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Do you need help funding your higher education in the USA? Get approval on your education loan for US before your admission. Learn about study loan types, interest rates, and application tips here.
USA is a highly sought-after study destination by international students due to its distinguished universities that offer a diverse range of experiences and opportunities. However, pursuing higher education in the USA can be costly. In the academic year 2021/2022, more than 199,000 Indian students pursued higher education in the USA, signifying its popularity among Indian students.
Another reason for its popularity is the ample employment opportunities worldwide after completing a degree. Tuition fees for different programs vary, with the average fee for international graduate students at around USD 39,000. An abroad education loan is an excellent way to finance not only tuition fees but also living and other expenses. Additionally, abroad education loans for US serve as valid proof of funds for US student visas.
Check Your Education Loan Eligibility
In general, International student loan US can be classified into two categories.
As mentioned earlier, secured study loan for USA requires you to provide collateral, which can enable you to obtain a higher loan amount compared to unsecured loans. Additionally, you may not require a co-applicant for your loan if you opt for a secured loan. If you are looking for education loan options to study in the USA, two public sector banks that you could consider are the State Bank of India (SBI) and the Union Bank of India (UBI).
Below, we have presented a comparative study of these two banks with regard to education loan in USA. This Table shows the maximum loan amount, margin money, and student loan interest rates USA.
If you don't have collateral to offer, don't worry as there are plenty of private banks, NBFCs, and international lenders that can assist you in this situation by providing non collateral education loan for US. While private banks and NBFCs may require a co-applicant or co-signer with a minimum financial income and no liabilities, international lenders offer loans without a co-applicant or co-signer. Opting for international lenders may be advantageous as they provide loans to study in the USA in USD, which can help save on foreign exchange charges and other costs, but their interest rates tend to be higher.
Hence, it can be concluded that each lender that offers study loan in USA has its own advantages and disadvantages. To assist you in selecting a suitable lender, we have created a comparative chart for all the possible lenders that offer unsecured education loan in USA. These unsecured loans are available for all Bachelor's, MBA, and Master's.
Lender Name | Maximum Loan Amount | Rate of Interest | Margin Money |
---|---|---|---|
Up to 50 Lakhs INR |
11% - 13.50% |
5% |
|
Up to 50 Lakhs INR |
10.85% - 12.50% |
0 - 15% |
|
IDFC FIRST Bank |
Up to 35 Lakhs INR |
11.50% - 12.25% |
Nil |
Up to 65 Lakhs INR |
11.25% - 13% |
Nil |
|
Up to 65 Lakhs INR |
11.25% - 13% |
Nil |
|
Up to 60 Lakhs INR |
12.25% - 14% |
Nil |
|
Up to 75 Lakhs INR |
12.50% - 13.50% |
Nil |
|
Up to 100,000 USD |
12.99% (for graduate programs)
13.99% (for undergraduate programs) |
Nil |
|
Up to 100,000 USD |
12% - 14% |
Nil |
Once your loan has been approved/sanctioned then it is time to take a disbursement. Now, when it comes to disbursement, it is your choice to take out all the approved money in one go or take it out in parts as per your requirements. Usually, later is much preferred because the interest that is charged will only be on the disbursed amount not the total approved amount. So in case you decide to take disbursement of part amount then the interest that you would be paying will be less as compared to when you would have taken a full amount disbursement.
The expenses which may be covered under loan as per the lender will include -
To obtain an abroad education loan in USA as an international student, there are specific conditions/eligibility criteria that need to be fulfilled. These consist of:
Check Your Education Loan Eligibility for Free
Apart from the eligibility criteria mentioned earlier, it is essential for students to ensure that they have all the required documents before applying for an education loan in USA for international students. The document checklist can be extensive, which is why GyanDhan offers a personalized document checklist to help you expedite the submission process. Some common documents that will be needed to secure a study abroad loan for the USA are:
Read more about:
- Educational Loan Tax Benefits Section 80E
- Types of Collateral Security an Education Loan
- All About SOP For MS in US
- Guide to Public Universities in the USA
- How to prepare for F1 student visa interview?
- F1 visa interview questions
- Cost of Living in the US
- Education Loan for MBA in USA for Indian Students
Securing an education loan to study in the USA can be a time-consuming procedure, largely influenced by the lender you select. It is advisable to initiate the loan application process for studying in the USA around 4 to 6 months before your intended enrollment date. Managing the process individually with various lenders can be challenging. However, GyanDhan offers a simplified approach to obtaining an education loan in USA for Indian students. The following steps outline how GyanDhan can assist you in acquiring an international student loan USA easily.
