Financially studying MBBS is not as easy as it seems to be. That’s why many students ask us about Education loans for MBBS courses. At allaboutnotes today we have a article about banks which gives loans for MBBS / MD courses on based of merit.
Now the thing is firstly you have to crack one of the most difficult exams in India named NEET ( National Eligibility cum entrance examination ) or AIIMS or JIPMER to secure an MBBS seat in India. Around 1.5 million students appear for NEET exam out of which nearly half of the candidates are qualified.
Now don’t get confused with the term qualified. Qualification in NEET does not confirm a medical seat. It’s just a number to show you that you are eligible to take admission for MBBS course in India or Abroad. Total MBBS seats in India is around 70 thousand including both private and government.
Foer a gov. seat you must secure a rank under 15 thousand ( For All India Quota ) to get any chance of getting a gov. college.
The thing is, cutoffs are increasing day by day and this competetion is on a cut throat level.
What about those students who miss gov. college by small margin?
Also, Some gov. colleges even charge fess of about 1.5 lakh/year.
For some of you, this amount wont be a big one! but there are so many students who even cant afford this much also. They forcefully have to drop a year or have to choose other courses like BDS, BAMS,BHMS, Vetenary etc.
So we researched and found some financial option for you.
Some of the top banks provide education loans on the based of merit. Most of these loans doesent require a collateral ( exceptions are there ). The bank will pay your full college fee on behalf of you.
These options can definately help you to take even a non subsidised seats in a gov. medical college or You can opt for a low fee private college as well. You dont have to worry as bank will pay everything on behalf of you!
List of the Top 5 Banks Offering Education Loans For Medical Courses in India.
Many Indian banks offer education loan for students who have secured a MBBS or a MD seat in a recognized medical college ( by Medical council of India ).
Also, some selected Indian banks offer special concession in interest rates for girl students who secured a MBBS/MD seat in a recogonised college. There are also special education loan schemes for meritorious students who have secured admission in premier medical institutions like AIIMS and JIPMER. Here is a list of the top 5 banks offering education loans for medical courses in India.
- HDFC Bank Education Loan for Medical Students:
For students who have obtained admission for MBBS or MD courses at any reputed colleges, HDFC Bank offers education loan up to Rs. 10 lakh. For loans up to Rs. 7.5 lakhs, no collateral will be required. For applicants taking a loan higher than Rs. 7.5 lakhs, HDFC Bank offers a wide range of collateral options like NSC, KVP policy, HDFC Fixed Deposit and residential policy. HDFC Education Loan customers will get maximum repayment tenure of up to 15 years after the moratorium period.
For top-ranked universities and medical colleges, HDFC offers preferential interest rates for education loans. Other unique features of HDFC Bank education loan for medical courses include doorstep service, flexible repayment options, an option to avail insurance cover and wide collateral options.
- Bank of Baroda Education Loan for Medical Students:
Bank of Baroda education loan, Vidya Lakshmi, is offered to meritorious students for pursuing professional courses including medicine and engineering in India. Students can obtain funding for both graduate and postgraduate courses.
To apply for a Bank of Baroda Education Loan, the student must be an I e, costs of books & equipment’s, caution deposit and refundable deposits and other expenses required for course completion. Bank of Baroda also offers 0.5% concession in an interest rate for girl students.
A concession of 1% in interest rate will be offered to students who secure admission in premier medical institutions like AIIMS and AFMC.
- State Bank of India Education Loan for Medical Students:
SBI offers two loan variants – student loan and scholar loan to fund the costs of medical studies in India.
SBI Education Loan for MBBS and MD covers the cost of laboratory fees, examination fees, costs of equipment’s & books, caution deposit, refundable deposit and examination fees. For studies in India, a maximum of Rs. 10 lakhs will be offered as loan amount and for loan amounts up to Rs. 7.5 lakhs, no collateral security or third party guarantee is necessary.
The repayment will commence a year after completing the course and the borrower can avail a maximum repayment tenure of 15 years.
Under SBI scholar education loan, if the student has gained admission to any of the 105 premier institutions as listed by SBI, loans up to Rs. 30 lakhs will be offered. No processing fee will be charged for education loans applied under SBI Scholar loan scheme.
The advantages of SBI Scholar scheme include 100% financing, 12 months repayment holiday, fast loan sanction and fewer collateral requirements.
- Bank of India Education Loan for Medical Students
Bank of India Star Education loan aims at offering financial support to deserving students for pursuing higher education in the field of medicine. As eligibility, the student should have secured admission to a MBBS or MD course in India through a merit-based selection process or entrance test.
The course to which the student has secured admission to must have been recognized by UGC, Government, AIBMS, ICMR etc., The loan amount will cover the costs of examination fee, laboratory fees, tuition fees, accommodation charges, travel expenses and cost of computer, if the purchase is required for completion of the course.
A maximum of Rs. 10 lakh will be offered as a loan based on the repaying capacity of the parent and the course selected. For loans up to Rs, 4 lakhs, there is no margin and no security is required.
Bank of India offers an online facility for submission of an education loan application, tracking of application and other facilities. Students and parents will immensely benefit from the online solutions for education loan offered by BOI.
- IDBI Bank Education Loan for Medical Students
IDBI offers a comprehensive Education Loan for Medical Students who have secured admission through an entrance test or a merit-based selection process. For students who have secured loans under management quota, IDBI offers education loan provided that the student has secured marks above the cut-off level. For MBBS and MD programs in India, IDBI Bank offers loans up to Rs. 10 lakhs and for loans up to Rs. 4 lakhs, no security is required.
For students studying in premier educational institutions, loans up to Rs. 30 lakhs or 95% of the program cost will be offered. IDBI bank also allows balance transfer of the educational loan from other banks and financial institutions to IDBI. IDBI Education Loan will cover the costs of college tuition fees, cost of books and costs of equipment’s, laboratory fees and other essential costs required for the completion of course. IDBI offers concession in an interest rate for girl students and for students who have secured admission in the elite colleges of India.
Source – Bankbazaar
Why take a Education Loan for MBBS courses?
This question soundes to be wierd!
But there are so many mertious students who are not able to take admissions in a medical college just because they are financially not sound. Now the thing is, these loans can be benificial for you only when you have scored a nice rank in NEET exam. If you scored a nice rank in NEET but unfortuanately that rank was not up to the mark to take admision in a Gov. medical college. In that case, you can opt for some reputed private colleges as well ( via these education loans )
Because of your merit you will get a good scholorship from the college & in addition to it above listed banks provide you education loans ( that include college tuition fees, cost of books and costs of equipment’s, laboratory fees and other essential costs required for the completion of course ).
Now, if you want to apply for these loans. You have to manually talk to the bank representatives for further processing of the loan amount.