Top Five Banks Providing Education Loan for Medical Students

Details of Top 5 Banks Offering Education Loans in India

Here are the details of education loan schemes from the top five banks in India:

Axis Bank Education Loan 

1. Maximum Loan Amount: Rs.50 lakh 
2. Maximum Loan Tenure: 15 years 
3. Prepayment charges: Nil 
4. For working professionals: Unsecured loans of up to Rs.20 lakh with a tenure of 10 years 
5. Balance transfer education loans available to switch over from other lenders for a lower EMI 
6. Obtain sanction letter before admission based on the individual profile

Bank of Baroda Education Loan 

1. Maximum Loan Amount: Rs.1.5 crore 
2. Maximum Loan Tenure: 15 Years 
3. Margin: Nil Up to Rs.4 lakh 
4. Moratorium period: One year + course duration 
5. Concessional interest rates of 0.50% for female students 

Canara Bank Education Loan 

1. Maximum Loan Amount: Need-based 
2. Maximum Loan Tenure: 15 years 
3. Moratorium: One year + course duration 
4. Margin: Nil up to Rs.4 lakh 
5. Security: Nil for loan amount of up to Rs.7.5 lakh 
6. Concessional interest rates of 0.50% for female students 

Federal Bank Education Loan 

1. Maximum Loan Amount: Rs.20 lakh 
2. Security: None required 
3. Maximum Loan Tenure: 15 years 
4. Subsidy is offered to eligible students 
5. Possible reimbursements for expenses incurred during the ongoing academic year 

  HDFC Bank Education Loan 

1. Maximum Loan Amount: 
2. Maximum Loan Tenure: 15 years 
3. Collateral: None for up to Rs.7.5 lakh 
4. Prepayment charges: Nil 

Eligibility for Education Loans in India

Given below are the eligibility criteria that are common for educational loans from different banks:

1. Indian citizenship
2. Secured admission through an entrance test or a merit-based selection process after 10+2
3. Secured a minimum of 50% marks during the Higher Secondary Certificate (HSC) or graduation level

Documents Required for Education Loans in India

Given below are the common documents required for education loans in India which may vary from bank to bank. Some banks require a certain set of documents at specific stages of the admission process if the loan is being disbursed in tranches.

General Documents Required for Education Loan

1. KYC documents
2. Mark sheets for the S.S.L.C., H.S.C, and degree-level courses
3. Bank statements or passbook of the last 6 months
4. Copy of admission letter from the Institute
5. Schedule of fees
6. Guarantor Form (optional)

Documents to Be Submitted for the First Disbursement

1. Receipt of margin paid to the educational institution with bank statements that reflect the transaction
2. Loan agreement signed by the applicant and the co-applicants
3. Documents for collateral security (if applicable)
4. Sanction letter signed by the applicant and the co-applicants
5. Demand letter from the educational institution
6. Disbursement request form signed by the applicant and the co-applicants
7. Form A2 signed by the applicant or co-applicants in case of educational institutions abroad

Documents Required for Later Disbursements

1. Either one of the following: Marksheets, exam progress report, bona fide certificate
2. Receipt of margin paid to the educational institution with bank statements that reflect the transaction
3. Demand letter from the educational institution
4. Disbursement request form signed by the applicant and the co-applicants
5. Form A2 signed by applicant or co-applicants in case of educational institutions abroad

Overview of Education Loan for MBBS in India 

Here is the detailed overview of the education loan offered for pursuing MBBS in India:

Limit of Loan Amount:

1. Up to Rs.40 lakh unsecured  
2. Up to Rs.2 crores secured 

1. Expenses covered by the loan: 

1. Academic: 

1. Examination, Library, or Laboratory fees 
2. Tuition and Fees payable to the institute 
3. Living expenses including hostel fees 
4. Purchase of books, Equipment, or Uniforms 

Additional: 

1. Overseas insurance 
2. Travel expenses 
3. Purchase of computers or laptops 

1. Cost of health insurance 
2. Moratorium Period: Duration of the course plus 12 months

Interest Rate:

