Rs 10 Lakh annual bond for MBBS Admissions in Haryana

Panchkula: Through a recent notice, the State Government of Haryana has clarified that the Rs 10 lakh annual bond policy shall remain effective for this academic year as well and the MBBS students will be required to pay the amount at the start of every academic year till the completion of the MBBS degree of four and a half years.

Issuing a Public Notice in this regard, the Director of Medical Education & Research, Haryana, informed about the Customized Education Loan Scheme for the residents of Haryana-Guaranteed by Govt. of Haryana and informed that IDBI Bank is offering the rate of interest 6.90% p.a. Therefore, the DMER Haryana directed all the banks to either match the rate of interest offered by IDBI or offer a lower rate. 

"Those banks who are interested to give education loan to take admission for MBBS degree course in Govt. Medical Institutions in the State of Haryana as per Govt. notification dated 06.11.2020 and Haryana Education Credit Guarantee Scheme dated 20.11.2020 (All Notifications can be downloaded from website of the Department https://dmer.haryana.gov.in ) may send their proposal through email/special messenger latest by 11/10/2022," the Notice read.

This new bond policy had been introduced by the Haryana Government back in 2020. Medical Dialogues had reported back then that the Haryana Government had issued a new policy for medical aspirants wanting to pursue MBBS course at the government medical colleges in Haryana defining the new MBBS fee structure, liking it to government service after completion of the course.

Back then, apart from fixing the MBBS fee at Rs 80,000 along with 10 percent rise per annum, the State had also mentioned about the salient feature of the policy regarding the compulsory bond of Rs 10 lakh per annum which every candidate needs to deposit at the beginning of every year for the four and half years course duration. It was decided that this bond amount would either be paid by the candidate themselves or the government would help the candidates take loan from a government sector bank. As per the Government offer, the loan would be paid off by the Government if the candidate serves in the Government sector after completion of the medical course. Otherwise the candidate will be responsible for paying the loan.

Also Read: MBBS admissions: At Rs 10 lakh per year, government medical colleges in Haryana now as expensive as private ones

This effectively implied at that time that those who will join government service after MBBS, the fees will start at Rs 80,000. However, for those, who do not wish to do government service, the effective fees would be Rs 10 lakh per annum.

Referring to this, Haryana DMER mentioned in the recent public notice, "Government of Haryana has notified the regarding Incentivizing Doctors to opt for Haryana Government Medical Service in any Public Health Institution or Government Medical College to strengthen the medical facilities in the State and revise the fee structure for MBBS Course from Academic Session 2020-2021 in various Government Medical Colleges in the State of Haryana on 06- 11-2020."

"Each candidate selected for MBBS degree course, at the time of admission shall have to execute an annual bond for an amount of candidate. This bond for an amount of Rs. 10,00,000/- (Rs. Ten Lakh Only) minus annual fee paid by the candidate. This bond shall be paid at the start of every academic year. The candidate shall continue to pay the bond till term of the MBBS degree i.e. 4 ½ years," it added.

In this context, the bank also referred to the Customized Education Loan Scheme available for the MBBS students and mentioned, "Finance Department, Haryana vide sanction letter No. IFCC/2020/FD/303 dated 8/6/2021 has issued the "Customized Education Loan Scheme for the residents of Haryana-Guaranteed by Govt. of Haryana" and IDBI Bank as per their offering rate of interest 6.90% p.a. (i.e. RLLR+0%) on loans for studying in premier Institutes for providing Education loan under Credit Guarantee for Education Loan Scheme, which is the lowest rate of interest offered by the Bank in accordance with the scheme as per F.D notification No. IFCC/Actt/2020/1796 dated 20.11.2020."

"All banks are open to either to match the rate of interest offered by IDBI or offer a lower rate than that offered by IDBI Bank, in which case the bank offering the lowest rate of interest will be preferred. Those banks who are interested to give education loan to take admission for MBBS degree course in Govt. Medical Institutions in the State of Haryana as per Govt. notification dated 06.11.2020 and Haryana Education Credit Guarantee Scheme dated 20.11.2020 (All Notifications can be downloaded from website of the Department https://dmer.haryana.gov.in ) may send their proposal through email/special messenger latest by 11/10/2022," it further mentioned.

This bond policy, however, is not applicable for the NRI candidates and it is only applicable for admission to MBBS degree course-with effect from academic session 2020- 21, in various Government Medical Colleges in the State of Haryana.

