July 27, 2025
Education loan for MBBS in India
Becoming a doctor is a dream of nearly every NEET aspirant. But many families may find it difficult to afford the cost of studying MBBS. As the tuition fees, accommodation cost and other educational costs are continuously increasing, an education loan for MBBS can be an essential financial option. In this blog, we will discuss everything related to an education loan for MBBS in India, eligibility criteria, process of application, and the best lenders who provide this loan.
Why do NEET aspirants often require education loan for MBBS
The tuition fees in India for MBBS courses vary between Rs 10 lakhs to RS 60 lakhs and it is based on the type of college ( government or private). Not just tuition fees, students have to take into consideration the cost of books, hostel, food, equipment and even coaching or exam fees. An education loan for MBBS will provide an opportunity to deserving students not to be left behind due to financial problems.
Education Loan for MBBS in India: Key characteristics
- Tuition and admission fees
- Hostel and accommodation charges
- Cost of books, instruments, and equipment
- Examination, library, and lab fees
- Travel expenses (if applicable for studies abroad)
- Other miscellaneous academic expenses
Most banks and financial institutions offer a student loan for MBBS with flexible repayment terms and a moratorium period (grace period) that allows students to start repaying the loan after completing their course plus 6–12 months.
Education Loan for MBBS in India:Who can apply?
- Must be an Indian citizen.
- Enrolled in an MBBS programme in a reputable medical college in India after qualifying in a merit-based entrance exam (NEET).
- Co-applicant (parent or guardian) having steady income.
- Must have a good academic performance.
Loan for MBBS in India: Must Needed Documents
- Admission letter from the medical college
- Academic certificates (10th, 12th, entrance exam results)
- Identity proof (Aadhar, PAN, passport, etc.)
- Address proof
- Co-applicant’s income proof(salary slips, ITR, etc.)
- Bank statements
Interest Rates and Repayment Terms
Interest rates for a study loan for MBBS can vary from 8% to 12% per annum depending on the lender and the applicant's profile.
SBI education loan for MBBS students
- Interest rate: Starts from around 8.15% per annum.
- Moratorium period: Course duration + 12 months.
- Repayment tenure: Up to 15 years.
- Loan amount: Up to Rs 30 lakhs for MBBS courses in India.
- No processing fee for Indian colleges.
Collateral and Margin Requirements
For loans below Rs 7.5 lakhs, most banks offer unsecured MBBS loan in India, meaning no collateral is required. For amounts above Rs 7.5 lakhs, students might need to provide tangible collateral (like property) along with a margin of 5% to 15%, depending on the lender's policy.
Private banks and NBFCs may offer higher amounts without collateral but usually at a higher interest rate compared to public banks.
Government Schemes and Subsidies
Several government initiatives support students applying for a student loan for MBBS, especially those from economically weaker sections. Notable schemes include:
- Central Sector Interest Subsidy Scheme (CSIS) – Offers interest subsidy during the moratorium period for students from families with annual income less than Rs 4.5 lakhs.
- Dr. Ambedkar Central Sector Scheme – For students belonging to SC/ST categories, offering 100% interest subsidy.
These schemes help in reducing the burden of repayment and make an education loan for MBBS more affordable.
Education Loan for MBBS in India: How to apply for it?
1. Select the lender: Compare the several banks and NBFCs based on their interest rate, loan repayment terms and loan amount.
2. Evaluate eligibility criteria: Make sure that you meet the academic and financial requirements strictly.
3. Gather documents: Prepare all necessary documentation.
4. Apply online/offline: Submit your application via the bank’s portal or by visiting the branch.
5. Loan sanction and disbursal: Once verified, the loan is sanctioned and the amount is disbursed directly to the educational college.
Get Your Education Loan for MBBS Approved Easily: Tips and Tricks
- Maintain a strong academic record.
- Provide accurate and complete documents.
- Choose reputed and recognized medical colleges.
- Have a financially stable co-applicant.
- Opt for banks offering study loan for MBBS with interest subsidies.
Which banks are Offering Education Loan for MBBS in India!
- State Bank of India (SBI)
- Punjab National Bank
- Bank of Baroda
- Canara Bank
- Axis Bank
- HDFC Credila
- ICICI Bank
Public sector banks generally offer better terms for secured MBBS loan in India, while private lenders provide quicker approvals for unsecured loans at a higher rate.
Conclusion
In conclusion, an education loan for MBBS plays a crucial role in supporting aspiring doctors by making quality medical education financially accessible. Government schemes and subsidies further ease the burden, especially for economically weaker sections. Whether you're looking for a loan for MBBS in India from a bank like SBI or exploring private lenders, careful planning and informed decisions can make the journey smoother. Start early, stay informed, and take confident steps toward your medical career with the right MBBS loan in India.
FAQs
1. Is it true that I can get a 100% education loan for MBBS?
Yes, many banks offer up to 100% financing for tuition and related academic expenses. Government schemes can also help cover interest during the study period.
2. Which are some of the banks where I can borrow an educational loan to study MBBS?
Some of the best banks such as SBI, bank of Baroda, Axis bank etc provide educational loan for MBBS.
3. How can I pay back an education loan to study MBBS in India?
The loan repayment period is normally between 10-15 years upon completing course and moratorium period which allows students sufficient time to establish themselves in their careers.
4. Is qualifying NEET compulsory for an MBBS loan?
Yes. To get an educational loan for pursuing MBBS in India, qualifying NEET is compulsory. If you are aiming for top ranks in NEET Exam, enroll into PrepMed, which is widely known as the best NEET coaching Institute in Kolkata.
Also read:
Top government medical colleges in India for MBBS
How to do an MBBS in India: fees, seats, and colleges
Scholarship for MBBS students in India
