Education Loan Interest Rates 202022663 views
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.
Table of Contents
- 1 What is the Eligibility for an MBBS Course in India?
- 2 MBBS Course Fees in India
- 2.1 MBBS Fee at Top Medical College in India
- 2.2 MBBS Application Admission Procedure in India
- 2.3 How to Borrow an Education Loan for MBBS in India?
- 2.4 Education Loan Coverage on Your MBBS Course
- 2.5 Margin Money on an Education Loan
- 2.6 Education Loan Repayment Post Completing the MBBS Course
- 2.7 Tax Benefits
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
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 Name||College Name||First Year Fee|
|Chennai||Sri Ramachandra Institute of Higher Education and Research||INR 22,00,000|
|Vellore||Christian Medical College||INR 48,330|
|New Delhi||All India Institute of Medical Sciences||INR 4,228 (Inclusive of Hostel and Mess Expenses)|
|Jaipur||NIMS University||INR 80,000|
|Mangalore||Kasturba Medical College||INR 14,40,000|
|Sangli||Bhartiya Vidyapeeth Deemed University Medical College and Hospital||INR 19,03,000|
|Gangtok||Sikkim Manipal Institute of Medical and Science [SMIMS]||INR 17,00,000 General|
INR 7,12,000 Sikkim Concession
|Kochi||Amrita School of Medicine||INR 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.
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/NBFC||Maximum Loan Amount||Interest Rate||Tenure||Processing Fee|
|State Bank of India (SBI)||Above INR 20 lakh||6.90% - 9.30%||15 years||NIL for loan up to INR 20 lakh|
INR 10,000+GST for loan above INR 20 lakh
|Punjab National Bank (PNB)||Need-based||7.55% - 9.55%||15 years||NIL-1.00% of the loan amount|
|Bank of Baroda||INR 80 lakh||7.00% - 10.10%||10-15 years||NIL|
|HDFC Bank||INR 10-20 lakh||9.65% - 13.25%||15 years||1% of the loan amount|
|ICICI Bank||INR 1 Crore||11.25% - 11.75%||8-10 years||1% of the loan amount|
|Indian Overseas Bank||INR 30 lakh||7.15% - 10.40%||15 years||-|
|RBL Bank||INR 20 lakh||14.15% - 16.15%||7 years||NIL|
|Axis Bank||INR 75 lakh||13.70% - 15.20%||15 years||NIL for loan below INR 10 lakh|
INR 500+GST for loan above INR 10 lakh
|Canara Bank||Need-based||6.90% - 9.30%||15 year||NIL|
|YES BANK||Need-based||12.00% - 14.00%||15 years||1% 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.
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.
Under section 80-E of the Income Tax Act 1961, you can claim tax deduction on your education loan interest payment.