GoVietMed - MBBS in Vietnam Official Advisory
Loan EMI & Moratorium Calculator

Education loan EMI calculator for MBBS abroad

Generic loan calculators ignore that university fees are disbursed year-by-year and that interest builds up during your 6-year medical degree. Calculate realistic monthly EMIs and interest savings with our moratorium model.

Funding Covered by Education Loan:80% (₹41.79 Lakhs)
30%50%80% (Typical Bank Norm)100%
Estimated Monthly EMI
₹80,081 / mo
For 10 years (120 monthly instalments)
Total Interest Payable
₹54.31 L
Includes 84 months study & grace period
Total Amount Repaid
₹96.10 L
Principal ₹41.79L + Interest
Interest Saving Intelligence

Pay simple interest during study & save ₹11.02 Lakhs

If parents service the simple interest monthly during the 6-year course (approx ₹22,389/mo), the interest is not added to the principal, drastically lowering final EMI from ₹80,081/mo to ₹55,228/mo.

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How Education Loans for MBBS Abroad Work

Unlike a personal loan where the entire amount is credited to your bank account at once, an education loan for MBBS abroad operates as an overdraft or staged disbursement facility.

The bank issues an in-principle sanction letter for the full 6-year amount (e.g. ₹40 Lakhs). Each year, upon receiving the university's semester or annual fee invoice, the bank transmits the required USD installment directly to the university account via SWIFT. Interest accrues only on the funds actually drawn, not on the total sanctioned limit.

Moratorium Period: Why Servicing Interest Saves Substantial Money

Most public sector banks offer two options during the 7-year moratorium:

Option A: Capitalise Interest (Pay ₹0 During Study)You pay nothing while studying. However, simple interest is computed every month and added to your principal balance. By Year 7, your starting loan principal is significantly higher, resulting in a steeper monthly EMI.
Option B: Pay Interest Monthly (Recommended)Parents pay only the simple interest every month as disbursements occur (starting at ~₹2,500/mo and rising to ~₹20,000/mo in later years). This stops interest compounding and slashes your final post-graduation EMI.

Tax Deductions on Education Loan Interest

Under Section 80E of the Income-tax Act, 1961 (and corresponding provisions under the Income-tax Act, 2025 effective from April 1, 2026), an individual borrower can claim a tax deduction for the entire interest component paid on an education loan taken from an authorized Indian financial institution for higher education.

* Note: The deduction applies only to the interest component, not the principal repayment. There is no ceiling limit on the deduction amount for up to 8 consecutive tax assessment years.

Frequently Asked Questions on Education Loans

Can I get an education loan from Indian nationalized banks for MBBS in Vietnam?↓
Yes. Leading Indian public and private banks (including State Bank of India, Punjab National Bank, Canara Bank, Union Bank, and HDFC Credila) grant foreign education loans for medical degrees abroad, provided the foreign university is recognized by the World Health Organization (WHO) and listed in WDOMS.
What is the moratorium period on an MBBS abroad education loan?↓
The moratorium period is a payment holiday during your study. For MBBS in Vietnam, banks typically grant a moratorium covering the entire 6-year course duration PLUS an additional 12-month grace period (total 7 years or 84 months). Repayment of the loan principal begins only after this period.
Is collateral security mandatory for an education loan for MBBS abroad?↓
For loans up to ₹7.5 Lakhs under government schemes, collateral is generally not required. For amounts exceeding ₹7.5 Lakhs (typical for MBBS which requires ₹30L to ₹45L), banks mandate tangible collateral security such as residential property, commercial real estate, or fixed deposits.
Should we pay simple interest during the 6-year study course?↓
Yes, if financially feasible. Paying simple interest monthly during the study period prevents that interest from compounding and being added to your principal (capitalisation). As shown in our calculator, servicing interest monthly can save between ₹3 Lakhs and ₹6 Lakhs over the total loan lifecycle.
What is the estimated monthly EMI for a ₹40 Lakh education loan?↓
At an example interest rate of 10.0% p.a. over a 10-year repayment tenure with interest capitalised during the 7-year moratorium, the monthly EMI comes to approximately ₹68,000 to ₹72,000 per month. If simple interest is paid during study, the EMI drops to approximately ₹52,800 per month.
Is there an income tax deduction on education loan interest?↓
Yes. Under Section 80E of the Indian Income-tax Act, the entire amount of interest paid on an education loan taken for higher studies is deductible from taxable income for up to 8 consecutive assessment years, with no upper monetary cap.
Can the bank education loan cover student living expenses and flights?↓
Yes. Most banks permit inclusion of hostel accommodation, food mess charges, computer/laptop purchases, travel airfare to Vietnam, and medical insurance within the approved loan sanction amount.
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