Education Loans for MBBS Students
Pursuing an MBBS degree can be expensive, but education loans help ease the financial burden. These loans cover key expenses like tuition, accommodation, books, and more—making medical education more accessible for students from all backgrounds.
Education Loans for MBBS India and Abroad
Education loans for MBBS, whether in India or abroad, cover a wide range of academic and living expenses, offer flexible repayment, and require co-applicants. Key differences lie in loan limits and collateral requirements.
Whether you’re pursuing medicine in India or overseas, explore all education loan options for MBBS students that cover tuition, living expenses, and more.
Now that you are reading about education loan for MBBS, we assume you are aware of the MBBS fees. If not, do have a look at this blog: MBBS Fees 2024: Private/Government College Fees Structures
How Much Education Loan Can I Get for MBBS Abroad?
The loan amount for MBBS abroad varies based on the lender type and whether you opt for a secured loan (with collateral) or an unsecured loan (without collateral).
If your MBBS university is on a lender’s prime list, you may get an optional moratorium without paying interest. For non-prime universities, simple interest during study is usually required.
Propelld offers up to ₹30 lakhs without collateral, making it easier for students to fund MBBS in private or government colleges.
Education Loan for MBBS Interest Rates
Given below are the interest rates on education loans for different lenders:
At Propelld, our interest rates start from as low as 11% for a profile with good academic records and salaried co- applicant. However, the interest rate might vary across profiles.
Get your Loan Disbursed 10 times Faster than Banks. Apply Now.
Education Loan for MBBS in Private College
Education loans for MBBS in private colleges are essential given the substantial fees, typically ranging from ₹50,000 to ₹30,00,000 per year. Major banks and NBFCs provide comprehensive loans covering tuition and living costs.
Education Loan for MBBS in Private College Interest Rates
Interest rates generally range from 8% to 16%, though some banks offer rates starting from 7.1% per annum. A co-applicant or guarantor is typically mandatory for loan approval in banks but NBFCs may provide higher amounts collateral free.
Repayment usually commences after course completion or securing employment.
For private MBBS colleges where fees is usually higher, NBFCs like Propelld are often better suited than banks because they finance higher ticket sizes without collateral.
Education Loan for MBBS in Government College
Securing education loans for MBBS programs in government medical colleges is typically more straightforward due to the significantly reduced fee structure, which ranges from ₹5,000 to ₹50,000 annually.
Since the total loan requirement remains relatively modest, students benefit from lower interest rates and improved chances of loan approval.
Education Loan for MBBS in Government College Interest Rates
Education loan interest rates for MBBS courses in Indian government colleges generally range from 7.10% to 10.80% per annum for public sector banks, with some variance based on loan amount, applicant profile, and whether the loan is secured or unsecured.
Calculate Your EMI for MBBS Education Loan
Calculating your EMI (Equated Monthly Instalment) for an MBBS education loan is essential for effective financial planning. Propelld offers a dedicated and easy to use EMI calculator that helps you estimate your monthly payments based on your loan amount, interest rate, and repayment tenure.
- Just check out Propelld Education Loan EMI Calculator.
- Enter Your Loan Amount that you wish to borrow.
- Choose the duration (in years or months) over which you plan to repay the loan. Input the Interest Rate
Once all details are entered, the calculator will instantly display your estimated monthly EMI, total interest payable, and the overall repayment amount.
Top 5 Banks Giving Education Loan for Medical Students in 2025
Boggled with the complex documentation and processes at banks?
Apart from these banks, there are a few NBFCs too that provide hassle free education loans for MBBS through minimal documentation and simple processes. One such NBFC is Propelld that provides education loans at a rate 10 times faster than banks.
Check out the loans provided by NBFCs, that are simple, fast and efficient.: NBFC Education Loan - Top best loans in India (2024 Updated)
Get upto 100% Education Fees Financed with Propelld. Simplified Processing Dedicated Support.
Eligibility Criteria for MBBS Education Loans
The basic eligibility criteria for MBBS education loans across most lenders are:
Understanding the education loan eligibility and application process is crucial for students to ensure a smooth approval experience, especially when applying for medical courses, and this knowledge becomes even more relevant while exploring education loans for MBBS students, as these often involve higher loan amounts and specific course-related requirements.
Minimal Documentation. No Collateral Required. Hassle Free Education Loans Disbursed in Just 7 Days. Apply Now.
Documents Required for MBBS Education Loans in India
Securing an education loan for MBBS studies in India requires submitting a set of documents to ensure the loan process goes smoothly.
