Education Loan for Studying MBBS in India: Everyone knows how difficult is to get a seat in medical colleges in India or Abroad. Mainly it will be difficult when you don’t have enough amount of funds to study MBBS at the best universities in India.
To overcome this issue, we have come up with the best solution ie., Education Loans for MBBS in India. This study loan can help individuals to finance their education and become the upcoming best doctor in India.
These days education costs became too expensive so individuals who can’t afford the fees for MBBS are advised to benefit from student loans from various banks or financial lenders. This article completely covers the information about Education Loan for Studying MBBS in India and support for choosing the best funding for your higher education.
What Type of Education Loan For MBBS In India Is Suggested?
Overthinking the loan schemes provided by various lenders can lead to missing out on the important things in choosing the study loan for a medical degree. To avoid such mistakes, we have also come up with a recommended type of education loan for MBBS in India.
As we all know that education loans are divided into two types mainly secured and unsecured. Getting an unsecured loan from NBFCs and Private banks has fewer chances. So, we advise students to go with the Secured education loans for MBBS studies in India.
Various Government banks offer secured student loans for MBBS in India. Check out the other modules of this guide and find the best bank to fund your medical studies in India. Do you want to get clarity on other education loan types? Check our guide called What is an education loan?
Why Don’t NBFCs Risk to Grant Unsecured Education Loans for MBBS Students in India?
NBFCs have their reasons for not taking the risk of granting unsecured loans for MBBS students in India. Want to explore what are they? Check below:
- One of the biggest reasons why NBFCs do not provide study loans for Indian Mbbs students is the course duration. MBBS course duration is 5.5 years and then the repayment tenure will be like 7-8 years.
- Lenders feel students who want to study a 2-year course face issues with a lack of funds. So, maximum providers do not offer unsecured education loans for medicine or other lengthy courses.
- Another reason is that NBFCs can help two other postgraduate students rather than one medical student.
Eligibility Requirements for MBBS Admission in India
To get admission to medical universities for MBBS courses, students have to meet the below-mentioned eligibility:
- The age of the students should be between 17 to 25 at the time of admission to MBBS.
- They have to secure a good rank or qualifying mark in the entrance exam ie., NEET.
- The percentage students have to hold in 12th exams is a minimum of 50% in India.
- Also, they should study Physics/Biology/Chemistry as the main subjects in class 12th.
- Overall, 12th-standard universities/institutes have to be affiliated and acknowledged by National Medical Commission (NMC), World Health Organization (WHO), and United Nations Educational, Scientific and Cultural Organization (UNESCO).
List of Documents Required For An Education Loan For MBBS In India
There can be many legal and personal documents of applicants and co-applicants are required to submit for getting a medical education loan in India. These documents can be varied from bank to bank or lender to lender.
So, we have given the commonly used documents listed below. We recommend you gather all the documents prior and check with the lender before submitting:
- KYC documents
- Previous academic marks sheets like S.S.C., H.S.C, and degree-level courses
- Copy of admission letter from the Institute
- Bank statements or passbook for the last 6 months
- Schedule of fees
- Guarantor Form (optional)
- A demand letter from the educational institution
- Receipt of margin paid to the educational institution with bank statements that reflect the transaction
- Documents for collateral security (if applicable)
- Loan agreement signed by the applicant and the co-applicants
- Disbursement request form signed by the applicant and the co-applicants
- Sanction letter signed by the applicant and the co-applicants
Comparison Table of 5 Top Banks That Provide Medical Student Education Loan In 2023
Here is the information about the top 5 medical student education loans in 2023 provided by Indian banks. Know the details like ROI, Maximum Tenure & Loan amount, and Processing fees offered by these top 5 banks from the below table and start planning to choose the best education loan scheme for MBBS studies In India:
Interest Rate:
- Axis Bank: 13.70% p.a. onwards
- Federal Bank: 12.55% p.a. onwards
- Canara Bank: 9.25% p.a. onwards
- Bank of Baroda: 9.15% p.a. onwards
- HDFC Bank: Preferential rates as per the college or the university
Maximum Loan Amount:
- Axis Bank: Rs. 50 lakh
- Federal Bank: Rs. 10 lakh
- Canara Bank: Need-based
- Bank of Baroda: Rs. 1.50 crore
- HDFC Bank: Up to Rs. 1.5 crore
Maximum Tenure:
- Axis Bank: Up to 15 years
- Federal Bank: 15 years
- Canara Bank: 15 years
- Bank of Baroda: 15 years
- HDFC Bank: 15 years
Processing Fees:
- Axis Bank: 2% of the loan amount
- Federal Bank: Nil
- Canara Bank: Refer to the bank’s website
- Bank of Baroda:
- No processing charges up to Rs. 7.50 lakh
- 1% of the loan amount up to Rs. 10,000
- HDFC Bank: As per the criteria of the bank
Step-by-Step Procedure for Taking an Education Loan to Study for an MBBS in India
The process to take an education loan for studying an MBBS course in India can differ as per the financial provider or banks. Commonly it includes the following steps:
- First, check the eligibility conditions to get a fund to study medical courses.
- If yes, do check the documents needed and gather them in one place.
- Next, apply for the loan through online or in person by visiting a bank or lender’s place.
- While applying, fill out the form and submit the required documents.
- Once you submit the application, the lender will start processing your loan by checking credit, document verification, and the individual’s ability to repay the loan.
- If your loan got sanctioned, then chosen bank or financial institution will start disbursement of the loan.
- Directly, the loan amount got credited to your account and helps you pay the tuition fees, accommodation, and other expenses.
- The final step is to repay the loan to the bank as per the loan scheme and tenure.
The above application and loan sanction process may vary. So, carefully research the process of other loan schemes and apply the best one to complete your MBBS studies
FAQs on Education Loans for Studying MBBS in India
- Should I take an education loan for MBBS in India?
Students who belong to low or middle-income families can afford to study Medicine in India as it is quite an expensive course in India. So, they can take financial help by applying for education loans from various lenders and completing MBBS easily in India.
- How much education loan can I get for MBBS in India without collateral?
If you opt for an unsecured education loan for MBBS studies in India, you can get a loan amount upto 40 lacs as funding. Even if there is no fixed education loan you can avail for Medicine degree as it varies from lender to lender and scheme to scheme.
- Which bank is best for an MBBS Education loan?
Various top banks provide unsecured and secured student loans for MBBS courses in India. Here are the best 5 banks:
- Axis Bank
- HDFC Credila
- ICICI Bank
- IDFC Bank
- Bank of Baroda
- Can I get 50 lakhs education loan with collateral?
Yes, you can get 50 lakhs education loan with collateral and it can also go up to 1-2 crores as per the institute and degree course.
Final Words
If you find this guide on Education Loan for Studying MBBS in India worthy while researching period then keep sharing it with others via social media platforms and educate everyone about the same.
Do you want to gather more information on education loans for Medicine degrees? Refer to this Education Loan for MBBS Abroad article. Moreover, we have plenty of student education loan guides with us to fulfill every student’s wish so press the available link and find the appropriate information on our website @LearnCBSE.in