.avif)
Studying in the USA is a dream for thousands of Indian students every year, and the demand for quality higher education is increasing. However, with average annual tuition fees ranging from approximately INR 29L to INR 70L or more, funding your education can be challenging.
This is where an education loan for the USA comes in, covering tuition, living expenses, visa fees, and more while also serving as proof of funds for your student visa. This guide will tell you everything you need to know about education loan in USA for indian students.
Are you parent of a JEE/NEET aspirant?
Need guidance on funding your MBA College Fees?
Top 10 Universities in the USA
There are more than 4,000 universities and colleges in the USA. These universities are known for top-tier labs, faculty, and partnerships with leading tech and engineering companies.
Take a closer look at the best-performing universities in the USA:
Minimal Docs, Maximum Approval - Apply Now.
Top Lenders and Interest Rates for USA Education Loans
For an easy education loan, you must compare lenders based on interest, margin money, repayment flexibility, and USD vs INR disbursement. International lenders may save you foreign exchange costs but charge slightly higher interest rates.
Secured Loans (Public Banks)
Secured loans are backed by collateral, such as property, fixed deposits, or other assets of value. Public sector banks like SBI and Union Bank of India are among the key lenders offering these loans.
Unsecured Loans (Private Banks & International Lenders)
Unsecured loans do not require collateral and are granted based on the borrower's academic record, the co-signer's financial profile, and the university's ranking. It comes in handy when applying for higher studies, like an education loan for MS in USA.
Get an Education Loan 10X Faster than Banks.
What Expenses Can an Education Loan Cover?
Once your loan is approved, you can choose a full or partial disbursement, paying interest only on the disbursed amount. Typical expenses covered include:
- Tuition fees
- Living expenses (rent, food, utilities)
- Health insurance
- Visa and travel fees
- Study-related expenses (lab fees, instruments, books)
Planning to study overseas but worried about finances? Don’t miss our detailed guide on how to get an education loan for abroad studies in 2024.
Eligibility Criteria for Education Loan to Study in the USA
To apply for an education loan for the USA, students must:
- Have a confirmed admission from a recognised US university.
- Be at least 18 years old.
- Maintain a strong academic record.
- Choose a course with promising career prospects.
- Provide collateral (for secured loans).
- Have a co-applicant meet income requirements (for unsecured loans).
How to Apply for an Education Loan for the USA?
To apply, start by researching and comparing lenders, interest rates, and loan types. Loans can be obtained from international institutions or domestic banks, such as those in India, and may be secured (with collateral) or unsecured (without collateral).
Begin the process 4-6 months before your enrollment to avoid delays. Here are the key steps to follow:
- Use platforms like Propelld to verify your eligibility.
- Consult with loan experts. Receive guidance and lender suggestions tailored to your profile.
- Prepare documents and get a customised checklist to avoid missing papers.
- Submit & verify your documents. Upload documents online or via a representative.
- Receive an agreement and monitor status through your dashboard.
- Choose full or partial disbursement; some lenders pay directly to the university.
Planning to take an instant loan for studies in the USA? Ensure you are familiar with the co-applicant rules first. Our guide on 'Who Can Be a Co-Applicant for an Education Loan' breaks down the eligibility and documents required.
Documents Required for Loan Application
Having a complete document set ensures faster processing. Key documents include:
- Loan application form
- Admission letter and fee structure from the US university
- Academic transcripts (School & Bachelor's)
- Standardised test scores (GRE/GMAT)
- English proficiency test scores (IELTS/TOEFL/Duolingo)
- KYC documents & passport-size photographs
- Co-applicant income proof (for unsecured loans)
- Property papers (for secured loans)
Repayment Options
Repayment plans differ by lender. Key factors include moratorium options and tenure. Evaluate the repayment tenure and moratorium carefully to choose a loan that aligns with your post-study financial plan.
While this guide focuses on the USA, if you're considering other destinations as well, our detailed blog on Education Loans for MS Abroad breaks down loan eligibility, interest rates, and application steps for international students.
Looking for an Education Loan to Study in the USA? See What Students Are Discussing!
It's common for students to face difficulties securing loans due to issues like past loan defaults or other financial setbacks. Many students assume their loan options are limited after being declined by certain banks, but that's not always the case.
Reddit User in r/Indians_StudyAbroad shared:
"I got my loan declined from IDFC and HDFC Credila due to past late payments, but I've been accepted to UMass MSCS and UCI MSWE. I'm looking for education loan options for a Master's in the USA, preferably non-collateral and without a co-applicant. Can anyone help me with suggestions?"
Insight:
Multiple lenders provide education loans without requiring collateral or a co-applicant. In your situation, non-collateral loans are a great option. However, many of these lenders assess your eligibility based on your academic performance, work experience, and the reputation of the university you've been accepted to.
What can we infer from this case?
- Lenders like Propelld provide non-collateral loans specifically designed for international students and may not require a co-applicant.
- Axis Bank and ICICI Bank also offer unsecured loans with flexible terms, but may require a co-applicant and a solid financial profile.
- Work Experience plays an important role, and your 2.5 years of experience as a software engineer can help strengthen your loan application.
Tip:
Start by researching international lenders that specialise in non-collateral loans for study in the USA. Be sure to check their eligibility requirements, as some lenders do not require co-applicants but may have higher interest rates. Keep all your documents ready and apply early to secure your funding without delays.
Getting an education loan for USA can open the door to your study abroad dreams. By comparing lenders and selecting the right option, you can make the process simple and hassle-free. Looking to begin your journey? Propelld offers customised education loans designed to match your needs and make studying in the USA easier.
Propelld has you covered with personalised education loans that fit your unique needs. Propelld offers fast digital approvals, study loans of up to ₹50 lakhs, and the ease of zero-collateral requirements.
Take the first step towards your future Apply with Propelld today!
.svg)
