Student Loan for Medical Courses in India

Medical courses demand years of dedication, hard work, and financial commitment. For many students in India, becoming a doctor is a dream, but affording medical education can be challenging even if they manage to clear the cut-throat competition to secure a seat in a prestigious medical college. This is where student loans step in to help. Let us understand student loan for medical courses in India and how they can help in realising your dream.

The student loan for medical students UK and other destinations involves certain additional steps as compared to the student loan for medical studies in India. 

Why Choose a Student Loan for Medical Courses in India?

Medical education costs are very high and keep increasing every year, especially for private colleges. Let us understand some of the benefits of education loan for medical courses:

Expenses Included:

Student loans for med students in India can be beneficial as they ease the financial burden by covering tuition fees, hostel expenses, and other necessary costs.

Options Available:

Students without any collateral or security can also get education loans, which can help them realise their dream of becoming a healthcare professional.

Interest Rates:

The rates of interest for education loan are very low as compared to personal loans, and the repayment tenure is longer than personal loans, which makes education loans a smart choice for medical students.
 

Types of Student Loan for Medical Courses:

There are various student loan for medical courses without collateral and with collateral available in the market, but let us first understand what they mean:

Secured Education Loan:

These loans require security, so you need to pledge assets such as property, fixed deposits, government bonds, or other assets as security. Secured student finance for medical students often comes with lower interest rates.

Unsecured Education Loan:

If you don’t own any assets, don’t worry. Education loan for medical students without collateral are offered by many banks, especially for students admitted to top medical colleges. For instance, education loan for medical students in Karnataka are widely accessible.

Best Banks for Medical Education Loans in India

Here are some of the best banks for student loan for medical courses SBI and others, along with NBFC (Non-Banking Financial Companies) for education loans for medical courses in India, along with the education loan for MBBS interest rate. Refer to the table below and learn about, “How much student loans for medical school?”

Watch the video SBI education loan for MBBS students and STEM courses without collateral.

Comparison of Loan Options for Top Medical Colleges

Your sleepless nights finally rewarded you with an admission to India's most prestigious medical institutions like AIIMS, AFMC, and CMC Vellore. But now you need to look for an education loan to support your education for the following years.

Eligibility Criteria for Student Loan for Medical Courses

Education loan for medical students in India requires certain eligibility criteria. Following is the eligibility criteria for student loan for medical courses in India:

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  Applicant must hold Indian citizenship.
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   Applicant must be between 18 to 35 years of age.
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  Confirmed admission status is a must. The applicant must have secured confirmed admission to a recognized medical college in India or abroad. 
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  A good academic record is also required. Students must have completed their 10+2 (12th Standard) with qualifying marks for undergraduate medical programs.
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  A co-applicant, such as a parent or guardian, is required for full-time courses. The co-applicant's financial stability is very important in the approval of the education loan.
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  Depending on the loan amount, collateral such as property, fixed deposits, or other assets may be required, particularly for a higher student loan medical degree.
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  Some lenders may have specific conditions regarding the course duration and institution accreditation.
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  MBBS education loan eligibility may include proof of finances, especially for loans without collateral.

Documents Required for Student Loan for Medical Courses

Education loan for MBBS in private colleges requires certain documents. The following documents are required for student loan for medical courses. Please note that this list of documents is updated and accurate as per your latest details:

Applicant’s Documents:

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  Identity proof: PAN, Passport, Driver’s License, Voter ID card, or Aadhaar card.
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  Education loan application form.
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  Address proof: Recent copy of telephone bill, electricity bill, water bill, or Aadhaar card.
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  Passport (if applicable for foreign studies).
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  Academic records: 10th and 12th standard mark sheets, undergraduate semester results, and entrance exam scores (e.g., NEET).
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  Proof of admission: Admission letter (conditional admission letters are also applicable).
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  Statement of expenses: Detailed breakdown of the course expenses.
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  Two passport-sized photographs.
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  Bank account statements (if applicable).
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  Loan account statement of one year (if applicable).

Co-applicant’s Documents:

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  Identity proof: PAN, Passport, Driver’s License, or Voter ID card.
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  Address proof: Recent copy of telephone bill, electricity bill, water bill, or Aadhaar card.
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  Two passport-sized photographs.
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  Proof of income for salaried co-applicants:

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    Salary slips for the last three months.
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    Form 16 of the last two years.
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    Bank account statement for the last six months (salary account).
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  Proof of income for self-employed co-applicants:

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    Business address proof.
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    Last two years’ income tax returns.
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    TDS certificates (Form 16A).
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    Certificate of qualification (for professionals like doctors or chartered accountants).
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    Bank account statement for the last six months.
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  Legal documents for collateral (if applicable):

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    Property title deeds.
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    Valuation report.
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    Proof of ownership.

How to Get a Student Loan for Medical Courses in India?

To apply for an education loan for medical courses in India, you must follow the steps mentioned below:

Step 1: Register on the PM Vidya Lakhmi Portal. 

Step 2: Create your account by filling in your Aadhar card and mail ID. 

Step 3: Verify your email ID and log in to your account.

Step 4: Complete your profile and fill in your required documents.

Step 5: Under the lenders' lists, you will be able to access the loans provided by the different lenders.

Step 6: Apply to the most suitable one, and remember you can apply to a maximum of three lenders at a time.

If you are planning to apply for a student loan for medical students UK or other abroad destinations. Use GyanDhan, the Loan Eligibility Tool, and take the help of experts in choosing the perfect lender with most of the benefits.

Interest Subsidy Schemes for Medical Students

Medical students pursuing MBBS in India can benefit from several government schemes like:

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  Central Sector Interest Subsidy Scheme (CSIS): Provides full interest subsidy during the moratorium period (course duration + 1 year) for economically weaker sections (annual family income up to INR 4.5 lakh).

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  State-specific Schemes: Some states offer their own subsidy or student loan waiver programs for meritorious students from weaker sections.

Conclusion

Securing an education loan for MBBS in India is overwhelming because of the course duration. However, with the technology developments and a financially stable co-applicant, the process has become a little easier. Therefore, ensure that you have prepared documents in advance and have done a pre-check before submitting it to the lender. Also, while you are exploring the loan options on the PM Vidya Lakshmi Portal, ensure that you are parallel going with an NBFC. This will help you create a backup option.

On the other hand, if you are looking for an education loan for abroad studies, then use the GyanDhan. All you need to do is check your loan eligibility, and the rest is our responsibility. From profile screening to the branch visits.

Frequently Asked Questions