Haryana Bond Policy: 

As per the bond policy, introduced by the State Government of Haryana back in 2020,

Each candidate selected for MBBS degree course, at the time of admission shall have to execute an annual bond for an amount of Rs.10,00,000/- (Rs. Ten Lakh only) minus annual fee paid by the candidate. This bond shall be paid at the start of every academic year. The candidate shall continue to pay the bond till term of the MBBS degree i.e. 4 ½ years.

At the time of admission to MBBS degree course, each candidate may exercise either Option (A) or Option (B) as mentioned below :-

Option (A)

The candidate can opt for Option (A) wherein, the State Government of Haryana will facilitate him/her for availing an education loan from a scheduled bank or any other Financial Institution as specified by State Government. 

OR Option (B)

The candidate can pay the entire bond amount plus annual fees himself/herself without recourse to the loan on lumpsum/ annual basis.

Terms and Conditions:

• In case the candidate obtains employment with the State Government after graduation (including internship) then the State Government shall repay the annual installments of the loan (both principal and interest) till the time he/she is serving in the Public Health Institutions of Government of Haryana. This shall be in addition to the salary and other allowances due to the Government Employees serving in Public Health Institution or Government Medical College.
• The State Government shall keep on repaying the loan (Annual installment) of the MBBS graduate till the time he/she continues to serve in any Government Public Health Institution or Government Medical College or for a period of 07 years or loan is repaid, whichever is earlier. 
• In case a candidate avails 'Option (A)' as mentioned in Sr. No. 4 above; the bond amount shall be in the shape of an education loan from a Scheduled Bank/Financial Institutions for which repayment shall commence after the moratorium period of education i.e. period of education plus one year thereafter. The tenure of the loan will be 07 years after the moratorium period.
• In case after completion of the MBBS course, candidate does not join Govt. Service in Public Health Institution or Government Medical College, then repayment of the loan installments (including principal and interest) will be sole responsibility of the candidate.
• This policy does not make it mandatory/obligatory for the State Government to provide employment to the MBBS graduate. The candidate shall have to go through the proper/prescribed procedure in terms of the applicable rules to obtain employment in the State Medical Services.
• The Government may at a later stage, introduce a Credit Guarantee Scheme for loan obtained for Medical Education in Govt. Medical Colleges to facilitate the candidate's ability to obtain the education loan for the bond amount.
• In case, if candidate leaves the Government job after serving 'x' years e.g. (x<7 years), any loan installment repayment (including principal and interest) from the date after the candidate leaves Government service will not be done by Government and the candidate shall be wholly and solely responsible for the repayment of the loan installments thereafter.
• The bond amount received by Government annually from the admitted students shall be deposited in the Haryana State Medical Education Trust to be set up in Directorate of Medical Education and Research Department to be utilized for loan installments repayments after graduation of the Students wherein required and for other purposes as approved by Govt. from time to time.
• Where the candidate exercises the Option (B) of serial no.5 of this Notification then he/she shall pay the bond amount i.e. Rs. 10 lakh per annum minus annual fee charged for a period of 4½ years to the Haryana State Medical Education Trust to be set up in the Directorate of Medical Education & Research Haryana. Further, the candidate also has the choice to switch/shift to the Option (A) at the beginning of any of the academic year of the course with prior permission of the Government of Haryana.
• The bond amount shall be kept in separate dedicated account in the form of Corpus which shall be maintained by the Haryana State Medical Education & Research Trust to be set up in Directorate of Medical Education & Research Department. The annual fee shall be deposited in the concerned Govt. Medical Colleges and the bond amount shall be deposited in the above mentioned separate dedicated account maintained by the Haryana State Medical Education Trust. The funds maintained in the Corpus shall be utilized for repayment of loan installments of graduates who have obtained Government service in Public Health Institution as required and for various activities related to development of Medical Education and Research in the State. The fund may be utilized for improvement of Infrastructure/Equipment/Teaching facilities in Government Medical Colleges.
• Policy for the candidate wishing to join PG Course after completion of MBBS courses for which bond amount in the form of education loan has been given or during in service in Public Health Institution during the repayment period of education loan shall be notified later.
• The candidate after completing MBBS course and before starting the Government Service will get themselves registered with the Haryana State Medical Council.

Click here to view the DMER Haryana notice.

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