Education loans for MBBS can be taken from any public or private sector banks in India. You can apply for an education loan through the Vidya Lakshmi portal. A lot of banks offer special loans for MBBS and other medical courses at attractive interest rates, flexible repayment options, and easy application processes. So, if you are stuck with managing huge MBBS fees and other educational expenses, why not take an education loan? Let’s check some major features of the education loan for MBBS.
Table of contents
Education Loans for MBBS Students
If you are wondering ‘Can I get an education loan for MBBS?’. The answer is Yes. You can get education loan for your MBBS studies. Several banks and financial institutions offer specialized education loans under dedicated schemes for medical aspirants, especially Union Bank of India’s UNION MEDICOS scheme and ICICI Bank education loan for MBBS scheme. They provide loans of up to INR 2 crores that cover tuition fees, hostel expenses, and other related costs.
- Most MBBS education loans offer a moratorium period, allowing you to start repaying after completing your course and securing a job.
- Banks and NBFCs provide attractive interest rates, often with concessional rates for women students.
- Loans of up to several crores are available to cover the comprehensive costs of medical education.
- While some lenders require collateral, many offer collateral-free loans for specific loan amounts.
- Online applications and minimal documentation make the process convenient.
Top Banks for MBBS Education Loan
Graduate-level and post-graduate medical education in India can be expensive. In India, loans for medical school have an annual interest rate of 6.50% and a 15-year maximum repayment period. One of the best methods to pay for your further education in the medical sector in India is with an education loan because many banks provide a moratorium period, need little in the way of proof, and have an easy online application procedure.
| Public Sector Banks | Private Sector Banks | NBFCs |
| SBI | HDFC Bank | Auxilo |
| Union Bank of India | ICICI Bank | HDFC Credila |
| Canara Bank | Axis Bank | Avanse |
HDFC Bank
The famous HDFC bank offers education loans to MBBS students based on their needs. To help more and more students with their dream of becoming a doctor, HDFC Bank education loans to study abroad without collateral are offered up to INR 75 lakhs. The bank does not require any collateral for loans up to 7.5 lakh but for the loans above this amount, there are many collateral options like KVP policy, NSC, HDFC fixed deposit, etc.
Students will get 15 years as the maximum period in which they can repay the entire loan amount. The bank also offers special interest rates for a bunch of top-listed academic institutions. Some of the complementary features that you will get from HDFC Bank are flexible repayment options, doorstep service, a wide range of collateral options, etc.
| Particulars | Details |
| Maximum Loan Amount | With Collateral- Need-based financing Without Collateral- Up to INR 45 lakhs |
| Interest Rates | Starting from 9.50% p.a |
| Repayment Period | 14 years including the moratorium period |
| Processing Fees | 1% of the total loan amount or INR 1000 (whichever is higher) |
State Bank of India
One of the most popular banks in the nation, SBI, offers MBBS education loan variants for students willing to pursue MBBS or MD under various loan schemes like the SBI Student Loan Scheme and SBI Ed-vantage Scheme.
SBI education loans for MBBS are provided up to INR 1.5 crores. There is no necessity for collateral security or third-party guarantee. A period of 10 years can be termed as the tenure in which candidates must complete the entire repayment. This loan can be utilised to bear the expenses related to examination fees, laboratory charges, cost of equipment and books, etc.
Candidates must note that only the students who have secured admission in any of the top 105 institutions listed by SBI, can avail of a loan up to INR 1.5 crores. In this scheme, no processing fee will be charged to the candidates.
| Particulars | Details |
| Quantum of Finance | For abroad – Up to INR 1.5 crore |
| Interest Rate | For abroad – 8.8% (Men); 8.3% (Women) |
| Processing Fees | INR 10,000 + taxes on loans above 20 lakhs |
| Loan Tenure | 15 years |
Bank of Baroda
The education loan for MBBS can be applied through a government portal – Vidya Lakshmi Education Loan Bank of Baroda aside from visiting the bank branch or applying online. Bank of Baroda’s interest rates are also low, affordable and competitive which makes it a great choice to secure education loans for MBBS.
