Is a 56Lakh Loan for M.B.B.S. from a Private Medical College in India Worth It?
Choosing to pursue a medical degree at a private medical college in India can be a significant financial decision. If you are considering a loan of 56 lakh (approximately $800,000) for an M.B.B.S. (Bachelor of Medicine, Bachelor of Surgery) program, it is essential to weigh the pros and cons to determine if this investment is worthwhile. This article discusses the potential return on investment and the loan repayment timeline.
Understanding the Cost and Return on Investment
Typically, the M.B.B.S. course can be availed for approximately 10 lakh (about $145,000) with some entrance rank, depending on the college's reputation. Graduates have the potential to earn anywhere from 30,000 to 3 lakh (up to $43,000) per month. However, a loan of 56 lakh (around $800,000) would have an interest burden that needs to be considered.
Timeline of Repayment and Interest Accumulation
A common repayment period for such a loan is 12 years. The EMI (Equated Monthly Installment) for a 56 lakh loan over 12 years would be around 75,000 per month. This EMI, combined with the interest accumulated, would significantly impact your financial situation. Assuming an interest of approximately 12%, the total interest paid over 12 years could be around 56 lakh, bringing the total repayment to 1.12 crore (approximately $1.6 million).
Earning Potential and Other Factors
Post-M.B.B.S., doctors, especially those working in cities, can earn a monthly salary of 1 lakh (approximately $14,500) or even more, especially if they secure a government seat for further specialization. However, earning 30,000 to 3 lakh per month during the initial years of practice is more realistic. With such a large loan, you might have to compromise on your lifestyle or pursue additional income sources to manage the debt.
Conditions for Pursuing Private Medical College
There are certain conditions under which it might be advisable to consider private medical colleges. These include:
Limited Government Seats
If you are unable to secure a government seat in any part of the country and have already dropped a year, then pursuing a private medical college might be worth considering. Additionally, enrolling in a reputable private medical college could be beneficial.
Is the High Cost Justified?
Many argue that the cost of pursuing a private M.B.B.S. degree, especially with a large loan, is not justified. The daily struggle to pay back a large debt and the often restrictive salary of a plain M.B.B.S. doctor can make it challenging to manage both personal and professional life.
According to a response to the question on Quora, the salary of an M.B.B.S. doctor is generally insufficient to cover such a large debt load. The following statement provides additional insights:
It is not prudent to take a loan of such magnitude for a private medical college. You will bear the responsibility of repaying the loan with interest, and it is unlikely that your earnings will be sufficient to cover the debt burden comfortably.
Expert Advice
An expert in the field suggests that taking such a significant amount of debt is risky and not recommended, especially for middle-class families. The following advice highlights the risks associated with large medical school loans:
Never take such heavy loans. It is highly unlikely that you will be able to earn enough to cover the debt, especially with the current economic conditions in India. Consider alternative paths or smaller loan amounts to minimize financial strain.
In conclusion, while a private medical college education in India can offer valuable experience and networking opportunities, the financial burden of a large loan must be carefully considered. It is essential to evaluate your current financial situation, potential earnings, and the likelihood of comfortably repaying the loan before making a decision.
If you are struggling with the decision, seeking professional financial advice would be highly beneficial.