Table of Contents
- Why Engineering Students Prefer the USA for Higher Education?
- Education Loans from Indian Banks and NBFCs: Features & Benefits
- Government-Sponsored Loan Schemes for Studying in the USA
- Bank vs NBFC vs Government Loans: Key Differences
- Eligibility Criteria for Each Loan Type
- Which Education Loan is Best for You?
- Frequently Asked Questions
Engineering in the USA is a dream cherished by thousands of Indian students. Engineering graduates from the USA work at top MNCs and government undertakings across the globe.
The educational cost of getting your engineering degree from the USA is often hefty. Here’s when education loans help. Education loans from banks and NBFCs and government assistance enable you to fill the financial gap to a large extent, paying about 80% of the overall expense.
Why Engineering Students Prefer the USA for Higher Education?
The U.S. has several globally ranked engineering schools like MIT, Stanford, and UC Berkeley. Being an international student, you get exposed to an expert faculty,
After your studies, Optional Practical Training (OPT) allows you to work in the US for a year and find opportunities to stay longer.
Education Loans from Indian Banks and NBFCs: Features & Benefits
Indian banks and NBFCs offer high-interest education loans to study engineering in the USA. NBFCs’ eligibility requirements and terms are more flexible than those of banks. Your course, university, financial profile, and cosigner influence decisions on the total amount, interest rates, and repayment conditions.
| Features | Banks | NBFCs |
| Maximum Loan Amount | INR 1.5 Cr | INR 50 Lakhs |
| Collateral Requirement | Required for above INR 7.5 Lakhs | Optional |
| Interest Rate | 9.00% – 11.00% | 11.00% – 14.00% |
| Repayment Tenure | 15 years | 10 years |
| Tax Benefits | Yes, under Section 80 E | No, except for Credila |
Top Banks and NBFCs for engineering student loans for studying in the USA
In India, public and private banks offer study abroad loans to study engineering in the USA. Banks often list eligible top institutions abroad for education loans without collateral. Here are the top banks and NBFCs for engineering student loans for studying in the USA.
| Bank | NBFc |
| SBI BoBUBICanaraAxisICICIIDFC FIRSTIDBIPunjab National Bank | CredilaAuxiloAvanse InCred |
Benefits of student loans from banks vs NBFCs
Banks and NBFCs offer unique benefits when you take an education loan for engineering in the USA. While banks are known for low-interest options, NBFCs are prominent for their flexibility. Below are the key benefits of student loans from banks and NBFCs for engineering in the USA.
| Banks | NBFCs |
| Lower interest rates | Faster loan processing |
| Longer repayment tenure | Tailored repayment plans |
| Tax benefits available | Minimal documentation |
Government-Sponsored Loan Schemes for Studying in the USA
The Indian government has introduced education loan schemes to streamline the loan application process for engineering in the USA. The prominent government schemes are Vidya Lakshmi portal, CSIS, and Dr. Ambedkar Central Sector Scheme.
| Scheme | Details |
| Vidya Lakshmi Portal | Single-window platform for multiple government-backed education loan schemes. |
| CSIS (Central Sector Interest Subsidy Scheme) | Offers full interest subsidy during the moratorium period for eligible students. |
| Dr. Ambedkar Central Sector Scheme | For OBC and EBC students pursuing Master’s and PhD abroad. |
Bank vs NBFC vs Government Loans: Key Differences
Making your education loan decision for engineering in the USA is easier when you compare the key differences of each option.
- Collateral is required for an education loan from Indian banks for more than INR 7.5 Lakhs. For NBFCs, collateral is not mandatory but optional.
- Interest rates are higher for NBFC education loans compared to bank loans
- Banks take a longer processing time and involve more paperwork than NBFCs
- Indian banks are not flexible, while NBFCs are flexible with loan terms and guidelines
Government schemes to study abroad are available to select students from eligible categories, such as SC, ST, EWS, or OBC. Education loans via government schemes may or may not require collateral security. The interest rates are subsidized for eligible students.
Eligibility Criteria for Each Loan Type
The eligibility criteria differ with the lender you choose for an education loan for engineering in the USA.
Indian Banks
- Indian citizenship
- Admission to a recognized U.S. university
- Strong academic record
- Co-applicant with stable income
- Collateral for higher loan amounts
NBFCs
- Admission offer from an eligible university
- Co-applicant preferred, but not always mandatory
- Income proof (for repayment assurance)
Government Loans
- Family income below ₹4.5–6 lakh annually (depending on scheme)
- Belonging to the OBC, SC/ST, or EBC category
- Admission to a recognized course abroad
Which Education Loan is Best for You?
Find your best education loan options for engineering in the USA with us. We will evaluate your profile for free and sort out the top options based on your eligibility, financial situation, needs, and future goals. Here are the key questions we recommend you to brainstorm to find the perfect loan option:
- How much is the loan amount you need? Check which lender offers the most of you need after deducting the margin amount and processing charges.
- Do you have collateral to pledge? If you don’t have collateral, NBFCs could be better options. However, there are exceptions for premium institutions listed by each bank.
- How much is the interest rate? If different banks and NBFCs offer you an education loan to study engineering in the USA, prioritize the ones with a lower interest rate.
Indian banks and NBFCs are prominent education loan lenders for studying in the USA. Government schemes are limited to people eligible for each scheme. Take your time to go through the terms and conditions thoroughly before making a financial decision.
Forget the endless search and processes – connect with Nomad Credit and simplify your education funding experience. We guide you from end to end for free. Join us today and explore the best possible offers for you.
Frequently Asked Questions
How much education loan can you get to study engineering in the USA?
The maximum loan amount for engineering student loans for studying in the USA can be 70%—100%, depending on your lender. Factors like your university, collateral value, and cosigner’s income influence your loan amount.
Which bank is the best for engineering student loans for studying in the USA?
Public and private banks are good options for engineering students loans to study in the USA. Choosing the best bank depends on your personal interests and eligibility.
What is the interest rate for engineering student loans for studying in the USA?
The interest rate for engineering student loans to study in the USA is 9.00% – 11.00% in public banks and 11.00% – 14.00% in NBFCs. It can vary high or low, depending on your university of admission, cosigner’s income, or collateral value.
Which bank gives a 100% student loan for engineering in the USA?
Most banks won’t give a 100% loan since there is a 5% – 15% margin. However, if your university of admission is a premium institution listed by the bank, banks may consider the chances of offering you a 100% loan.
How to apply for education loans to study engineering in the USA?
The application process for education loans to study engineering in the USA begins with checking your eligibility and finding your lender. You can start the process online by visiting the official website. For tailored application guidance, connect with Nomad Credit.