Essential documents that are primarily required are:
Before you start your medical education journey, do have a look at the course structure for MBBS: MBBS Subjects For 2024: Year-Wise Syllabus And Structure.
Click here for Higher Chances of Approval than Banks - Propelld Education Loan
How to Apply for an Education Loan for MBBS?
Most banks and financial institutions offer dedicated education loan schemes for MBBS aspirants, with both online and offline application options.
Below is a comparison table outlining the step-by-step process for applying online and offline, helping you choose the method that best suits your needs.
Education Loan for MBBS Without Collateral and With Collateral
A secured education loan requires collateral, such as property or fixed deposits, to secure the loan amount. On the other hand, an unsecured education loan does not require collateral but may have a higher interest rate and stricter eligibility criteria.
Most lenders require collateral for education loans beyond a certain amount.
MBBS aspirants can explore both collateral and non-collateral education loan options depending on the loan amount, institution, and financial profile.
Let’s see the basic features of both kind of loans:
Not with Propelld! Yes, You Don't Need a Collateral for an Education Loan with Propelld. Check Out Now!
Types of Education Loans Available for MBBS Students
Do check out all details about Education Loan for Abroad Education in 2025 here.
Education Loan for MBBS: Important Terms
Here are some of the most important parameters of an education loan for MBBS:
1. Loan Amount Limit
You can secure a loan amount of up to 1.5 crores from the lenders. However, you might be required to pledge collateral above 7.5 lakhs for most lenders.
At Propelld, you can get a loan upto 30 lakhs without collateral, and more, if the course requires.
2. Expenses Inclusion
Your loan covers a wide range of expenses including academic fees, tuition fees, examination fees, books, uniforms, equipment, accommodation, travel, laptop or computer, overseas insurance, and medical insurance.
Most lenders cover tuition, hostel, books, exam fees, laptops, and even insurance. At Propelld, we ensure students know exactly what is included before approval.
3. Moratorium
Since it's an education loan, you don't need to start the repayment right away. Enjoy a moratorium period extending the total course duration plus an additional year. Finish your studies, get a job and then start the repayment.
During the moratorium, students may need to pay simple or partial simple interest, depending on the lender. Propelld allows flexible moratoriums with no mandatory EMI until after course completion.
4. Co Applicants
Co-applicants are compulsory and they can include parents, siblings, spouses, and parents-in-law.
5. Repayment Duration
Repayment duration usually includes a 6 to 24 month moratorium period. However, you must check with your lender for exact details.
6. Interest Payment
Institutions in the prime list offer optional interest payments; otherwise, simple interest applies.
7. Interest Rate
Interest rates start at 8.55% for collateralized loans and 9.55% for non-collateralized loans.
At Propelld, the interest rates vary from 11-17%, and are negotiable based on profile.
8. Collateral
Collateral is only required when the loan amount exceeds the unsecured limits. For MBBS in India, this is usually above ₹7.5 lakhs for public banks.
However, Propelld provides up to ₹30 lakhs and more, if the course requires and depending on borrower profile, all with no collateral.
9. Tax Benefits
The interest paid on the education loan is tax deductible under section 80C.
MBBS Course Fees in India 2025
Here are the course fees details for top 10 medical colleges in India:
You can also check out the MBBS course fees details across different types of medical colleges and take a better decision.
Education Loan for MBBS in Private College
Education loans for MBBS in private colleges are common due to high fees, often ranging from ₹2 lakh to ₹20 lakh per year. Banks and NBFCs offer loans covering tuition and living expenses, with amounts up to ₹75 lakh or more. Interest rates are typically 8%–14%, and a co-applicant is usually needed. Repayment starts after course completion, with flexible terms..
Education Loan for MBBS in Government College
Loans for MBBS in government colleges are easier to get because fees are much lower, usually ₹5,000–₹50,000 per year. The required loan amount is smaller, leading to lower interest and easier approval. These loans cover all major expenses, and often require little or no collateral, making government colleges a more affordable choice.
Education Loan for Medical Students in India- Various States
Education loans for MBBS students in India are crucial financial tools that enable aspiring doctors to pursue medical education without being limited by financial constraints. Different states and banks offer a range of schemes tailored to the needs of medical students, with varying eligibility criteria, loan amounts, and benefits.
Education Loan for MBBS in Karnataka
In Karnataka, Indian nationals with confirmed admission at a recognized institution can apply for education loans for MBBS, usually requiring a parent or guardian as co-applicant. Documentation includes admission proof, academic records, ID, address, and income proof.
