Becoming a doctor and helping people is one of the most sought-after career paths for students after Class 12. Every year, lakhs of students take the NEET exam conducted by the NTA to achieve this dream. However, pursuing an MBBS degree, especially from a private college, can seem out of reach for students from low-income families due to the high course fees, which typically range between ₹10 to ₹25 lakh per year. Fortunately, there is a practical solution to this financial challenge, which is a student loan for MBBS.
In India, leading private and government banks, along with central & state governments, offer education loans specifically designed for MBBS students. A major advantage of this education loan for MBBS is that repayment usually begins only after the candidate starts earning or six months after the course ends, depending on the bank’s policy.
These loans generally cover essential expenses such as tuition fees, accommodation, transportation, and books. If you’re planning to pursue an MBBS degree and need financial assistance, you can learn about various education loan for MBBS in India here. Read on to learn about different loans, their eligibility criteria, interest rates, and other details.
Eligibility Criteria for Student Loan for MBBS
Medical students must meet the eligibility criteria of banks and other financial institutions to get an education loan. Below, we have added the important eligibility criteria that applicants are usually required to meet to get an education loan for MBBS.
- The applicant must be an Indian citizen or a Non-Resident Indian (NRI).
- Admission to an MBBS program must be secured in a recognized medical institution through an entrance exam or merit-based selection.
- The institution offering the MBBS course must be recognised by an appropriate body like the National Medical Commission (NMC).
- The applicant must be between 18-35 years of age to apply for the student loan for MBBS.
- A parent, guardian, or spouse is required as a co-borrower for the loan.
- Proof of family income may be required to assess eligibility.
- The applicant must demonstrate satisfactory academic performance to qualify for an educational loan.
- Banks offer small loans collateral-free, but typically, loans worth ₹7.5 lakhs require applicants to submit collateral.
Top Five Student Loans for MBBS By Banks
Medical students can pick the best study loan for MBBS from the list below.
#1 ICICI Bank Education Loan
Students looking for loans to pursue MBBS can apply for the ICICI Bank education loan. The bank is offering up to ₹1 CR loan for students studying in India and up to ₹3 CR for students studying abroad. The ICICI education loan for MBBS interest rate depends on the repo rate set by the RBI at the time of application plus the spread value, which changes depending on the risk factor.
- Loan Amount
- Get up to ₹1 CR for courses in India
- Up to ₹3 CR for courses abroad
- Loan Processing Fees (Non-refundable)
- 2% of the loan amount
- Interest Rate
- Current repo rate by RBI + 3.75% (Spread), onwards
- Loan Tenure
- Up to 10 or 12 years
- Maximum Unsecured Loan Amount
- Students can get up to ₹1 CR as an education loan for MBBS without collateral.
#2 HDFC Bank Education Loan
HDFC Bank offers an educational loan to fund your MBBS studies without worrying about money. By submitting collateral, you can avail up to ₹1.5 CR education loan for MBBS; without collateral, the amount you can get is up to ₹50 lakhs. The interest rates for the study loan for MBBS in a private college change depending on which institution you get admission to. For premier institutions, the interest rate of HDFC Bank education loan is lower compared to other institutions.
- Loan Amount
- Get up to ₹1.5 CR as a student loan for MBBS with collateral
- Loan Processing Fees (Non-refundable)
- No charges
- Interest Rate
- Current repo rate by RBI + Spread
- Loan Tenure
- Up to 15 years
- Maximum Unsecured Loan Amount
- Get up to ₹50 lakhs as a loan for selected institutes without collateral
#3 SBI Education Loan
Students looking for an education loan from a government bank can choose the SBI education loan for MBBS students. There is no upper limit for the loan needed by students studying MBBS in the top 100 NIRF colleges. SBI education loan of up to ₹ 7.5 lakhs can be availed without collateral.
- Loan Amount
- Get ₹75 lakhs or more as a student loan for MBBS if studying in one of the top 100 NIRF colleges
- For other colleges, get up to ₹50 lakhs
- Loan Processing Fees (Non-refundable)
- Up to ₹20 lakhs: No fees
- Loans above ₹20 lakhs: ₹10,000 + taxes
- Interest Rate
- Current repo rate by RBI + Spread
- Loan Tenure
- Up to 15 years (+12 months of *repayment holiday)
*Borrowers can take a break from repaying the loan due to various reasons
- Collateral Information
- Loans up to ₹7.5 lakhs: No collateral needed
- Loans above ₹7.5 lakhs: A co-borrower and collateral are needed
#4 Bank of Baroda Education Loan
The student loan for MBBS in India by the Bank of Baroda is called the Baroda Gyan Education Loan. Applicants can get up to ₹1.25 CR as a loan under this scheme, for which there is a 1% processing fee up to ₹ 10,000 if the loan amount is more than ₹7.5 lakhs. Remember that to get the Bank of Baroda education loan of ₹7.5 lakhs or more, you need to submit collateral of equal value. While for loans above ₹80 lakhs, you must submit collateral worth 1.25x.
