Education Loan For MBBS in India

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The current pandemic situation has given rise to severe health conditions. It has brought the role of healthcare and doctors in prominence, where they are combating COVID-19 pandemic in the forefront. But are you aware of the cost of medical studies in India? Do you know where the journey of a doctor starts? Yes, the journey of the doctors starts after the completion of the MBBS degree. 

MBBS is a top-grade medical course and India is one of the most preferred destinations from medical aspirants worldwide. With top-notch education and facilities, it has paved the path of success for many. But for this, students are required to secure admission for MBBS courses in one of the eminent colleges in India. MBBS in India is not a cheap affair as it may cost an arm and a leg to fund the medical course. This is when the study loan for MBBS in India comes into the picture. 

Students usually finance their medical course by availing a student loan for MBBS in India. But if you were to ask anyone who has gone through the process of getting an education loan for an MBBS course, they will tell you how difficult the whole process is and most of the time there is not much support from any financial institutions. Does that mean, students will not get a study loan for MBBS in India?  

If you are willing to know the answer for the same, read this article till the end as it aims to shed light on the education loan details of lenders who offer an education loan for MBBS in India.

Types of education loan

As education loan is one of the major sources of funding for education, it is further classified into two categories. 

  • Secured education loans: Secured education loans are granted on the basis of collateral security. Here, the borrower is required to pledge the collateral with the lender in order to obtain an education loan. There are majorly three types of collateral accepted as security which includes immovable property, liquid security or any third party collateral (like house, land with defined boundaries, fixed deposits, Government bonds etc.

  • Unsecured education loans: Unsecured education loans are granted on the basis of a student's academic profile and their co-applicant’s financial profile. In this, students are not required to pledge any collateral security in order to be eligible for an unsecured education loan. Therefore, students are required to pay keen attention towards the eligibility set by the financial institutions. 

These are the two types of education loans in India. If you happen to look for an education loan for MBBS in India, connect with our team at Vidyaloans to seek professional guidance for education loans in India. 

Expenses incurred by a student for MBBS course in India

Medical schools/colleges are affiliated and accredited by National Medical Commision (NMC) and Government Authorities of India. They inspect medical colleges/institutes and lay down policies which are necessary to maintain high quality and standards in medical education. The MBBS course duration is around five-and-a-half years including 1 year Compulsory Rotating Residential Internship (CRRI). There are around  542 medical colleges in India in which 64 are  PG institutes recognized by the NMC. 

Later MBBS is followed by MS which is a post graduation course in certain specialities, MS/MD/DNB or others. Students can opt for their own choice of specialization. PG in the field of medical are usually for three years duration and diploma courses are for two years duration. 

The cost for an MBBS course in India may vary from institution to institution. Government institutions are comparatively cheaper than Private institutions. Most of the students look for multiple options to fund their MBBS course in India. One of the best ways is by availing a student loan for MBBS in India. Students can apply for unsecured education loans for upto 7.5 lakhs from Government banks through Vidyaloans. Vidyaloans will help you apply through various Government banks and will assist you throughout the loan process. One of the biggest advantages of applying through VidyaLoans is that our team shares a professional affinity with sanctioning officers and manages to keep a close check on your loan application status. So, connect with our team to seek professional guidance from the experts. 

Eligibility for MBBS admission in India

In order to secure an admission for MBBS course, students are required to qualify the below mentioned eligibility:

  1. The candidate must be at least 17 years of age at the time of MBBS admission and should not be above 25 years
  2. Students are required to qualify NEET exams as it is mandatory
  3. MBBS in India also require students to get at least 50% in the 12th examinations
  4. Students applying for MBBS should have Physics/Biology/Chemistry as their primary subjects in 12th standard. 
  5. The university/institute should be affiliated and recognized by National Medical Commission (NMC), World Health Organization (WHO), and United Nations Educational, Scientific and Cultural Organization (UNESCO). 

