Top 5 banks Providing Education Loan for Medical Students in India
Getting a degree in medicine is not only about merit and performance, but is also about lot of financial planning. With colleges and universities increasing their tuition fees year on year for medical studies, students and their parents needs to be armed financially. However, in times of inflation when education has become costly, many people do not find it feasible to fund their children’s medical education all by themselves. In such cases, an education loan comes to your rescue. The costs of medical education has only seen a rise over the years mainly after the mushrooming medical colleges across the country. In India, MBBS is one of the most preferred career options and the rush for securing a medicine seat will never decline.
Many Indian banks offer education loan for students who have secured a MBBS or a MD seat in a recognized medical college. Also, select Indian banks offer special concession in interest rates for girl students. There are also special education loan schemes for meritorious students who have secured an 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 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 offers a wide range of collateral options like NSC, KVP policy, HDFC Fixed Deposit and residential policy. HDFC Education Loan customers get a maximum repayment tenure of up to 15 years after 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, 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 post graduate courses. To apply for a Bank of Baroda Education Loan, the student must be an Indian resident and must have secured MBBS or MD admission in a recognized institution. Bank of Baroda Education Loan will cover costs of tuition fees payable to the college, examination fee, 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 interest rate for girl students. A concession of 1% in interest rate will be offered to students who secure an 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 less 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 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 online facility for submission of 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 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 interest rate for girl students and for students who have secured admission in the elite colleges of India.