It aims to assist the merit students willing to pursue MBBS studies. Only the native residents of India can apply for this loan at the Bank of Baroda. Charges like tuition fees, cost of books and equipment, examination fees, caution deposits, etc. can be covered under this loan.
Owing to the hardships that female students face in securing admission to higher studies, the bank offers a relaxation of 0.5% in its interest rate only to female candidates. Apart from this, a 1% concession in the interest rate will be offered to the students who secure seats in leading Institutions like AIIMS and AFMC.
| Particulars | Details |
| Quantum of Finance | For abroad – Upto INR 80 lakhs |
| Interest Rate | For abroad – 7.75% (Men); 8.25% (Women) |
| Processing Fees | INR 10,000 + GST |
| Loan Tenure | 15 years |
| Moratorium Period | Course period + 6 months |
| Margin Money | Above INR 4 lakhs – 10% |
Also Read: Compare the education loan interest rates of different lenders and avail study abroad education loans at the lowest interest rates in 2024.
Bank of India
The students who have secured a seat in the MBBS course either through merit-based selection for entrance exams, can avail of MBBS student loan for better fluidity of funds. Just as the aforementioned loans, this one also covers all the types of expenses that one may bear during the course of study.
The maximum amount for a loan is INR 150 lakh which can be repaid as per the selected amount of time period. For the loans that are below or equal to INR 4 Lakh, there is no security or margin required from the candidates. Students can apply for a loan by visiting the nearest BOI branch or online and be relaxed as the BOI Education Loan Disbursement Process is hassle-free.
| Particulars | Details |
| Quantum of Finance | For abroad – INR 150 lakhs |
| Interest Rate | Up to 7.5 lakhs- 1 year RBLR + 1.70% Above 7.5 lakhs- 1 year RBLR + 2.50% |
| Processing Fees | For abroad – INR 5000 |
| Loan Tenure | 15 years |
| Moratorium Period | Course Duration |
| Margin Money | 10- 15% |
IDBI Bank
The students who have managed to secure loans under the management quota can avail the IDBI education loan for MBBS provided that they have decent marks above the cut-off levels. The maximum amount for the loan offered by IDBI is up to INR 70 lakh whereas for loans that are up to INR 4 Lakh there is no security or collateral required.
The candidates who have been selected as potential students in paramount institutions can avail of 100% financing to cover tuition fees and other related expenses like charges for books, and laboratory charges. Students who have managed to secure admission to leading universities of India and female candidates can avail of relaxation in the interest rate of the loan. The IDBI education loan processing time takes around 15-20 days after the submission of the form.
| Particulars | Details |
| Quantum of Finance | Up to INR 70 lakhs |
| Interest Rates | Sanction amount up to Rs.10 lakhs: 11.00% (BR+1%) Floating Sanction amount above Rs. 10 lakhs: 12.00% (BR+2%) Floating |
| Repayment Period | 15 years |
| Moratorium Period | Course Duration + 1 year |
| Margin | Up to INR 4 lakhs- NILINR 4 lakhs to INR 7.5 lakhs- 15%Above INR 7.5 lakhs- 20% |
Eligibility for MBBS Education Loans
To be eligible for an MBBS education loan from most banks, you’ll need to be a citizen of India and must have secured admission to a program after completing high school. The usual eligibility requirements for student loans from various banks are shown below:
- Citizenship of India
- Obtained admission upon completion of 10+2 through a merit-based selection procedure or entrance exam
- Attained a Higher Secondary Certificate (HSC) or graduation grade point average of at least 50%
- The loan is specifically for MBBS programs in recognized Indian institutions and universities abroad
- Depending on the loan amount, collateral might be needed
How to Apply for MBBS Education Loans
Both online and offline methods are available in India for applying for student loans. You can follow the steps given below to apply for MBBS education loans with some of the best banks to study abroad.
Online Application Steps
- Apply for an educational loan via the bank’s official website.
- Visit the section for student loans and complete the online form there with the required information.