- Loan Amount
- Get up to ₹1.25 CR as a loan
- Loan Processing Fees (Non-refundable)
- Loans up to ₹7.5 lakhs: No charge
- Loans above ₹7.5 lakhs: 1% fee up to ₹10,000
- Interest Rate
- Current repo rate by RBI + 2% (for loans up to ₹7.5 lakhs)
- 1.90% (for loans above ₹7.5 lakhs)
- 10.25% (for wards of defence personnel)
- Loan Tenure
- 10 to 15 years repayment with:
- 120 instalments (loans up to ₹7.5 lakhs)
- 180 instalments (loans above ₹7.5 lakhs)
- 10 to 15 years repayment with:
- Collateral Information
- Loans up to ₹7.5 lakhs: Parent co-obligation needed, no collateral
- Loans between ₹7.5 lakhs – ₹80 lakhs: Tangible collateral equal to loan amount + *future income assignment
- Loans above ₹80 lakhs: Collateral worth 1.25x of total loan amount + future income assignment
*If the borrower defaults, the lender can intercept a portion of their salary to repay the loan
#5 IDFC FIRST Bank Education Loan
Students who need an education loan for MBBS in government college or private college can consider claiming the IDFC FIRST Bank education loan, which grants up to ₹1.5 CR as a loan.
- Loan Amount
- Get up to ₹1.5 CR as an education loan
- Loan Processing Fees (Non-refundable)
- Loans up to ₹7.5 lakhs: No charges
- Loans above ₹7.5 lakhs: Up to 1.5% of the total loan amount
- Interest Rate
- Interest starts from 9.5% and can go as high as 12%
- Loan Tenure
- Up to 15 years
- Collateral Information
- No collateral is required for student Loan for MBBS up to ₹75 lakhs
Student Loan for MBBS By Central Government
The government of India is committed to providing affordable loans for education, which is why it has launched different loan programs for students pursuing job-oriented higher education, such as MBBS. Find the top student loan for MBBS by the Indian government below.
Pradhan Mantri Vidyalaxmi Scheme
The Pradhan Mantri Vidyalaxmi Scheme (PM-Vidyalaxmi) is an education loan by the government that provides financial assistance to meritorious students. The loans are offered to students who want to pursue higher education. Thus, student loan for MBBS can be granted under this scheme. The maximum amount provided to students is ₹10 lakhs, of which the government of India guarantees 75% of the loan amount up to ₹7.5 lakhs. Listed below are the benefits of the PM-Vidyalaxmi Scheme:
- Provides collateral-free, guarantor-free education loans for students.
- Ensures 75% credit guarantee by the Government of India for loans up to ₹7.5 lakhs.
- Offers a 3% interest subsidy on loans up to ₹10 lakhs for students with annual family income of up to ₹8 lakhs.
- Extends full interest subsidy for students with annual family incomes up to ₹4.5 lakhs.
- Loans are offered to meritorious students who gain admission into the top 860 Quality Higher Educational Institutions (QHEIs).
- The loan application process is fully digitalised and transparent.
- Applicable to all Scheduled Banks, Regional Rural Banks (RRBs), and Cooperative Banks.
Click here to learn more about the Pradhan Mantri Vidyalaxmi Scheme.
IBA Model Education Loan Scheme
The Model Educational Loan Scheme by the Indian Banks’ Association (IBA) aims to support meritorious students in pursuing higher education in India or abroad. They offer affordable loans with no upper limit, and the loan is based on the course amount and institution requirements. Loans up to ₹7.5 lakhs require no collateral or third-party guarantee. The loan covers the educational needs of students pursuing technical, professional, and job-oriented courses.
Key points to know about the Model Education Loan Scheme by IBA for students looking for an education loan for MBBS:
- IBA offers this loan to Indian nationals and non-resident Indians pursuing higher education in India or abroad.
- The loan covers tuition fees, hostel expenses, books, travel, insurance, and other academic-related costs.
- There is no upper limit on the loan, and for loans up to ₹7.5 lakhs, MBBS students do not need to submit any collateral or sign a third-party guarantee.
- The loan repayment period is up to 15 years, with a moratorium covering the course duration plus one year.
- The IBA-associated bank will decide the interest rate at which the application is made. Simple interest will be charged during the study and moratorium periods.