Step 1 - Begin the loan application process for a US university by assessing your eligibility for an abroad education loan using GyanDhan's platform.
Step 2 - Once you have completed the eligibility application, a dedicated education loan expert from GyanDhan will get in touch with you to guide you through the loan process. The expert will provide details about the loan application and suggest the two most suitable lenders based on your requirements and application. If you agree, the process will proceed.
Step 3 - Based on the lender's specific requirements, you will receive a customized document checklist. This checklist will outline all the necessary documents and offer alternative options (if available) to simplify the document arrangement process for you.
Step 4 - Depending on the lender's instructions, you will be requested to submit the documents either in hard copy (collected by a relationship officer) or soft copy (uploaded on the portal).
Step 5 - Once the documents are submitted, the verification process will commence, which typically takes around 7 to 15 days, varying according to the lender and loan type. Once the loan is approved, you will receive an agreement letter for signing. The GyanDhan user dashboard allows you to monitor the real-time progress of your loan application.
Step 6 - After signing the agreement, you can initiate the disbursement process at your convenience, following the standard procedures of the lender. Some lenders, such as private banks, may deposit the loan amount directly into your account, while international lenders may disburse the funds directly to the university.
When obtaining an abroad education loan for the USA, repayment is an important factor that should be taken into consideration. Two key aspects to consider when choosing a lender are the repayment tenure and the moratorium repayment options. Different types of repayment tenure are available, such as partial simple interest (PSI), simple interest (SI), and EMI. To assist in choosing the best lender for your situation, a comparative guide has been created that places emphasis on repayment as a significant factor for obtaining a study loan in USA.
Lender Name | Repayment Tenure | Repayment Option during moratorium |
---|---|---|
SBI |
Up to 15 years |
No payment or only SI |
UBI |
Up to 15 years |
No payment or SI |
Axis Bank |
Up to 15 Years |
SI or EMI |
ICICI Bank |
Up to 10 Years |
SI or EMI |
IDFC FIRST Bank |
Up to 12 years |
PSI or SI or EMI |
HDFC Credila |
Up to 15 Years |
PSI |
Auxilo |
Up to 15 Years |
SI |
Incred |
Up to 15 Years |
PSI or SI |
Avanse |
Up to 15 Years |
PSI or SI |
MPOWER Finance |
Up to 10 Years |
SI |
Prodigy Finance |
Up to 15 Years |
SI |
Before initiating your education loan application process for the USA, it is crucial to thoroughly explore and compare the options provided by different lenders based on various factors. However, with GyanDhan, you can bypass the challenges by directly contacting us. By leveraging our streamlined education loan process, you can benefit from our free assistance in obtaining education loans for studying in the USA. Our knowledgeable education loan counselor will assess your academic and financial profile and discuss the available loan options suitable for you. We have established partnerships with multiple lenders in the market, including government banks, private banks, and NBFCs. So what are you waiting for, check you loan eligibility now!
To secure an international student loan in the USA, you need to be accepted by a college or university first. Most lenders will require your student visa and proof of acceptance to a U.S. institution. Many also necessitate a cosigner who is a permanent US resident with good credit and has lived in the US for at least two years.
Interest rates for international student loans often depend on benchmarks such as the Prime Rate or the SOFR (Secured Overnight Financing Rate), plus a margin based on the borrower or their cosigner's creditworthiness. The Prime Rate is influenced by the federal funds rate, while the SOFR is based on the Treasury repurchase market transactions.
Repayment terms vary, but typically, students can choose from full deferral, paying interest only while in school, or immediate repayment of both interest and principal once the loan has been disbursed. The repayment period can range from 10 to 25 years, depending on the loan amount.
Yes, there are both secured (with collateral) and unsecured (without collateral) student loans available. Unsecured loans do not require an asset as security but instead consider the borrower's creditworthiness and ability to repay the loan. These loans might require a cosigner or a signature from a parent or third party.
If you opt for a student loan in the USA, interest rates may vary between 8% and 19%. However, taking a loan from your home country might be more advantageous as interest rates there are approximately around 10.25%.
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Best Lenders for Education Loan
ICICI Bank
Axis Bank
Union Bank
Prodigy
Auxilo
HDFC Credila
IDFC
InCred
MPower
Avanse
SBI
BOB