Pursuing MD or MS after MBBS is one of the most competitive and expensive postgraduate medical pathways in India. While MS (Master of Surgery) focuses on surgical specialisations, MD (Doctor of Medicine) covers non-surgical clinical disciplines.
Because of the high tuition fees, clinical training costs, and living expenses, most students rely on education loans for MD/MS in India. Major banks and NBFCs now offer specialised medical PG loan schemes with higher loan amounts, easy processes and longer repayment flexibility tailored for medical students.
Key Takeaways
- MD/MS education loans in India cover tuition, equipment, hostel fees, and additional academic expenses across both banks and NBFCs.
- Students can choose between secured (collateral-backed) and unsecured (no-collateral) loans depending on loan size and expected interest rates.
- Interest rates typically start from 8.55% with collateral and 9.55% without collateral, with repayment tenures extending up to 15 years.
- A co-applicant is mandatory for unsecured loans, and lenders evaluate their income stability, credit score, and repayment capacity.
- Students must submit academic, KYC, income, and collateral documents before the loan is processed online or through the bank branch.
Education Loan for MD/MS in India: Key Highlights (2025)
Here’s a quick overview of what most banks and NBFCs offer for MD/MS education loans:
Planning to appear for your NEET PG exam? You can check our NEET PG Exam guide for complete details on the exam.
Still deciding your specialisation? Compare both pathways in our MS vs MD differences guide to choose the right course after MBBS.
Education Loan for MD/MS in India: Interest Rates & Key Details
Lets compare the leading banks and NBFCs offering education loans for MD/MS courses in India. The table below highlights interest rates, maximum loan amounts, repayment tenure, and processing fees to help you choose the best option.
Top Education Loan Providers for MD/MS in India
Different banks and NBFCs follow different approval rules, collateral norms, and ROI slabs. This comparison table helps you quickly understand how each lender treats MD/MS education loans.
Lender |
Interest Rate |
Maximum Loan Amount |
Maximum Tenure |
Processing Fees |
|
Union Bank of India
|
EBLR + 1% / EBLR + 0.75% (if collateral < 50% value) / EBLR (if collateral > 50% value) |
Up to ₹2 crore |
15 years |
Nil |
|
Axis Bank
|
From 13.70% p.a. |
Up to ₹50 lakh |
Up to 15 years |
2% of the loan amount |
|
Bank of Baroda
|
From 8.55% p.a. |
Up to ₹1.5 crore |
15 years |
Nil up to ₹7.5 lakh; 1% thereafter (max ₹10,000) |
|
Canara Bank
|
From 9.25% p.a. |
Minimum ₹7.5 lakh; maximum = 100% of collateral value |
15 years |
10% of the loan amount |
|
Federal Bank
|
From 12.55% p.a. |
India: ₹10 lakh; Abroad: ₹20 lakh |
15 years |
Nil |
|
HDFC Bank
|
From 9.50% p.a. |
Up to ₹1.5 crore |
15 years |
Up to 1.5% of the loan amount |
|
Propelld
|
11% onwards |
Up to ₹40 lakhs |
15 years |
1–3% of the loan amount |
These lenders differ not only in interest rates but also in collateral expectations and processing time, which is why comparing them before application becomes essential.
Still deciding between MD/MS specialisations?
Before you take the loan, make sure you're choosing the right branch.
Explore detailed guides on popular specialisations like MD Radiology, MD Pediatrics, MD Ayurveda and more to plan your finances better.
Get Education Loan 10X Faster than Banks.
Eligibility Criteria for Education Loan for MD/MS in India
Aspirants pursuing postgraduate medical education must meet the following eligibility requirements to qualify for an MD/MS education loan in India:
Loan Amount
Up to ₹40 lakh without collateral
Up to ₹2 crore with collateral
Expenses Covered
Academic Costs:
• Tuition, exam, library & lab fees
• Hostel/living expenses
• Books, equipment, uniforms
Additional Costs:
• Travel
• Laptop/computer
• Health insurance
Moratorium
Course duration + 12 months (no immediate repayment)
Interest Rates
With collateral: Starting ~ 8.55%
Without collateral: Starting ~ 9.55%
Repayment Tenure
Up to 15 years (including moratorium)
Co-applicant Options
Parent, spouse, sibling, or parent-in-law
Collateral Requirements
Liquid security: 1.1× the loan amount
Immovable property: 1.25× the loan amount
Want a deeper breakdown of MD/MS loan eligibility?
Check whether you meet all the required conditions before applying for an education loan.
Explore our detailed guide on education loan eligibility and application process to see how banks and NBFCs evaluate your application for education loan and how you can easily apply.