Recommended type of Education loan for MBBS in India

As we know there are two types of education loan, now let’s discuss what type of education loan is recommended for MBBS study in India. 

Unsecured education loans are provided by NBFCs and Private banks. The chances to get an education loan for MBBS students in India through them is very bleak. Generally financial institutions do not grant education loans for MBBS courses in India or abroad. The reason for this will be explained further  in this article. 

Therefore, in this case Government banks are the only source who are offering secured study loan for MBBS in India. However, students must not rely on this completely as government bank education loans come with its own set of terms and conditions. To know the eligibility laid down by different banks, read this article - Education Loan Eligibility Criteria and Documents Required

Type of Education Loan Recommended for MBBS course in India: Secured education loans

Maximum loan amount granted as student loan for MBBS: Upto 1.5 Cr

If you are looking for an education loan to fund your MBBS course in India, get in touch with our team at Vidyaloans. Our processing officer will assist you with the entire education loan process in India.

Secured Education Loan Details

Secured education loans require students to accommodate a collateral in order to be eligible for one. There are different types of collateral security required for education loans which involve house, flat, fixed deposits, government bonds, etc. Government banks also accept third party collateral i.e. collateral belonging to your friends, relatives, uncle, aunt etc. In most cases when students approach banks directly to get an education loan on third party collateral, bank officials generally do not put such cases on priority. This overall leads to delay in the education loan application. Therefore, we recommend students to start their education loan process via Vidyaloans as our processing officer helps you with the entire education loan process. 

Benefits of taking a secured education loan

  • Moratorium period - Moratorium period also known as repayment holiday. It is one of the major advantages for students availing an education loan from Government banks. Here, the  student is not impelled to make any payments to the lender during moratorium. To know more on this, read this article - Benefits of Moratorium Period

  • Lower interest rates - Secured education loan interest rates generally range from 8% to 9% which are comparatively lesser than NBFCs and private banks. To know the latest interest rates offered by Public banks, read this article - Government Banks Education loan interest rate in India

  • Affordable Processing Fees - Government banks have a fixed amount as processing fee that is INR 10K which is also refundable in some government banks. 

  • Tax benefit- Section 80E - In Section 80E of the Income Tax of 1961, loan applicant or the co-applicant can avail of the education loan income tax exemption. To know more, read this article - Education Loan Tax Benefits in India

There are many other benefits which a student can avail while taking a secured education loan for MBBS in India. You can get in touch with our processing officer at Vidyaloans to know all the advantages of taking a secured education loan. 

Why Don’t NBFCs Risk to Grant Unsecured Abroad Education Loan for MBBS students in India? 

There are majorly two reasons why NBFCs do not provide education loans for MBBS students in India. They are: 

  1. The duration of the MBBS course is around 5.5 years. For eg: If they provide an education loan for an MBBS student, the repayment will start after 5.5 years of his course completion and the repayment tenure for the same will be around 7-8 years. This overall hampers the flow of funds and the other student who is willing to pursue a course of 2 years may not get sufficient support due to lack of funds. Therefore, financial institutions do not provide unsecured education loans for such lengthy courses as the funds should roll fast in NBFCs.

  2. Second main reason for not granting an unsecured education loan for an MBBS course is that NBFCs can fund two master’s pursuing students instead of one student who is willing to pursue an MBBS course

If you are looking for an unsecured education loan to fund your MBBS course upto 7.5 lakhs, then we recommend you to connect with our team at Vidyaloans. Our processing officer will assist you with the entire education loan process.


Therefore, it can be concluded that getting an education loan for MBBS students in India may seem like a never-ending process. But, if you acquire sufficient knowledge about the entire process, it will make your whole education loan procedure an easy one. 

About the organization: VidyaLoans is an organization which helps Indian students in India to secure a non-collateral loan from Government banks up to 7.5 Lakhs. We have a dedicated team of professionals who assist students with queries and guide them throughout the loan process. Our Team at Vidyaloans is committed to sanction the best loan option suiting the applicant's profile and needs, in a stipulated time frame.