Click here to learn more about the IBA Model Education Loan Scheme.
Student Loan for MBBS By State Governments
The state governments of India also offer various loan and credit card facilities for students pursuing higher education. To avail of these schemes the applicant must have a domicile certificate of that particular state. Below, we have listed some of the well-known student loan schemes for MBBS students state-wise.
- Bihar Student Credit Card Scheme
- Himachal Pradesh Education Loan Scheme
- Jharkhand NMDFC Education Loan Scheme
- Kerala NMDFC Education Loan Scheme
- Gujarat Education Loan Scheme
- West Bengal Student Credit Card Scheme
Subsidy In Education Loan For MBBS Students By The Central Government
Even though multiple banks offer student loan for MBBS, the interest rates are quite high. Students whose family income is low and who struggle to pay high interest rates can avail themselves of the benefits of the Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Yojana. The Central Sector Interest Subsidy Scheme (CSIS), under the umbrella of PM-USP, was launched in 2009 by the Ministry of Education (MoE), and it is aimed at helping students in the Economically Weaker Section (EWS) category. The CSIS scheme offers full interest subsidy during the moratorium period on education loans availed under the Indian Banks’ Association (IBA) Model Education Loan Scheme for technical or professional courses in India.
- The Government of India bears the interest cost for the moratorium period (course period + 1 year).
- It applies to students with gross parental/family income up to ₹4.5 lakhs per annum.
- Applicable for professional/technical courses from NAAC or NBA-accredited institutions or institutions of national importance.
- The subsidy is provided for education loans up to ₹10 lakhs, even if the sanctioned loan exceeds this amount.
- Admissible only once for undergraduate, postgraduate, or integrated courses.
- Students availing of any other government scholarships or fee reimbursement are not eligible.
Click here to learn more about the Central Sector Interest Subsidy Scheme (CSIS).
How to Apply for an Education Loan For MBBS?
The application process for student loans for MBBS can be completed online and offline. Students can visit the nearest bank branch to avail themselves of different education loans offered by them or the IBA. In addition, the loan application can also be completed by visiting the bank’s official website. For special loan schemes by the government of India, like the Pradhan Mantri Vidyalaxmi Scheme, applications can be made online only.
Application Steps For Student Loan For MBBS:
- Go to the bank’s official website, which offers education loans.
- Click on the education loan section and then right-click on Apply Now.
- Fill out the education loan application for MBBS and upload all the required documents.
- Review your application and then submit it.
- The bank officials will take a few days to review and approve your application.
- Once approved you will receive a confirmation email and letter from the bank.
- Then, you will receive the student loan for MBBA in the bank account that you selected during the application process.
Also Read: How to Apply for an Education Loan
Documents Required for Student Loan For MBBS
Listed below are the documents that applicants need to upload while applying for an education loan for MBBS.
- Admission letter issued by the college where the applicant is studying MBBS.
- Entrance exam result.
- Income proof of the co-applicant.
- ID proofs like Aadhar Card, PAN card, or Driving License.
- Address proof
- Academic documents
- Details regarding the collateral
Also Read: Documents Required for an Education Loan – An Extensive List
Conclusion
Education loans for studying MBBS empower students to pursue their dream of becoming doctors. Banks and financial institutions in India offer loans for such students with a reasonable repayment period. The government of India also runs a scheme through which students can get help from the government in paying the interest on the loan. These schemes encourage students to continue their education without worrying about financial constraints.
FAQs
How much student loan can I get for MBBS?
Several banks in India, such as SBI, offer student loans for MBBS without any upper borrowing limit. However, you must provide supporting documents to justify the amount requested.
Can I get a 100% education loan for MBBS?
Yes, most education loans for MBBS cover 100% of your expenses, including fees, hostel fees, travel expenses, books, etc. However, for bigger loans, you may have to offer collateral to claim them.
Can I get ₹50 lakhs as an education loan for MBBS?
Yes, it is possible to get ₹50 lakhs as an education loan for MBBS. Some private banks like HDFC Bank provide collateral-free education loans up to ₹50 lakh.
Can I get a ₹3 lakh education loan without a guarantor for MBBS?
Yes, a student loan for MBBS up to ₹3 lakhs is possible without a guarantor if you apply for a loan under the IBA Model Education Loan Scheme. Under this scheme, you do not need a guarantor for loans up to ₹7.5 lakhs.
Which MBBS education loan has the lowest interest rate?
Education loans for MBBS offered by the government, such as Pradhan Mantri Vidyalaxmi Scheme, Gujarat Education Loan Scheme, Kerala NMDFC Education Loan Scheme, etc., have the lowest interest rates.