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Estimated Cost to Study MBBS Degree in India

Estimated cost to study MBBS degree in India

Many students want to pursue MBBS, a top-grade medical course, in India. And there are fewer seats available per student. Not everyone can make it to the cut-off, even if they do, the cost of studying MBBS can be costly in case they are not admitted to a government-run medical institute. In case you fail to secure admission in any such institute but have got admission to a college that boasts of a good placement record, you should not hesitate in your pursuit. The reason an education loan is there for you to ensure the same. Read this post and know the cost of studying MBBS in India and where to apply for an education loan to ensure you pay the same with ease.

What is the Eligibility for an MBBS Course in India?

Someone who wants to know he/she can be eligible for pursuing an MBBS course in India, they have come to the right place. To apply for the MBBS course, you need to have passed the 12th examination with Physics, Chemistry and Biology as the mainstream subjects. Also, you need to undertake an entrance examination to get admission in one of the universities.

There is a lot of competition for MBBS in India, and to get your seat reserved, you need to score a minimum of 50% in NEET. Your eligibility criteria to apply for the MBBS program is dependent on your NEET score. You also need to meet the below criteria:-

  • You must have completed 12th from CBSE, CISCE, or any state board
  • Your 12th main subject should be Biology, Physics and Chemistry
  • You must have scored at least 50% mark
  • Your minimum age should 17 years
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MBBS Course Fees in India

The MBBS course fee may vary from government, private and deemed universities. The average MBBS fee for government medical colleges in India ranges from INR 20,000 to INR 7.5 lakh, whereas the MBBS fee for private colleges can range from INR 20 lakh to more than INR 1 Cr. The MBBS course in India can be completed in 5.5 years which has 4.5 years of academic education and a 1-year mandatory internship. We have put on here the fee for studying MBBS at some of the top medical colleges in India. Take a look.

MBBS Fee at Top Medical College in India

City NameCollege NameFirst Year Fee
ChennaiSri Ramachandra Institute of Higher Education and ResearchINR 22,00,000
VelloreChristian Medical CollegeINR 48,330
New DelhiAll India Institute of Medical SciencesINR 4,228 (Inclusive of Hostel and Mess Expenses)
JaipurNIMS UniversityINR 80,000
MangaloreKasturba Medical CollegeINR 14,40,000
SangliBhartiya Vidyapeeth Deemed University Medical College and HospitalINR 19,03,000
GangtokSikkim Manipal Institute of Medical and Science [SMIMS]INR 17,00,000 General
INR 7,12,000 Sikkim Concession
KochiAmrita School of MedicineINR 19,34,000 (Inclusive of Hostel and Tuition Fees)

Note: The fee structure shown above is sourced from the respective college/university and is subject to change as per the notification from college/university. The information sourced is till September 22, 2020.

MBBS Application Admission Procedure in India

The admission procedure for MBBS in India is simple, students are selected based on marks scored in the entrance examination. MBBS admission procedure starts by taking the medical entrance examination NEET. When the NEET scores are declared, a merit list is released based on the marks scored in the examination. After that, the college will call out the selected students and confirm their admission. But the problem isn’t solved for you yet, because you still have to pay the MBBS fee to the college.

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How to Borrow an Education Loan for MBBS in India?

To get funds for your MBBS admission, you need to visit the branch of the bank or an NBFC. Ask the bank representative about the education loan and select the loan amount as per your MBBS college fee structure. There are quite a few banks that can cover your education expenses during the MBBS course period. Have a look at them in the table below:-

Bank/NBFCMaximum Loan AmountInterest RateTenureProcessing Fee
State Bank of India (SBI)Above INR 20 lakh6.90% - 9.30%15 yearsNIL for loan up to INR 20 lakh
And
INR 10,000+GST for loan above INR 20 lakh
Punjab National Bank (PNB)Need-based7.55% - 9.55%15 yearsNIL-1.00% of the loan amount
Bank of BarodaINR 80 lakh7.00% - 10.10%10-15 yearsNIL
HDFC BankINR 10-20 lakh9.65% - 13.25%15 years1% of the loan amount
ICICI BankINR 1 Crore11.25% - 11.75%8-10 years1% of the loan amount
Indian Overseas BankINR 30 lakh7.15% - 10.40%15 years-
RBL BankINR 20 lakh14.15% - 16.15%7 yearsNIL
Axis BankINR 75 lakh13.70% - 15.20%15 yearsNIL for loan below INR 10 lakh
&
INR 500+GST for loan above INR 10 lakh
Canara BankNeed-based6.90% - 9.30%15 yearNIL
YES BANKNeed-based12.00% - 14.00%15 years1% of the loan amount

Education Loan Coverage on Your MBBS Course

The loan will cover the following expenses for your MBBS course:-

  • Semester fee
  • Annual fee
  • Admission fee
  • Book purchase
  • Travel expenses
  • Project work
  • Examination fee
  • Laptop purchase (if necessary for the course)

An education loan helps the student to complete the long duration course of 5.5 years without any financial issue.

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Margin Money on an Education Loan

Margin money is an amount that the lender won’t finance. You need to pay the same. As per the RBI Model scheme prepared by IBA in the year 2001, bank or NBFC will put no margin for education loans up to INR 4 lakh. However, for a loan amount above INR 4 lakh, the margin would be 5% for inland studies. So, if you are borrowing an education loan for an MBBS course in India, you should know this fact to prepare yourself.

The margin requirements are not very rigid in India. Students can use their scholarship or assistantship to compensate for the margin money. The margin is brought in on a yearly basis as and when the loan disbursements are made on a pro-rata basis. The margin amount is valid if a loan is availed from a private and public sector bank. Some NBFCs such as HDFC Credila process 100% of the loan amount.

Education Loan Repayment Post Completing the MBBS Course

The repayment in an educational loan starts when the student completes the educational course. As in MBBS case the course duration is approximately 5.5 years, so to do the repayment, you first need to know some rules which are as follows:

  • Moratorium Period:- Before your loan repayment starts, the lender will offer you a 6-12 months moratorium period in which you have to find a stable job to repay the borrowed loan amount.
  • Interest Rate During Moratorium Period:- Simple interest rate will be charged during the moratorium period of your education loan. And some lenders may also provide concessions of 0.5-1.00%.
  • Reduction in Moratorium Period:- Your education loan moratorium period is reduced to 6 months if you secure a job after the course completion, otherwise, it can be 12 months.

Tax Benefits

Under section 80-E of the Income Tax Act 1961, you can claim tax deduction on your education loan interest payment.

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Personal Loan Interest Rates October 2020
Fullerton India14.00% - 33.00%
HDFC Bank10.75% - 21.45%
ICICI Bank10.75% - 18.49%
IndusInd Bank11.25%
Kotak Bank10.99% - 20.99%
RBL17.50% - 24.00%
Standard Chartered Bank11.00% - 15.00%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates October 2020
Axis Bank7.75% - 8.55%
Bank of Baroda7.00% - 8.40%
Citibank8.20%
HDFC6.90% - 7.65%
ICICI Bank6.95% - 8.05%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank7.20% - 9.30%
LIC Housing6.90% - 7.90%
Piramal Capital & Housing Finance9.00% - 9.10%
PNB Housing Finance7.90% - 9.20%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI6.95% - 7.60%
Tata Capital9.20% - 9.35%