Loan for Education

Education Loan for MD in India

By Tata Capital
07 January 2026
9 mins read
2259

By 2030, India will need 2.7 million more doctors to achieve a favourable doctor-to-population ratio. Doctors have always been in high demand in our country, and the first step on the path to becoming a doctor is to complete an MBBS program. Most MBBS graduates decide to specialise in various fields of medicine to advance their careers.

The most obvious higher education path for doctors is to enrol in a Doctor of Medicine(MD) program. While you can practise with your MBBS degree as a medical professional in India, an MD opens doors to higher-paying specialised roles in the healthcare industry.

Education in medicine is highly sought-after in the country, with lakhs of applicants every year. This demand for medical degrees has also caused the skyrocketing costs associated with studying medicine at both undergraduate and postgraduate levels.

In this article, we explore how you can unburden your finances with the help of education loans for MD in India while pursuing your dream career in medicine.

Overview of Medical Student Loans in India (MD, MBBS, and PG)

Pursuing medical education in India, whether MBBS or postgraduate courses like MD/MS, can be expensive, and many students rely on medical student loans to fund tuition, living costs, equipment and related expenses. Lenders today offer education loan for medical students with flexible tenures, moratorium periods and competitive interest rates, making study loans accessible for aspiring doctors.

If you’re wondering “how much education loan can I get for MBBS”, lenders consider the total cost of education, college reputation, and your co-applicant’s financial strength before sanctioning the amount.

Tata Capital provides education loan for medical students covering up to ₹2 crore depending on the institution and borrower profile. These loans support tuition fees, hostel charges and study materials. Students often require a co-applicant (usually a parent or guardian) and may need collateral for larger sums, though unsecured options are also available up to ₹85 lakhs.

Postgraduate medical courses, such as MD or medical PG programmes, are also covered under education loans. These education loan for medical PG options typically have similar features to undergraduate loans but may include higher loan amounts to match increased fee structures.

Overall, with proper planning and documentation, an education loan for doctors helps make quality medical education financially viable for many students.

Also, read – Non Collateral Education Loan upto 25 Lakhs

What is a Doctor of Medicine (MD) degree?

The Doctor of Medicine (MD) degree is a three-year postgraduate degree obtained after completing the standard MBBS undergraduate degree. NEET PG is the most common entrance exam for admission into the MD program.

To be eligible for an MD program, you must have:

1. Completed an undergraduate MBBS degree.

2. Received at least 50% marks in your undergraduate studies.

3. Cleared the NEET PG or any other equivalent examination.

Scope of an MD degree

The scope of an MD degree is quite wide, and there are various avenues to explore and succeed in. Some of these include:

1. Specialising in a field of medicine to participate in advanced patient care and treatment.

2. Take up leadership roles within hospitals and clinics, such as becoming department heads and medical directors.

3. Setting up your own private practice for more autonomy and higher earnings.

4. MDs can teach the next generation of doctors by joining faculty positions at medical colleges.

5. Pursue research in medical fields, conduct clinical trials and be part of innovation teams.

6. You can also take up roles as advisers at healthcare, pharmaceutical and medical device companies and consultancies.

Also, read – Business and Professional Loans for Doctors with Easy Approval

Cost of getting an MD degree

The demand for highly specialised and skillful doctors is high. However, the hefty price tag attached to medical education in India dissuades thousands of students from entering this field.

In government medical colleges, tuition fees range from Rs. 5000 to Rs. 1.5 lakh. In private institutions, you would have to pay between Rs. 12 lakh and Rs 25 lakh per annum.

Apart from tuition fees, there are the cost of living, food expenses, book costs, and other educational expenses to consider.

Eligibility Criteria for Medical Student Loans in India

Tata Capital has a clearly outlined eligibility criteria for medical student loans:

Nationality: Applicants must be Indian citizens to apply for medical student loans in India.
Age Criteria: Eligible age range is typically 18 to 35 years at the time of loan application.
Educational Qualification: Applicants should have completed 10+2 or an equivalent diploma, which is mandatory for availing an education loan for medical students.
Course Being Pursued: Loans are available for recognised graduation or postgraduate programmes, including MBBS, MD, MS, and other professional medical degrees.
University / Institution: Admission must be secured at a listed, recognised, and accredited institution in India or abroad for eligibility under an education loan for doctors.
Basis for Loan Sanction
Loan approval may be based on:
- Pre-admission sanction or confirmed admission
- Entrance exam scores such as NEET, GRE, GMAT, etc.
- Class 12 / HSC academic performance
Loan Amount
- Up to ₹85 lakh without collateral
- Up to ₹2 crore with collateral, depending on the course and institution
Co-Borrower Requirement: A close family member such as parents, siblings, spouse, grandparents, or maternal/paternal uncle is required as a co-borrower.
Security / Collateral: Accepted security may include property, fixed deposits, or an existing home loan used as cross-collateral.

Education loans for MD

An educational loan is an investment towards your career. It covers the cost of your education so that you can focus entirely on academics and improving your skills as a doctor. In India, you can receive educational loans that fund a substantial portion of your tuition fees, and repayments towards these loans are eligible for tax deductions as per Section 80E of the Income Tax Act.

The MD degree leads to higher-paying job opportunities, and several financial institutions provide a moratorium on education loans. During this period, you do not have to make any repayments towards the loan. This makes education loans easier to repay, especially after completing specialised degrees such as the MD. Timely repayment of an education loan can also aid you to build a good credit score, which can be an advantage later in life.