People Also Ask
Can I get an MD/MS education loan without a NEET PG score?
Yes, some lenders allow provisional approval, but final sanction typically requires NEET PG results or confirmed admission.
Does my MBBS college ranking affect loan approval?
Yes. Many lenders use institute ranking to determine loan limits, collateral requirements, and applicable interest rate brackets.
Co-Applicant for Education Loan for MD/MS in India
For unsecured MD/MS education loans, a co-applicant is mandatory. Banks evaluate their financial strength, repayment capacity, and credit history before sanctioning the loan.
Co-applicant Requirements
|
Aspect
|
Details
|
|
Loan Type
|
Unsecured (without collateral)
|
|
Is Co-applicant Required?
|
Yes
|
|
Allowed Relationships
|
Parent, spouse, or other close family member
|
|
Credit History
|
Should be strong
|
|
Income Requirement
|
Must have a stable, verifiable income
|
|
Responsibility
|
Co-applicant is equally responsible for repayment if the student cannot repay
|
|
Documents Needed
|
Personal and financial details, including income proof
|
|
Additional Requirement (If Needed)
|
Co-applicant may be asked to provide collateral like property or investments
|
A quick reminder: the co-applicant carries full financial responsibility alongside the student. They should review the loan terms, EMI structure, and repayment timeline carefully before proceeding.
Do check out the below policies to understand the functioning of EMi and Repayment in your education loan:
Interest Rates & APR Policy Page
Moratorium & Repayment Policy Page
Once you are sure about your loan type and lender, the next step is preparing the correct documentation.
Documents Required for an MD/MS Education Loan in India
Lenders require a mix of identity, academic, financial, and collateral documents before approving an MD/MS education loan. Here’s a list you can use to prepare your file in advance.
Basic Documents
Required:
• Filled education loan application form (as per lender format)
• Last 6 months’ bank statements (signed by co-borrower)
• Salary credit proof for one year (for salaried co-applicant)
For Self-Employed Co-applicant:
• One year of business transactions
• Self-attested asset/liability statement
Identity Proof: PAN card, Passport
Residential Proof (any one): Aadhaar, Voter ID, Passport, electricity/telephone bill, ration card, bank statement
Note: If permanent and current addresses differ, provide two address proofs.
Academic Documents
• NEET PG scorecard
• University ranking printout (if required by lender)
• Marksheets: 10th, 12th, MBBS degree
• Course fee structure
• Admission/Enrollment proof issued by the institution
Income Documents (Co-applicant)
For Salaried Co-applicant:
• Last 2 years’ ITR
• Last 3 months’ salary slips
• Last 2 years’ Form 16
• Employer ID card
For Self-Employed Co-applicant:
• Profit & loss account + balance sheet for last 3 years
• Business address proof
• Last 3 years’ ITR
Other Supporting Documents
• Co-applicant’s declaration confirming coverage of remaining expenses
• Advance payment receipts
• Invoices for travel, laptop, or additional expenses
• Previous year loan statement (if any)
• Explanation letter for missing ITR or financial gaps
• Gap explanation on ₹100 stamp paper (if required)
Collateral Documents (Only for Secured Loans)
• Registered Sale Agreement / Gift Deed / Will
• Property title deed
• Latest property tax receipt + electricity bill
• Link documents for 30 years (or Encumbrance Certificate)
• Previous sale deeds (for properties older than 30 years)
• Government allotment letter (if applicable)
• Original registration receipt
If you want to compare different lenders, especially NBFCs that provide loans largely without collateral, do read our blog on NBFC education loan.
Faster Approvals, Simple Documentation — Apply for Your Medical PG Education Loan with Propelld
How to Apply for an Education Loan for MD/MS in India?
Students pursuing MD/MS often work with tight schedules, so choosing a simple and time-efficient loan application method matters. You can apply for an education loan either online or offline, depending on your lender’s process and your convenience.
Here’s how both processes work.
Online Application Process
Offline Application Process
Online Application Process
Most banks, NBFCs, and digital lenders now allow end-to-end online applications. Here’s the general process:
- Visit the lender’s official loan application portal.
- Select “Education Loan” and provide details as required.
- Complete KYC verification and upload documents as required.
- Wait for loan approval, document verification, and the final sanction letter.
- Once approved, the loan is disbursed directly to the institute as per their fee schedule.
Offline Application Process
If you prefer in-person assistance, you can apply by visiting the nearest branch of your bank or financial institution.
- Collect the education loan application form from the branch.
- Fill in student, co-applicant, and course details accurately.
- Submit physical copies of all required documents.