1. Collateralized: Starts from 8.55% approximately Non- Collateralized: Starts from 9.55% approximately 

1. Repayment Duration: 15 years including the moratorium period 

1. Co-applicant: Parents, spouse, siblings, and parent-in-law 

Value of Collateral:

1. Liquid security: 1.1 times the requested loan amount 
2. Immovable property: 1.25 times the requested loan amount 

Overview of Education Loan for MBBS Abroad 

Here is the detailed overview of the education loan offered for pursuing MBBS abroad: 

1. Limit of loan amount: 

1. Up to Rs.75 lakh without collateral   
2. Up to Rs.1.5 crores with collateral 

1. Expenses covered by the loan: 

1. Academic: 

1. Course tuition fee 
2. Cost of books, uniforms, and equipment 
3. Examinations fees 
4. Library and laboratory charges 

1. Living expenses including the accommodation fee 

1. Additional: 

1. Cost of laptop or computer 
2. Travel expenses 
3. Cost of medical insurance premium 
4. Premium of overseas Insurance 

1. Moratorium Period: Total duration of the course plus one year 
2. Interest rate: 

1. Collateralized: Starts from 8.55% approximately Non- Collateralized: Starts from 9.55% approximately 

1. Repayment Duration: Moratorium period of 24 months 
2. Co-applicant: Parents, spouse, siblings, and parents-in-law 
3. Repayment Policies:  

1. If the university is included in the prime list, then payment of interest is optional 
2. If the university is not on the prime list, then simple interest will have to be paid 

Education Loan for MBBS Without Collateral 

The following are the details of education loan for MBBS without collateral: 

1. Limit of loan: up to Rs.45 lakh 
2. Expenses covered: 

1. Cost of living 
2. Cost of books 

1. Uniforms 
2. Laboratory 
3. Tuition Fees 
4. Accommodation charges 
5. Library fee 

1. Repayment Duration: Up to 15 years including the moratorium period 
2. Moratorium Period: Total duration of the course plus six months or one year   
3. Repayment Policies: During the moratorium period, the borrower must pay the Simple or partial simple interest 
4. Interest Rate: Starting from 9.55% 
5. Top banks offering this type of loan in India: 

1. ICICI Bank 
2. Axis Bank 
3. IDFC Bank 
4. HDFC Credila  
5. EliteScholars 
6. Incred 
7. Avanse 
8. Auxilo 

1. Documents required are: 

1. Some of the basic documents are: 

1. The education loan form provided by the lender 
2. Bank account statement of last six months with the sign of co-signer 
3. One year of salary credit of the co-borrower is salaried 
4. One year of business transactions, self-attested documents, and liability and personal asset statement of self-employed co-borrower 
5. Identification proof such as PAN card and passport 
6. Residential proof (any of the following): 

1. Aadhar Card  
2. Voter ID 
3. Passport of the applicant  
4. Electricity bill 
5. Telephone bill  
6. Ration card 
7. Bank account statement 

Note: Provide two different address proof if the current and permanent addresses are different. 

1. Academic document of applicant: 

1. Print out of university ranking form 
2. Scorecard of IELTS, GMAT, or GRE 
3. Marksheets and certifications received in 10th, 12th, and degree 
4. Fee structure of the course 
5. Proof of enrollment into the institution or university 

1. Income document of financial co-applicant: 

1. Salaried: 

1. Previous two years’ ITR 
2. Salary slips of last three months 
3. Previous two years’ Form 16 
4. ID card of the employer 

1. Self-employed: 

1. Last three years’ profit and loss account and balance sheet 
2. Address proof of the business 
3. Previous three years’ ITR 

1. Other documents: 

1. Letter that confirms that the extra amount would be covered by the co-applicant, in case not covered by the education loan. 