- After receiving your application, a bank representative will get in touch with you to complete the process.
- It could be necessary for you to present supporting papers in person or online at your neighbourhood branch.
Offline Application Steps
To apply for a student loan in person, visit your nearby bank and complete an application. Obtain the application form, complete it with the required details, and send it along with the required paperwork. The bank will get in touch with you to complete the process after your application has been completed.
Also Read: Check out the FAQs on the Restructuring 2.0 Scheme of RBI that provides benefits to the borrowers affected by the COVID-19 pandemic.
Documents Required for MBBS Education Loans
Education loans are sanctioned to a candidate only after the submission of a long list of documents. Consequently, candidates need to get the list of documents required for an education loan right! Considering the importance of documents required for an education loan, we have compiled all that is necessary to apply for the same, have a look:
You will need the following documents to prove your identity and belonging next to a particular city in the country-
KYC Documents
- PAN card
- Aadhar Card
- Driving License
Address Proof
- Aadhar Card
- Current House lease agreement
- Valid passport
- Valid water/electricity/ LPG bill
- Voter’s ID card
To apply for an education loan, you will need the following education-related documents-
Post-Academic Records
- Class 10th marksheet
- Class 12th marksheet
- 3rd /4th-year marksheet of graduation
- Diploma/ certificate of marks
- Special education certificate
- Certificate of scholarships or awards
Current Education
- Records of fee breakup
- Placement records of university/ college/ institution
- Conditional letter, letter of admission, permanent admission letter as proof of admission
Foreign Education
- CAS letter for UK education applicants
- I-20 form for those who have studied in the USA
- Scorecard of exams like IELTS/ GMAT/ TOEFL/ GRE, etc
- Entry permit
- Exchange visitors form of a particular country or student exchange form
The documents required for an education loan in terms of financial aspects are-
For Self Employed/ Business/ Pensioners
- Proof of turnover ( Services Tax/ GST return statement of business/ Latest Sales Tax)
- Income Tax returns approved as well as verified by a CA at least 24 months
- For Self Employed: Proof of Qualification (Not mandatory for all the banks)
- For Pensioners: Proof of retirement along with pension certificate
For Employed/ Government or Non-government Service/ Salaried
- Form 16 ITR returns for at least 2 years
- Salary slips provided by the employer for the last 2 months
- From current and previous year employer, salary computation statement
General Documents
- Academic fees demand letter
- Bank statement/ Bank passbook copy
Generally, applicants are asked to submit the below-mentioned documents for the collateral category-
Loan Against Deposits
- Original RD/ FD Receipts
- Interest Statement of FD/ RD
Loan Against Immovable Asset (Property/House/ Land)
- Current property tax statement along with maintenance bill/ tax
- Chain of sale deed/ property deed
- NOC from society/ builder
- Allotment letter by Municipal Corporation or any other Government authority
Loan Against Securities/ Shares and Debentures
- PAN card copy
- De-Mat account statement
Also Read: Check out the list of documents required for unsecured education loans to study abroad. Keep them ready for a quicker processing time.
FAQs
Yes, a MBBS student is eligible for education loan in India.
Yes. SBI offers MBBS education loan variants for students willing to pursue MBBS or MD under various loan schemes.SBI education loans for MBBS are provided up to INR 1.5 crores.
Yes, if you have a decent NEET score and a good profile then you can get an education loan.
Certificate of completion for a three- or four-year degree (if applicable) Certificate of graduation, a record of grades, or diploma. Past scholarship and award records, etc. Specialized education, professional training, or a certificate of completion for a course.
No, it is not possible to obtain a bank education loan with a 0% interest rate. To obtain an interest-free education loan, you can, however, apply for a number of scholarships or look into government assistance programmes.
Some of the best banks that provide MBBS education loan to study abroad are SBI, HDFC Bank, Bank of India, Bank of Baroda, and IDBI Bank. They offer 100% financing to cover the tuition fees, accommodation expenses, and other study abroad related expenses.
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.
Follow Us on Social Media
