Know Everything About Education Loan for Medical Students in India
Medical Education degrees like MBBS and MD have their cost of completion of degrees higher than other courses in India. Parents funding their children’s education need to be financially strong. However not every parent can support the medical course fees of their children. Although the fees of government medical colleges are within the reach of middle-class people, not everyone gets admission due to the limited number of seats in those colleges. Although government medical colleges have a moderate fee amount, private medical colleges have a substantially high fee amount.
Banks provide education loan for medical students who have secured admission in MBBS or MD courses in any recognized college or universities in India. Apart from tuition fees, other miscellaneous charges which include laboratory charges, hostel, etc. may or may not be covered by the banks. Do check with the bank before applying for the loan. Also look for a loan that provides higher payback period for if you go for higher studies after the completion of MBBS, repayment will be difficult as you would have no income after your bachelors. Look out for banks charging lower interest rates on a medical student loan so as to save money on interest amounts. Securing admission to a top recognized medical institute can play a vital role in reducing the rate of interest on the loan amount.
Loans for government medical colleges require no collateral as the loan amount would be below 7.5 lakhs in most cases while loans for private medical colleges would require collateral as in majority cases their fees exceed more than 12 lakhs. The repayment period for this loan varies from 12-15 years depending on the bank from which loan is taken.
Some banks offer a loan for PG courses soon after the completion of UG course. In such cases, banks don’t charge additional interest rates on the second loan. You can also extend the repayment period further after taking the other loan from the same bank.
Top providers of the Education loan for Medical students.
HDFC Bank - For students who have taken admission to MBBS or MD at reputed colleges, the bank offers a loan up to 10 lakhs. For loan amount above 7.5 lakhs, collateral is required. They offer preferential interest rates to students taking admission to top-ranked universities and colleges.
IDBI Bank - This bank offers all expenses including living costs during the medical course duration of the student. Loans up to 30 lakhs or 95% of the loan amount are covered for a medical student by the IDBI bank.
State Bank of India – For studies in India, a maximum of 10 lakhs will be offered as loan amount for medical college loans. Under SBI scholar education loan, if the student has taken admission to any of the 105 premier institutions as listed by SBI, loans up to 30 lakhs will be offered. No processing fee will be charged for education loans applied under this scheme.
Other than Public Sector banks and private banks, NBFCs also sponsor Educational Loan for medical students. As the loan values vary from 30-50 lakhs in majority cases, thus collateral is a mandatory factor required for these loans.
To know more about the ROIs provided by different banks on loan schemes and make the right choice of Educational loans for career needs, visit Credenc
