Education Loans Make Medical Education Cheap. Learn about Banks Funding Medical Education.

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Pranjal Singhal

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When we talk about expensive higher education, Medical courses come out as the true paragons. With the colleges increasing fees every year, these courses have established a reputation in the education market. Yet, many students opt for courses like MBBS and MD every year due to the degree of merit and importance they hold. So, in order to finance these courses, availing an education loan becomes a necessity.

Many banks and NBFCs in India offer education loan schemes to fund higher education in both India and abroad. These institutions even extend customized schemes to customers to fulfill their needs, including schemes for medical courses. Banks focus a great deal on the medical courses as they require a lot of funding. HDFC Credila Education Loan Scheme is one of them.

These Education Loan for MBBS schemes help medical aspirant students by offering attractive features like:

  • 100% Financing

  • No Margin Money

  • Easy Repayment Options

  • Flexible Collaterals

  • Tax Benefits

By providing a quick and hassle-free education loan disbursement to the students, banks take them through a pleasing experience. Many banks don’t even charge processing fees in order to increase their customer base.

Some of the popular banks working towards Education Loan for MBBS are listed below.

1. HDFC Education Loan

Through its HDFC Credila Scheme and also the general education loan scheme, HDFC bank is working towards funding medical education by offering education loan for MBBS and other courses up to INR 10 lakh. The bank doesn’t even ask any collateral for loans up to INR 7.5 lakh. The bank doesn’t charge any margin and also offers loans up to 100% value of the collateral. HDFC bank provides door-step services and allows for repayment up to 15 years.

2. Bank of India Education Loan

The Bank of India offers education loans to those students who have secured admission in a medical course like MBBS or MD through an entrance exam or on the basis of merit. Bank of India Education Loan covers costs like tuition fees, exam fees, laboratory fees, accommodation charges, and other miscellaneous expenses too. Bank of India also has a specially designed term insurance cover.

3. IDBI Bank Education Loan

IDBI Bank Education Loan offers education loan for MBBS  and other medical courses up to INR 30 lakh and covers financing of up to 95%. However, for the education loans below INR 4 lakh, the bank charges no margin. IDBI also allows balance transfer of education loans from other banks to IDBI bank. For the students who secure admission in some of the elite colleges, IDBI offers attractive discount offers too.

4. Bank of Baroda Education Loan

The bank has special schemes with attractive discounts for medical students. The Bank of Baroda Education Loan Scheme offers a discount of 1% to those students who secure admission in premier institutions like AIIMS and AFMC. Bank of Baroda has specially established a maximum limit of INR 80 lakhs for offering Education Loan for MBBS and other medical courses. Other benefits offered by the bank include a free debit card to every applicant.

Every year, thousands of students give up on their dreams of becoming a doctor just because they find the course expensive. Banks and NBFCs are helping in bringing down this number.