MBBS Abroad: Financial Planning Guide
Forex & LRS rules, sending fees abroad, how much to borrow, realistic loan repayment, insurance and the hidden costs — planned honestly.
Sending money abroad: LRS & TCS
The LRS limit
Under the RBI Liberalised Remittance Scheme, each resident can remit up to USD 250,000 per financial year for education (FY 2026–27, unchanged). Both parents can remit separately — so a family can send up to ~USD 500,000/year, covering tuition + living.
TCS on education remittances
2% TCS on education remittances above ₹10 lakh/year — and 0% if it's funded by an education loan (Section 80E) or stays under ₹10 lakh. TCS isn't an extra tax; it's adjusted against / refundable on your income tax.
Tip: compare exchange rate + fees across your bank, authorised forex dealers and forex cards — banks are often the costliest. On a ₹30 lakh course, even a 1–2% rate difference is ₹30,000–60,000 saved.
How much to borrow — and repaying it
- Borrow only the gap between total cost and your own funds. Most MBBS-abroad loans are ₹15–40 lakh.
- Moratorium: EMIs typically start after course duration + 6–12 months — but interest usually accrues during study, so the longer you wait, the more you repay.
- Repayment reality: a junior resident in India earns roughly ₹40,000–80,000/month after FMGE + internship. A ₹25–30 lakh loan means several years of disciplined EMIs — much easier after you finish PG.
- Section 80E: interest on an education loan is tax-deductible (no upper limit) for up to 8 years.
Insurance — don't skip it
Medical / health
Usually mandatory for your student visa. Covers illness, hospitalisation and accidents in the host country.
Travel
Covers trip delays, lost baggage and emergencies in transit, including initial arrival.
Repatriation
Covers emergency medical evacuation / repatriation to India — cheap to add, vital in a crisis.
Compare the university's bundled insurance against an Indian student-travel policy — sometimes one is far cheaper for the same cover.
Budget the full picture, not just tuition
Plan for tuition + hostel + living + one-time costs (visa, flights, deposit, insurance, apostille) + a 10–15% buffer for currency swings. And don't count on "earning your fees" abroad — see our honest guide to part-time work. Get the full number with our Total Cost Calculator.
Which way to send money is cheapest?
The "exchange rate" isn't the whole story — banks add a markup on top of fees. On a multi-lakh transfer, the method you choose can save tens of thousands of rupees a year.
| Method | Cost | Best for |
|---|---|---|
| Bank SWIFT wire | Fee + exchange-rate markup (often costliest) | Convenience if your bank gives a good rate |
| Authorised forex dealer / remittance service | Usually the best rate + lower fees | Large tuition transfers — compare 2–3 providers |
| Forex / multi-currency card | Load fee + ATM/usage charges | Day-to-day living expenses abroad |
| Cash | Limited by customs; risky | Small initial buffer only |
Education loans: secured vs unsecured
Secured (with collateral)
Backed by property/FD/securities. Lower interest (typically ~9–11%), higher loan amounts, longer tenure. Best if your family has collateral — public-sector banks are usually cheapest.
Unsecured (no collateral)
No asset pledged. Higher interest (~11–14%), capped amounts, often from private banks/NBFCs. Faster but costlier — borrow the minimum you need.
Compare offers on the government Vidya Lakshmi portal and across public banks, private banks and NBFCs. A good loan covers tuition + living + travel + insurance. Check our education-loans page for specific bank schemes.
A worked repayment example
Say you take a ₹30 lakh loan at ~11%, with a moratorium of 6 years (course) + 1 year, repaid over 10 years:
- Approx EMI once repayment starts: ~₹40,000–42,000/month
- A junior resident earns ~₹40,000–80,000/month — so early on the EMI is a large share of income.
- Interest accrues during the moratorium, so the total repaid is well above ₹30 lakh — paying some interest during study reduces the burden.
- Repayment gets much easier after PG (MD/MS), when earnings rise sharply.
Sample 6-year budget (illustrative)
A typical affordable CIS/Asian destination. Your real numbers depend on country and university — use the calculator for an exact figure.
| Tuition (6 years) | ₹18–30 lakh |
| Living (₹20k/mo × ~60 months abroad) | ₹10–14 lakh |
| One-time (visa, flights, deposits, insurance, apostille) | ₹2–4 lakh |
| Realistic all-in total | ≈ ₹30–48 lakh |
Still cheaper than most Indian private MBBS seats (often ₹60 lakh–1 crore+) — which is the core financial case for MBBS abroad.
Frequently Asked Questions
How do I send money abroad for MBBS fees from India?
Under the RBI Liberalised Remittance Scheme (LRS), each resident individual can remit up to USD 250,000 per financial year for education — so both parents can each remit, covering tuition and living costs. Send via your bank (SWIFT wire), an authorised forex dealer, or a forex card; compare exchange rate + fees, as banks are often costlier than specialist remittance providers.
Is there TCS (tax) on sending money for education abroad?
For education remittances, TCS is 2% on amounts above ₹10 lakh in a financial year — and 0% if the remittance is funded by an education loan from a recognised institution (Section 80E), or if it stays under ₹10 lakh/year. TCS is not an extra tax; it is adjusted against your income tax / refundable when you file returns.
How much education loan should I take for MBBS abroad?
Borrow only the gap between your total cost (tuition + living + one-time expenses) and your own funds — don't over-borrow. Most MBBS-abroad loans run ₹15–40 lakh. Use our loan-EMI calculator to see the realistic EMI, and remember the loan starts accruing interest during the course (with a moratorium of course duration + 6–12 months before EMIs begin).
Can I repay my MBBS loan on a doctor's starting salary in India?
Yes, but plan realistically. A junior resident in India typically earns roughly ₹40,000–80,000/month (govt vs private, city-dependent) right after FMGE + internship. A ₹25–30 lakh loan means several years of disciplined EMIs. Repayment gets much easier after PG (MD/MS), so factor your PG timeline in.
Do I need insurance to study MBBS abroad?
Yes — most host countries require valid medical/health insurance for your student visa, and you should also carry travel and repatriation cover. Never skip it: an uninsured medical emergency abroad can cost lakhs. Confirm whether the university's package or a separate Indian student-travel policy is cheaper.
What hidden costs should I budget for?
Beyond tuition: hostel/accommodation, food, local transport, visa & immigration fees, one-time flights, security deposits, insurance, document apostille/translation, books/equipment, a SIM/internet plan, and a currency-fluctuation buffer. Build a 10–15% contingency into your plan.
Get a clear, honest cost plan
Tuition, living, loan and repayment — mapped to your budget, with no hidden surprises.