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Looking for a student loan for MS in USA 2024? Gyandhan brings you best loan options for MS in the US. Explore various financing choices, compare interest rates, repayment terms.
The United States is a highly sought-after destination for international students, offering a wide range of educational institutions across its 50 states. Out of the 4,500 higher education institutions in the country, approximately 1,700 provide master's degree programs. Indian students particularly favor the USA for pursuing their master's degrees, as evidenced by the significant enrollment numbers. In the 2021-22 academic year, while around 27,500 students enrolled in bachelor's programs, an impressive 102,000 students pursued master's degrees.
However, it is crucial to note that studying in the USA can be expensive, with average tuition fees for international graduate students amounting to approximately USD 39,000. To finance their education, many students opt for abroad education loans, which not only cover tuition fees but also living and other expenses. Additionally, these loans serve as proof of funds for obtaining student visas to the USA. This blog will answer the question - ‘How to get loan in USA?’.
Check Your Education Loan Eligibility
Before knowing how to get student loan for MS in US it is important to know the cost of studying MS in the USA. Master's degree program fees in the USA typically ranges from USD 10,000 to USD 80,000 (INR 10 - 58 Lakhs) for a two-year duration. Higher-ranked private universities often charge slightly higher tuition fees and additional expenses. For example, Carnegie Mellon University has an annual tuition fee of approximately USD 43,000, while Harvard University charges tuition fees ranging from USD 47,000 to USD 49,000 per year and Columbia University's tuition fee is USD 29,382 per semester.
Taking the average, cost of an MS degree at private universities in the USA ranges from USD 25,000 to USD 50,000 per year (approximately INR 17 lakhs - 35 lakhs in Indian currency). On average, students typically spend USD 500 to USD 1,000 per month on living expenses, covering items such as food, accommodation, study materials, clothing, health insurance, recreational activities, and other necessities. However, living expenses can vary depending on the state, city, and individual lifestyle choices.
Student Loan for MS in USA can be broadly classified into two categories. The first category is a secured education loan, which requires the applicant to provide collateral as security during the loan application. Collateral can include movable or immovable assets such as Fixed Deposits, LIC Insurance, non-agricultural land, residential property, or commercial property. It is important to note that most public banks in India require collateral for education loans for studying abroad.
Read more about: Types of Collateral Security Acceptable for an Education Loan
Second is the loan without collateral also known as an unsecured education loan. An unsecured education loan for MS in US is a loan option that does not necessitate the borrower to pledge collateral as security. However, due to the increased risk for the lender, unsecured education loans typically come with higher interest rates compared to secured loans. Additionally, these loans often require a co-applicant or co-signer, and the loan amount is determined based on the co-applicant’s income and CIBIL score.
As previously mentioned, secured loans for MS in US necessitate collateral, allowing for higher loan amounts compared to unsecured loans. Furthermore, secured loans may not require a co-applicant. When exploring education loan options for studying MS in the USA, two recommended public sector banks are the State Bank of India (SBI) and the Union Bank of India (UBI). Here is a comparative analysis of these banks' education loan offerings for studying in the USA.
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If you lack collateral for an education loan to study MS in the USA, there are alternative options available through private banks, NBFCs, and international lenders. Private banks and NBFCs may require a co-applicant with minimum financial income and no liabilities, whereas international lenders offer loans without a co-applicant. Opting for international lenders can be beneficial as they provide loans in USD, potentially saving on foreign exchange charges and other costs. However, it is important to note that international lenders typically have higher interest rates. Each lender offering unsecured education loans for MS in USA has its own advantages and disadvantages. To aid in your decision-making process, we have prepared a comparative chart of these lenders.
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% |
|
Up to 50 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 |
The expenses which may be covered under loan as per the lender will include -
Cost to study | Living expenses | Other costs |
---|---|---|
|
|
|
Check Your Education Loan Eligibility
International students seeking an education loan for MS in US must meet certain eligibility criteria. These include:
In addition to meeting the mentioned eligibility criteria, it is crucial for students to gather all the necessary documents before applying for an education loan to study in the USA. The document checklist can be extensive, but GyanDhan provides a personalized document checklist to streamline the submission process for you.
Document required for secured education loan | Document required for unsecured education loan |
---|---|
The applicant and co-applicant KYC documents |
KYC of the applicant & co-applicant |
Citizenship and residence proofs of both the applicant and co-applicant. |
Citizenship and residence proofs of the applicant & co-applicant |
Relevant mark sheets and academic qualification records |
Relevant mark sheets of the applicant |
Proof of admission to the chosen educational institution is necessary. |
Basic academic qualification records of the applicant |
The co-applicant must provide their bank statements and income tax documents/Form 16 |
Admission proof and fees structure |
Property documents and any other related documents like land deeds and more (as per lender requirements) |
Bank statements of the co-applicant |
The fee structure of the educational program |
Income tax return / Form 16 of the co-applicant |
To avoid delays and complications in the educational loan application process, it is strongly recommended that students initiate their application as soon as they receive their admission letter from the university. Here is a general outline of the steps involved in applying for an MS loan in the USA:
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How much time it takes to repay loan after MS in USA? This is yet another question that prevails in the minds of Indian students. When acquiring an education loan for studying MS in the USA, it is crucial to consider the repayment terms. The repayment tenure and moratorium options are essential factors when selecting a lender. There are various repayment options available, including partial simple interest (PSI), simple interest (SI), and equated monthly installments (EMI). To help you make an informed decision, we have created a comparative guide that focuses on repayment as a key aspect of obtaining a loan for studying MS in the 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 |
When applying for an education loan to pursue MS in the USA, it is important to carefully evaluate and compare the offerings of different lenders. However, GyanDhan provides a convenient solution to simplify the process. By reaching out to us directly, you can benefit from our streamlined education loan assistance. Our education loan expert will assess your academic and financial background, and guide you through the available loan options. With our extensive network of partnerships with government banks, private banks, and NBFCs, we can help you find the most suitable loan for your needs. Best of all, our assistance is provided free of charge. So what are you waiting for, check your loan eligibility now!
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The total loan amount depends on the type of loan you are applying for. In secured loans, you can get up to INR 1.5 cr depending on the collateral value. In unsecured loans, you can get up to INR 75 Lakhs depending on the co-applicant's income, target university, target course, etc.
Education loans include several benefits such as tax benefits under section 80E, no principal amount payment during the study period, saving your current corpus, etc. It is always recommended to go for an education loan instead of using your savings as it can yield better interest if you invest it somewhere else smartly.
Yes, you can use both a scholarship and an education loan to furnish your financial requirements for studying abroad.
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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