before you approach the bank
- We coordinate with the university in Vietnam for any additional documentation banks request
Several of our families have told us that having this support made the bank visit feel manageable — rather than walking in uncertain about what to say or what to bring.
If you are planning to take an education loan and are worried about how it works, speak to us before approaching any bank. We will walk you through it.
Frequently Asked Questions
Is NEET score mandatory for getting a loan for MBBS in Vietnam? Yes. Since NEET qualification is mandatory for NMC eligibility (and therefore for practicing medicine in India after MBBS abroad), banks typically require the NEET scorecard as part of the loan application. It also signals academic seriousness to lenders.
Can I get a loan without collateral for MBBS in Vietnam? For a ₹30–40 lakh requirement, collateral-free loans are difficult from government banks (their unsecured limit is typically ₹7.5–10 lakhs). Credila offers collateral-free options to strong profiles, but at a higher interest rate. If you need the full amount without collateral, speak to us — we will guide you on the most practical path.
What if my parents are self-employed with irregular income? Self-employed co-applicants need to provide the last 2 years' Income Tax Returns (ITR) with computation and business bank statements. Banks assess average annual income from these. It is harder than a salary slip but not impossible. Having a good property as collateral alongside this strengthens the application significantly.
Can I repay the loan before the tenure ends? Yes. Most banks allow pre-closure of education loans. Some charge a minimal pre-closure fee; others (like Credila, which advertises zero prepayment charges) do not. If you have the funds to repay early, doing so reduces your total interest outgo.
What happens if I am unable to repay after MBBS? If you are facing genuine hardship, approach your bank before you default — not after. Banks have provisions for rescheduling EMIs, extending tenure, or temporary relief. Defaulting without communicating damages your credit history and can lead to legal recovery action on the collateral.
Can I apply for a loan after arriving in Vietnam? No. The loan must be secured and the first disbursement arranged before or at the time of fee payment to the university. Apply before departure — ideally 2–3 months ahead.
A Word for Parents Who Are Hesitant About Loans
We understand the discomfort many Indian families feel about taking a loan of ₹30–40 lakhs. It feels like a large commitment. It is.
But here is the perspective we offer to every parent we speak with:
A private medical college seat in India costs ₹80 lakhs to ₹1 crore or more — and many of those institutions require capitation fees upfront, in cash. The loan burden for those families is far greater.
In Vietnam, the total cost is ₹30–40 lakhs across 6 years, disbursed in annual tranches. Repayment starts only after your child graduates and clears NEXT. By then, they are a qualified doctor — an NMC-registered medical professional with a career ahead of them.
The loan does not stay with you forever. The degree does.
Ready to Plan Your Child's MBBS Abroad?
Whether you are at the stage of exploring Vietnam as an option or have already received your admission letter and need loan guidance, we are here.
At Divya Senthamizh, we have helped hundreds of students from Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, and across India navigate both the admission and the financial journey of MBBS in Vietnam. We know the banks, we know the documents, and we know how to make the process manageable for your family.
📞 Call us: +91 9659637137 | +91 9787661818 📧 Email: divyasenthamizhedu@gmail.com 📍 Office: No. 52, Easwaran Kovil Lane, Mela Ilandaikulam, Alandur, Chennai – 600016
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Divya Senthamizh (Aieraa Overseas Studies) is a Chennai-based MBBS abroad consultancy with 12+ years of experience helping Indian students pursue medical degrees at top NMC-recognised universities in Vietnam. All loan information in this blog is for guidance purposes. Interest rates, loan limits, and bank policies are subject to change — always confirm current rates with the respective bank or lender before applying.
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