1. Additional documents: 
2. Advance transaction receipts 
3. Invoice for expenses such as travel and a laptop 
4. Previous year loan statement if applicable 
5. A letter in case the co-applicant does not have the income tax return 
6. To explain any gaps in the loan application, provide a letter written on Rs. 100 stamp paper 

Education Loan for MBBS with Collateral 

The following are the details of education loan for MBBS with collateral: 

1. Limit of loan: up to Rs.2 crore 
2. Expenses covered: 

1. Tuition Fees 
2. Accommodation charges 
3. Cost of living 
4. Cost of books 
5. Uniforms 
6. Laboratory 
7. Library fee 

1. Moratorium Period: Total duration of the course plus six months   
2. Repayment Policies: Interest payment is not mandatory during the moratorium period 
3. Repayment Duration: Up to 15 years 
4. Interest Rate: 8.55% (approximately) 
5. Value of Collateral for Collateralized Loan: 

1. Immovable property: 1.25 times the loan amount   
2. Liquid security: 1.1 times the loan amount 

1. Top banks offering this type of loan in India: 

1. State Bank of India  
2. Axis Bank 
3. ICICI Bank 

1. Bank of Baroda  
2. IDFC Bank  
3. HDFC Credila  
4. Karur Vysya Bank 
5. Avanse  
6. Auxilo 
7. Incred  

1. Documents required are: 

1. Gift Deed, Will, or Registered Sale Agreement 
2. Property Title deed 
3. The current electricity bill and newest property tax bill with the same address   
4. Link documents for 30 years or Past chain of sale deed establishing title or EC is required 
5. Previous sale deed can also be provided if you own a property for more than 30 years 
6. The original receipt of registration 
7. A letter of allotment by the Municipal Corporation or Authorized Govt. Authorities like MHADA, CIDCO, HUDA, DDA, JDA, GIDC, etc., if applicable 

Tuition Fees of MBBS in India 

The following is the list of tuition fees in private and public medical colleges in India: 

1. Jawaharlal Nehru Medical College: Rs. 15.24 lakh 
2. Smt B. K. Shah Medical Institute and Research Centre: Rs.15.95 lakh 
3. Sri Devaraj Urs Academy of Higher Education and Research: Rs.14.50 lakh 

1. K S Hegde Medical Academy: Rs.14.35 lakh 
2. Kasturba Medical College: Rs.13.10 lakh 
3. SRM Medical College Hospital and Research Centre, Chennai: Rs.22.50 lakh 
4. Hamdard Institute of Medical Sciences and Research: Rs.12 lakh 
5. JSS Medical College and Hospital: Rs. 1,471,750 
6. M.M. Institute of Medical Sciences and Research: Rs.15 lakh 

Scholarship to Study MBBS 

Various organisation including both government and private offers scholarships that covers expenses related to tuition fee, living cost and other associated expenses. These organisations offer scholarships based on financial requirements of the candidate, academic merit, or both.  

The following is the list of scholarships awarded based on specific condition, such as ethnicity, nationality, or study area: 

1. Drs Man & Kang Wong Memorial Prize, King's College London 
2. Dr. Donald Dean Medical Bursary 
3. QMUL Malta/QMUL VGH Malta, Medicine Scholarships, 2017 
4. The John Abernethy (Barts) Scholarships 2022 
5. KCL Kenshole Family Scholarship 2022 
6. Ambedkar Overseas Vidya Nidhi Scholarships for SC students 2023 
7. Hull York Medical School Bursary 2022 
8. Foundation For Excellence Scholarships 2022 

How to Apply for Education Loans in India

You can apply for a student loan in India through the online and offline method as given below:

Online Application Method

Step 1: Go to the bank's official website and apply for an educational loan there.

Step 2: Go to the educational loan section and fill out the online form with the necessary details.

Step 3: Following receipt of your application, a bank representative will contact you to finish the application process.

Step 4: You may be required to provide supporting documentation either online or in person at your local branch.

Offline Application Method

You can go to your nearest bank and fill out an application to apply for an educational loan in person. Obtain the application form, fill it out with all necessary information, and send it with the necessary documents. After your application has been processed, the bank will contact you to finalise the process.

Problems Faced While Applying for Education Loan for MBBS 

The following are some of the problems faced by the applicants of education loan for pursing MBBS: 

1. Lack of information about the loan options available, process of application, and the requirements for the loan 
2. High interest rate making it difficult for the loan applicants to repay the loan 
3. It becomes difficult to secure the loan as students may not have good credit history 
4. Entire loan amount cannot cover the entire expenses related to the course of MBBS which may sometime make the course unaffordable 

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