Education Loan for MBBS in Maharashtra
In Maharashtra, students with secured MBBS admission can access schemes like the Model Education Loan and Maha Scholar Education Loan from Bank of Maharashtra. Co-applicants are required, collateral is not needed for loans up to ₹7.5 lakhs, and the average interest rate is generally around 10.1% per annum. Repayment is up to 15 years, with a moratorium of the course period plus up to a year. They can also get loan from regular private banks and NBFCs.
Education Loan for MBBS in Delhi
Delhi students can get loans up to ₹1 crore from banks, with a family co-applicant and collateral for higher amounts. The average interest rate for education loans in Delhi is typically about 10.2% per annum. Required documents are academic records, admission proof, ID, address, and income proof. Repayment is flexible, including a moratorium for the course and up to 12 months.
Education Loan for MBBS in Tamil Nadu
For MBBS in Tamil Nadu, loans cover all major expenses, with co-applicants and collateral needed for larger amounts. Interest rates from nationalized banks are typically between 8.85% and 11.60% per annum. Repayment terms are up to 15 years with a moratorium for the course plus 6-12 months, and documentation requirements are similar to other states.
Schemes for MBBS Education Loan
Several leading banks and financial institutions in India offer specialized loan schemes for MBBS students. Below is an overview of prominent MBBS education loan schemes available to aspiring medical professionals.
Scholarships and Grants for MBBS as Alternatives
Scholarships Available for MBBS Students
Scholarships and grants can be great alternatives for MBBS students studying in India and abroad. They are offered by various entities such as governments, universities, and private organizations.
Scholarships can help reduce the financial burden associated with higher education. They are typically awarded based on academic excellence, financial need, or a blend of both, providing opportunities for students from diverse backgrounds.
Some notable scholarships are:
Scholarships in India
1. National Scholarship Portal (NSP)
The NSP offers various scholarships for MBBS students, including the Central Sector Scheme for Top Class Education for SC students and the National Fellowship and Scholarship for Higher Education of ST Students.
2. Dr. Abdul Kalam Scholarship
This scholarship is offered by the Government of India to support meritorious students from economically weaker sections to pursue MBBS.
3. AICTE Pragati Scholarship for Girls
The All India Council for Technical Education (AICTE) offers this scholarship to encourage girls to pursue technical education, including MBBS.
4. Maulana Azad National Scholarship
This scholarship is available for minority students, including those pursuing MBBS.
5. State Government Scholarships
Various state governments in India offer scholarships for MBBS students based on merit or financial need. Examples include the Chief Minister's Scholarship in states like Punjab, Haryana, and Uttar Pradesh.
Scholarships Abroad
1. Commonwealth Scholarship
This scholarship is available for students from Commonwealth countries, including India, to study in the UK. It covers tuition fees, living expenses, and travel costs.
2. Fulbright Scholarship
Sponsored by the US government, this scholarship provides funding for international students, including Indians, to study in the United States.
3. Erasmus Mundus Scholarship
This scholarship is funded by the European Union and provides funding for international students to study at European universities, including for medical programs like MBBS.
4. Rhodes Scholarship
The Rhodes Scholarship covers tuition fees and living expenses for students from select countries, including India, to study at the University of Oxford.
Education Loans for MBBS Students: The Challenges
Many MBBS students face challenges when considering education loans. Here are the most common ones:
1. Lack of Knowledge
The primary reason that students don’t turn to education loans is the fact that most of them are unaware of the various loan options available to them and the application process.
2. Weak Credit History
Students often lack a strong credit history, which can hinder their ability to secure loans from traditional financial institutions.
3. High-Interest Rates
MBBS education loans can come with high-interest rates, increasing the burden of repayment. When considering an education loan for MBBS interest rate, it's crucial to compare options and choose wisely to manage repayment effectively.
4. Limited Loan Amount
Students may struggle to secure the full amount needed for their education, leading to financial strain.
Rejected by Banks for Education Loan? Don't Worry, Propelld has Got Your Back. Check Your Eligibility Now!
Securing an education loan for your MBBS studies can be challenging, given the high competition and limited seats in medical colleges. But it's the most important step in your path of “how to become a doctor.”
Propelld understands these challenges and offers a seamless solution tailored to your needs.
While most banks take 2-3 weeks to sanction your loan, Propelld does it in 24-48 hours.
Choose Propelld for a hassle-free education loan experience and pave the way for your successful career in medicine!
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