- Attend verification calls or meetings if the bank requests additional details.
- After approval, collect your sanction letter—the lender will disburse the loan directly to your institution.
Types of Education Loans for MD/MS in India (Secured vs Unsecured)
Students pursuing MD/MS in India can choose between secured and unsecured education loans. Your choice depends on the loan amount required, interest rate expectations, and whether you can offer collateral.
1. Secured Education Loan (With Collateral)
A secured loan requires you to pledge an asset. Lenders usually offer higher amounts and lower interest rates because the risk is lower.
Key Features of Secured Loans
|
Criteria
|
Details
|
|
Collateral Requirement
|
Mandatory — immovable property (house, flat, non-agricultural land) or liquid security (FDs, government bonds, LIC/insurance policies)
|
|
Loan Amount
|
Higher loan amounts — often up to ₹2 crore depending on collateral value
|
|
Interest Rates
|
Lower compared to unsecured loans
|
|
Eligibility
|
Based on collateral value + student’s academic profile
|
|
Approval Time
|
Longer due to valuation and legal checks
|
|
Repayment Tenure
|
Longer and more flexible (up to 15 years)
|
|
Risk for Lender
|
Low
|
|
Suitability
|
Ideal for high-value courses and top-tier medical institutes
|
|
Govt Scheme Eligibility
|
Most subsidy schemes require collateral-backed loans
|
Accepted Collateral for Education Loan for MD/MS in India
Most banks require collateral for a secured MD/MS education loan. Below are the commonly accepted collateral types and the minimum value they must hold.
|
Aspect
|
Details
|
|
Collateral Requirement
|
Immovable Property: Flat, house, or non-agricultural land
Liquid Securities: Fixed deposits, government bonds, LIC/insurance policies
|
|
Collateral Value
|
Liquid Security: At least 1.1× the loan amount
Immovable Property: At least 1.25× the loan amount
|
Secured loans offer better interest rates and higher loan limits but require valuation and legal checks, which increases processing time.
2. Unsecured Education Loan (Without Collateral)
An unsecured loan is issued based on the applicant and co-applicant’s credit and income profile. These loans are quicker but typically have higher interest rates.
Key Features of Unsecured Loans
|
Criteria
|
Details
|
|
Collateral Requirement
|
None
|
|
Loan Amount
|
Usually lower; banks often cap at ₹7.5 lakh, while private lenders/NBFCs may go up to ₹40 lakh+
|
|
Interest Rates
|
Higher due to increased lending risk
|
|
Eligibility
|
Based on credit score, income stability, and academic background
|
|
Approval Time
|
Faster (no property verification)
|
|
Repayment Tenure
|
Shorter (generally 7–10 years)
|
|
Co-applicant Requirement
|
Mandatory — must have strong credit and steady income
|
|
Risk for Lender
|
High
|
|
Suitability
|
Students needing smaller amounts or quick processing
|
Unsecured loans are ideal for students needing faster approvals, provided the co-applicant has strong financials.
People Also Ask
Can you get an MD/MS education loan without collateral?
Yes, many lenders offer unsecured education loans for MD/MS if you meet their eligibility criteria.
What You Should Know
- PSU Banks: Usually require collateral for loans above ₹7.5 lakh.
- Private Banks & NBFCs: Can offer unsecured loans of ₹20–40 lakh, sometimes higher for top medical colleges.
- Approval Factors:
- Strong co-applicant income
- High credit score (700+)
- Good academic record / NEET PG rank
- Recognition/ranking of the medical institute
A financially strong co-applicant can increase loan limits, reduce interest rates, and speed up approval.
Inference:
- Choose a secured loan if you:
- Need a high loan amount (₹40 lakh–₹2 crore)
- Want lower interest rates and longer repayment
- Have suitable collateral
- Choose an unsecured loan if you:
- Need a faster loan
- Are borrowing a smaller amount
- Have a strong co-applicant with good income and credit
Read our blog on No Collateral Education Loan to know more about the lenders that can provide you higher loan amounts without collateral, their features and interest rates.
No Collateral? No Problem. Get Up to ₹40L Unsecured with Propelld
Pursuing an MD/MS is a major investment, and choosing the right education loan can make your academic journey stress-free. Whether you opt for a secured or unsecured loan, understanding interest rates, collateral rules, co-applicant requirements, and documentation in advance can significantly speed up your approval.
If you’re looking for a faster and simpler alternative, Propelld offers flexible education loans tailored for medical students, with minimal documentation, transparent APR, and quick disbursals aligned to institute fee schedules. Check your eligibility in minutes and choose a loan option that supports your medical career without delays or hidden conditions.
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