Here are the Best Education Loans for MBBS Students!

Is wearing a white coat and saving lives your dream? Finding difficulty in managing the MBBS fees? Many times students have the right skills to pursue their dream careers but managing the college fees and other educational expenses pull them down. Why not take an education loan and go ahead with making your dream career a reality? A majority of banks in the country have now started to offer exclusive education loans through which candidates can freely take part in any course of their choice like MBBS, MD and other medical courses. For all those who are looking out for options related to education loan for MBBS, read through the blog as it aims to guide you about the same.

Top Five Banks Providing Education Loan for Medical Students

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.

HDFC Bank Education Loan

The famous HDFC bank offers a loan of up to INR 10 lakh for the students you have successfully secured a seat in MBBS course. To help more and more students with their dream of becoming a doctor, HDFC 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. 

State Bank of India Education Loan 

One of the most popular banks of the nation, SBI, offers loan variants for the students willing to pursue MBBS or MD. The first education loan for MBBS is named as student loan while the other is known as scholar loan. The maximum amount of INR 10 lakh can be availed through this education loan and for alone equivalent or less than INR 7.5 lakh, 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 a loan up to INR 30 lakh. In this scheme, no processing fee will be charged from the candidates. 

Bank of Baroda Study Loan

The education loan for MBBS at the Bank of Baroda is named as Vidya Lakshmi. 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 fee, cost of books and equipment, examination fee, caution deposit, etc. can be covered under this loan. Owing to the hardships that girl students face in securing admissions in higher studies, the bank offers relaxation of 0.5% in its interest rate only to the female candidates. Apart from this, 1% concession in the interest rate will be offered to the students who secure seats in leading Institutions like AIIMS and AFMC.

Must Read: Loans to Study Abroad

Bank of India Education Loan 

The students who have secured a seat in MBBS course either through merit-based selection for entrance exams, can ok to avail this 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 10 lakh that 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. 

IDBI Bank Loan

The students who have managed to secure loans under the management quota can avail the IDBI education loan provided that they have decent marks above the cut-off levels. The maximum amount for the loan offered by IDBI is INR 10 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 loan amount UP to INR 30 Lakh or the 95% of the tuition fee will be covered. Tuition fees, charges for books, laboratory charges and other likely expenses will be covered. Students who have managed to secure admission in leading universities of India and female candidates can avail relaxation in the interest rate of the loan.

Eligibility for Education Loans in India

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%

How to Apply for Education Loans in India?

Both online and offline methods are available in India for applying for student loans.

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.

Documents Required for Education Loans in India

Education loans are sanctioned to a candidate only after the submission of a long list of documents. Consequently, it is extremely important for candidates 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 be needing 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 be needing 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 fees 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 

Latest Update – NEET Not Necessary to Study MBBS Abroad, MCI Orders


Can a MBBS student get education loan?

Yes, a MBBS student is eligible for education loan in India.

Can I get education loan for MBBS in private college?

Yes, if you have a decent NEET score and a good profile then you can get an education loan.

Is original documents required for 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.

Is education loan free of interest?

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.

Thus, we hope that through this blog on education loans for MBBS, we have helped you in getting familiar with the bunch of advantageous loans. To know about the best scholarship as per your course, get in touch with our Leverage Edu experts and they will help you with the same. Book your free e-meeting today!

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