Pursuing MBBS in India involves significant financial investment, especially in private and deemed medical colleges. To help students and parents choose the right lender, this article provides a bank-wise comparison of MBBS education loans in India, including loan amount, interest rates, collateral rules, and key features.
Why Compare Banks for MBBS Education Loans?
Each bank has different:
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Loan limits
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Interest rates
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Collateral requirements
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Processing fees
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Repayment flexibility
A proper comparison helps you save money and avoid future repayment stress.
Bank-Wise MBBS Education Loan Comparison (India)
🏦 1. State Bank of India (SBI) – Scholar Loan
| Feature | Details |
|---|---|
| Maximum Loan | Up to ₹1 crore |
| Interest Rate | ~8.15% – 9.5% |
| Collateral | Required above ₹7.5 lakh |
| Moratorium | Course period + 12 months |
| Processing Fee | Nil (most cases) |
| Best For | Govt & top private medical colleges |
✅ Low interest
✅ Long repayment tenure
❌ Strict collateral valuation
🏦 2. Bank of Baroda (BOB) – Baroda Gyan Loan
| Feature | Details |
|---|---|
| Maximum Loan | Up to ₹80 lakh – ₹1 crore |
| Interest Rate | ~8.25% – 10% |
| Collateral | Required above ₹7.5 lakh |
| Repayment | Up to 15 years |
| Processing Fee | Low / Nil |
| Best For | Private & deemed universities |
🏦 3. Punjab National Bank (PNB) – PNB Pratibha
| Feature | Details |
|---|---|
| Maximum Loan | Up to ₹60 lakh – ₹1 crore |
| Interest Rate | ~8.5% – 10.25% |
| Collateral | Mandatory above ₹7.5 lakh |
| Margin | 10–15% |
| Best For | Budget-friendly MBBS loans |
🏦 4. Canara Bank – Vidya Turant
| Feature | Details |
|---|---|
| Maximum Loan | Up to ₹50 lakh – ₹75 lakh |
| Interest Rate | ~8.4% – 10% |
| Collateral | Required |
| Processing Fee | Nil |
| Best For | Govt & semi-private colleges |
🏦 5. Union Bank of India – Education Loan
| Feature | Details |
|---|---|
| Maximum Loan | Up to ₹40 lakh – ₹1 crore |
| Interest Rate | ~8.3% – 10% |
| Collateral | Required above ₹7.5 lakh |
| Best For | Low-interest public bank option |
🏦 6. HDFC Bank – Education Loan
| Feature | Details |
|---|---|
| Maximum Loan | Up to ₹1.5 crore |
| Interest Rate | ~9.5% – 13% |
| Collateral | Mandatory |
| Processing Fee | Applicable |
| Best For | High-fee private medical colleges |
✅ Faster processing
❌ Higher interest than PSU banks
🏦 7. ICICI Bank – Education Loan
| Feature | Details |
|---|---|
| Maximum Loan | Up to ₹1 crore |
| Interest Rate | ~10% – 13.5% |
| Collateral | Required |
| Processing Fee | Yes |
| Best For | Quick disbursal needs |
🏦 8. NBFCs (HDFC Credila, Avanse, Auxilo)
| Feature | Details |
|---|---|
| Maximum Loan | Up to ₹1.5 crore |
| Interest Rate | 11% – 14% |
| Collateral | Often required |
| Processing Speed | Very fast |
| Best For | High-cost MBBS admissions |
❌ High interest
❌ Higher EMI burden
Best Bank for MBBS Education Loan – Quick Verdict
| Student Need | Best Option |
|---|---|
| Lowest interest | SBI / Bank of Baroda |
| High loan amount | HDFC Bank / NBFCs |
| No processing fee | PSU banks |
| Faster approval | Private banks / NBFCs |
| Government college | SBI / Canara / PNB |
Documents Required for MBBS Education Loan
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NEET scorecard
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MBBS admission letter
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College fee structure
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Aadhaar, PAN, Passport
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Co-applicant income proof
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Collateral documents (if applicable)
Tips to Choose the Right MBBS Loan
✔ Prefer public banks for low interest
✔ Compare EMI and total repayment
✔ Check prepayment rules
✔ Avoid unnecessary insurance add-ons
✔ Apply soon after MBBS admission
Also Read: How to Get an Education Loan for Studying Abroad: Complete Step-by-Step Guide (India)
Conclusion
Choosing the right bank for an MBBS education loan in India can save lakhs of rupees over the repayment period. Public sector banks are ideal for low-interest loans, while private banks and NBFCs suit students requiring higher loan amounts and faster approvals. Compare carefully before finalizing.
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