To apply for an educational loan:

1. Select a financial institution offering MD education loans in India.

2. Gather all the necessary information and documents, including your identity and address proof, educational documents, collateral documents, fee structure details, and income proof.

3. Apply for the loan online. Make sure to fill out your application form carefully.

4. Once your loan has been approved, the amount will be disbursed to your educational institution directly when tuition fee payments are due.

Also, read – Courses Eligible for Education Loan in India

Documents Required for Education Loan for MD, MBBS, and Medical PG

Salaried applicants must keep the following documents ready to apply for the loan:

Recent Photograph of the applicant and co-borrower
Photo Identity Proof
- Copy of Voter ID / Passport / Driving Licence / Aadhaar Card
PAN Card or Form 60 (where applicable)
Address Proof
- Copy of Voter ID / Passport / Driving Licence / Aadhaar Card
Signature Verification
Income Proof (Salaried)
- Form 16 for the last 2 years
- Bank statements for the last 6 months
Salary Slips
- Salary slips for the last 3 months

Self-employed applicants must keep the following documents ready to apply for the loan:

Recent Photograph of the applicant and co-borrower
Photo Identity Proof
- Copy of Voter ID / Passport / Driving Licence / Aadhaar Card
PAN Card or Form 60 (where applicable)
Address Proof
- Copy of Voter ID / Passport / Driving Licence / Aadhaar Card
Signature Verification
Income Proof (Self-Employed)
- Income Tax Returns
- Profit & Loss Statement
- Balance Sheet
- Bank statements for the last 6 months

Also, read – Education Loan for Nursing

How Much Education Loan Can You Get for MBBS/MD?

When you’re planning to fund an MBBS or MD programme, understanding the potential loan amount is key to budgeting your medical education effectively.

Up to 100% of total education cost: Many lenders aim to cover the entire cost of your medical course including tuition, living expenses, books, equipment, hostel charges, and exam fees. Tata Capital’s education loans for medical students are designed to cover the full cost of medical education.
Unsecured loans (no collateral): Students can avail an unsecured education loan of up to ₹85 lakh at Tata Capital, subject to eligibility and co-borrower income assessment.
Secured loans (with collateral): By pledging assets such as property or fixed deposits, you can access higher loan amounts. Tata Capital accepts collateral such as residential property, fixed deposits, or cross-collateral through an existing home loan to offer education loans of up to ₹2 crore. This is relevant for high-cost MBBS or MD programmes in India or abroad.
Factors that influence loan amount: Your admission to a recognised medical institution, course fee structure, co-applicant income and credit history all impact the final sanctioned amount under an education loan for doctors.

MD Loan Application Process Step-by-Step

1. Submit an Online Application

Begin your education or MD loan application online by filling in basic details such as your course, institution, and contact information. This quick step helps assess your initial eligibility.

2. Upload Required Documents

Once your eligibility is confirmed, submit the necessary documents to proceed with the application. These typically include academic records, identity proof, and co-borrower details.

3. Application Verification

The lender reviews your application and verifies the submitted documents to ensure all eligibility and compliance requirements are met.

4. Loan Approval and Sanction

After successful verification, the medical student loan is approved and a sanction letter is issued outlining the loan amount, tenure, and applicable terms.

5. Loan Disbursal

The sanctioned loan amount is disbursed directly to the designated bank account or educational institution, making the process smooth and hassle-free.

Final thoughts

Whether you choose a government or a private institution for your MD degree, the cost of education will be significant. With the right education loan, you can fund your education without worrying about finances.

Tata Capital offers education loans for various educational goals. These loans offer affordable interest rates and student-friendly repayment options. Enjoy pre-admission sanctions, zero-margin money requirements, and extended loan tenures.

FAQs

What is the maximum education loan amount available for MD/MBBS students in India?

Education loan amounts for MD or MBBS students can go up to ₹85 lakh without collateral and up to ₹2 crore with collateral at Tata Capital. The loan can cover tuition fees, living expenses, and other education-related costs.

Can I get a medical student loan without collateral for an MD or MBBS in India?

Yes, many lenders offer unsecured medical student loans for MBBS or MD courses up to a defined limit. Tata Capital offers unsecured education loans of up to ₹85 lakh. Approval depends on factors such as the institution’s reputation, academic background, and the financial strength of the co-applicant.

What documents are required for applying for a medical education loan in India?

Commonly required documents include identity and address proof, PAN card, academic records, admission letter, fee structure, co-applicant income documents, and bank statements. Additional documents may be required based on whether the co-applicant is salaried or self-employed.

Are there any government interest subsidy schemes for medical student loans in India?

Yes, eligible students may benefit from government interest subsidy schemes such as the Central Sector Interest Subsidy (CSIS), which provides interest support during the moratorium period for students from economically weaker sections, subject to income criteria.

How do the interest rates differ for secured vs unsecured medical education loans?

Secured medical education loans generally offer lower interest rates due to reduced lender risk. Unsecured loans typically carry slightly higher rates, reflecting the absence of collateral.

Is a co-applicant mandatory for an unsecured medical education loan?

Yes, a co-applicant is mandatory even for unsecured medical education loans. This is usually a parent, spouse, or close family member with a stable income and credit profile.

How long is the repayment period for medical student loans in India?

Repayment tenure usually ranges from 10 to 15 years, starting after the moratorium period, which includes the course duration plus an additional grace period. At Tata Capital, education loan for medical students have tenures of up to 13 years.

Are loans available for medical PG (Postgraduate) courses other than MD?

Yes, education loans are available for various medical PG programmes such as MS, MDS, DNB, and other recognised postgraduate medical courses, subject to lender eligibility criteria.

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