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Top 5 banks Providing Education Loan for Medical Students

The study of medicine, whether at the graduate or post-graduate level, can be an expensive affair in India. However, with the help of education loans for medical students, the dream of becoming a medical professional can now become a reality. Education loans for medical courses in India have interest rates that start at 8.85% p.a. onwards with a maximum repayment tenure of 15 years. With many banks offering a moratorium period, minimal documentation, and a hassle-free application process which can be completed online as well, an education loan is one of the best ways to finance your higher studies in the field of medicine in India. 

Comparison of Top 10 Medical Students Education Loan Offers 2020 

Given below are the important details of different education loan schemes for medical students for courses in India: 

 
Education Loan Schemes  Interest Rate  Maximum Loan Amount  Maximum  Tenure  Processing Fees 
Axis Bank  13.70% p.a. onwards  Rs.75 lakh  15 years  Up to Rs.10 lakh: Nil  Above Rs.10 lakh: Rs.5,000 + GST 
Bank of Baroda  8.85% p.a. onwards  Rs.80 lakh  15 years  Nil 
Canara Bank  8.85% p.a. onwards  Need based  15 years  Nil 
Federal Bank  10.05% p.a. onwards  Rs.20 lakh  15 years  Nil 
HDFC Bank  9.25% p.a. onwards  Rs.20 lakh  15 years  1% of loan amount or minimum Rs.1,000, whichever is higher 
ICICI Bank  11.25% p.a. onwards  Rs.50 lakh  10 years  Nil 
Punjab National Bank  8.80% p.a. onwards  Need based  15 years  Nil 
State Bank of India  9.30% p.a. onwards  Need based  15 years  Nil for up to Rs.20 lakh 
Tata Capital  10.99% p.a. onwards  Rs.25 lakh  6 years  2.75% of loan amount + GST 
Union Bank  8.80% p.a. onwards  Need based  15 years  Nil 

Browse education loan interest rate.

Top 5 Banks Details for Education Loans in India 

Here are the details of education loan schemes from the top five banks in India: 

1. Axis Bank Education Loan 

  • Maximum Loan Amount: Rs.75 lakh 
  • Maximum Loan Tenure: 15 years 
  • Prepayment charges: Nil 
  • For working professionals: Unsecured loans of up to Rs.20 lakh with a tenure of 10 years  
  • Balance transfer education loans available to switch over from other lenders for a lower EMI 
  • Obtain sanction letter before admission based on the individual profile 

2. Bank of Baroda Education Loan 

  • Maximum Loan Amount: Rs. 80 Lakh 
  • Maximum Loan Tenure: 15 Years 
  • Margin: Nil Up to Rs.4 lakh 
  • Moratorium period: 1 year + course duration 
  • Concessional interest rates of 0.50% for female students 

3. Canara Bank Education Loan 

  • Maximum Loan Amount: Need based 
  • Maximum Loan Tenure: 15 years 
  • Moratorium: 1 year + course duration 
  • Margin: Nil up to Rs.4 lakh 
  • Security: Nil for loan amount of up to Rs.7.5 lakh 
  • Concessional interest rates of 0.50% for female students 

4. Federal Bank Education Loan 

  • Maximum Loan Amount: Rs.20 lakh 
  • Security: None required 
  • Maximum Loan Tenure: 15 years 
  • Subsidy is offered to eligible students 
  • Possible reimbursements for expenses incurred during the ongoing academic year 

5. ICICI Bank Education Loan 

  • Maximum Loan Amount: Rs.50 lakh 
  • Security: None required for up to Rs.40 lakh 
  • Maximum Loan Tenure: 10 years 
  • Margin: None for up to Rs.20 lakh 
  • Insta Education Loan offers pre-approved loan without paperwork to bank customers against their fixed deposits instantly and online 

Eligibility for Education Loans in India 

Given below are the eligibility criteria that are common for educational loans from different banks: 

  • Indian citizenship 
  • Secured admission through an entrance test or a merit-based selection process after 10+2 
  • Secured a minimum of 50% marks during the Higher Secondary Certificate (HSC) or graduation level 

Documents Required for Education Loans in India 

Given below are the common documents required for education loans in India which may vary from bank to bank. Some banks require a certain set of documents at specific stages of the admission process if the loan is being disbursed in tranches. 

General Documents 

  • KYC documents 
  • Mark sheets for the S.S.C., H.S.C, and degree-level courses  
  • Bank statements or passbook of the last 6 months 
  • Copy of admission letter from the Institute 
  • Schedule of fees 
  • Guarantor Form (optional) 

Documents to be submitted for the first disbursement 

  • Receipt of margin paid to the educational institution with bank statements that reflect the transaction  
  • Loan agreement signed by the applicant and the co-applicants  
  • Documents for collateral security (if applicable)  
  • Sanction letter signed by the applicant and the co-applicants  
  • Demand letter from the educational institution 
  • Disbursement request form signed by the applicant and the co-applicants 
  • Form A2 signed by the applicant or co-applicants in case of educational institutions abroad 

Documents required for later disbursements 

  • Either one of the following: Marksheets, exam progress report, bonafide certificate  
  • Receipt of margin paid to the educational institution with bank statements that reflect the transaction  
  • Demand letter from the educational institution 
  • Disbursement request form signed by the applicant and the co-applicants 
  • Form A2 signed by applicant or co-applicants in case of educational institutions abroad 

How to apply for Education Loans in India: 

You can apply for a student loan in India through the online and offline method as given below: 

Online Application Method

To apply for an educational loan online, visit the official website of the bank that you wish to apply for a loan from. Navigate to the educational loan category and fill up the online form provided with the details required. A bank official will get in touch with you after your application has been received to complete the application process. You may have to upload the required supporting documents online or visit the nearest branch to do so.  

Offline Application Method 

To apply for an educational loan offline, all you need to do is visit the nearest branch of the bank that you wish to apply for the loan from. Obtain the application form, fill it up accurately with the relevant details, and submit it along with the documents as required. The bank will get in touch with you once your application has been processed to complete the process. 

FAQ's 

  1. Is a guarantor compulsory for an education loan for medical students in India? 

    Yes, a guarantor who is a co-borrower is necessary for an education loan in India. 

  2. What are the expenses that are usually covered under an education loan for medical courses in India? 

    The expenses usually covered under education loans for medical courses in India are the following: Fees for exams, labs, library, hostel, tuition, as well as refundable caution deposits, and the cost of books and sometimes laptops too that are required to complete the course. 

  3. What is the meaning of a moratorium period for an education loan? 

    A moratorium period is offered on education loans by many banks. It is a period of time during which the EMI does not have to be paid. This would be for the duration of the course and for a certain period of time after the course ends until the applicant gets employed. 

  4. Are there any tax benefits on education loans for courses in India? 

    Education loans that are taken on behalf of your children, spouse, or a student for whom you are the legal guardian is eligible for tax deduction under section 80E of the Income Tax Act. This is for interest paid on the loan. This benefit is beyond the deduction of Rs.1.5 lakh that is already permitted under Section 80C. These tax benefits can be availed once the interest starts on the loan. This deduction is available until the interest amount is full paid or for a maximum of 8 years, whichever comes earlier. 

  5. Is there any pre-payment penalty for education loans for medical students? 

    Banks do not usually charge a prepayment penalty for education loans; however, it is best to confirm this with the bank. 

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