Table of Contents
- Types of Education Loans to Study in the USA
- Check Your Eligibility Criteria
- Find Your Top Lenders for an Education Loan to Study in the USA
- Gather the Documents
- Apply for Your USA Education Loan Online or Offline
- Approval Tips for Your Education Loan to Study in the USA
- Alternative Funding Options for Indian Students in the USA
- Frequently Asked Questions
Education loans help to bridge your financial gap to study in the USA. For eligible students, education loans provide high loan amounts at affordable rates of interest and with a longer repayment duration. There are different types of education loans in the market to finance your US studies, and you can choose the best based on your interests.
Types of Education Loans to Study in the USA
Obtaining an education loan to study in the USA becomes easier once you meet the requirements. If you have collateral to guarantee, you can receive up to 70% to 100% of the collateral value as the loan amount, along with lower interest rates.
No collateral to pledge? Check your eligibility for unsecured education loans, which require a cosigner with a good income and no past loan dues (except for international lenders).
| Secured Education Loan (With Collateral) | Unsecured Education Loan (Without Collateral) |
| Requires collateral such as property, fixed deposits, or insurance policies. | Does not require collateral but has higher interest rates. |
| Offered by banks like SBI, Bank of Baroda, Punjab National Bank, and Union Bank of India. | Offered by public & private banks (UBI, Axis, ICICI, IDBI FIRST) , NBFCs (Credila, Auxilo, Avanse, InCred), and international lenders (Prodigy & MPOWER). |
| Lower interest rates and higher loan amounts. | Faster approval process but may require a co-applicant with a stable income. |
| Longer repayment tenure. | Moderate repayment tenure |
US Cosigner Education Loans
US cosigner education loans are offered on the guarantee of a US citizen or permanent resident as the cosigner. These are provided by prominent lenders like Sallie Mae, Earnest, Abe, and Union Federal. The interest rates for US cosigner loans start at 3.47% APR onwards.
Check Your Eligibility Criteria
Checking your education loan eligibility is important before finding the right lender. The basic eligibility criteria remain almost the same for all lenders. However, the exact eligibility requirements are decided by the lender you choose for your loan.
- Admission to a recognized university in the USA (I-20 form from the university is mandatory).
- Indian nationality.
- Good academic record.
- Co-applicant (parent, sibling, or spouse) with a stable financial background.
- Age between 18 and 35 years (varies by lender).
Find Your Top Lenders for an Education Loan to Study in the USA
We’ve covered secured and unsecured education loan types for studying in the USA. Public and private banks, NBFCs, and international lenders offer education loans.
Your education loan to study in the USA search is very personal – your profile, cosigner’s profile, academic history, and past financial history are scrutinized before approval.
| Lender Type | Maximum Loan Amount | Interest Rate | Margin Money | Repayment Period |
| Public banks – SBI, BoB, UBI | Up to INR 80 Lakhs – INR 1.5 Cr | 9.65% for girls, 10.15% for boys | 10% | 10 – 12 years |
| Private banks – ICICI, Axis, IDFC FIRST | Up to INR 50 Lakhs | 10% – 13.5% | 0% – 15% | 10 – 20 years |
| NBFCs – Credila, Avanse, Auxilo, InCred | Up to 2INR 20 Lakhs | 12% – 13.5% | 0% | 10 – 15 years |
| International lenders – MPOWER Financing, Prodigy Finance | Up to 100,000 USD | 8.39% – 14% | 0% | 10 – 20 years |
Gather the Documents
Gathering your education loan documents is an important step of the process. While the exact checklist of documents may differ for each lender, the general list remains the same. Refer to the table below for details:
| From the Student | From the Cosigner |
| I-20 or offer letter | KYC document (Aadhaar, PAN, Passport, etc.) |
| Academic records since 10th and mark lists | Proof of income (ITR, Salary slips, Bank statements, etc.) |
| Entrance scores (SAT, GRE, GMAT, IELTS, TOEFL, etc.) | Collateral documents (if required) |
| Valid passport | |
| Student visa |
Apply for Your USA Education Loan Online or Offline
Once you have gathered the required documents, start with the application process online or offline. To apply online, visit your lender’s website and fill out the application form for an education loan to study in the USA. To apply offline, visit the nearest branch.
- Choose your lender
- Fill out the application form
- Submit the required documents
- Wait for the lender’s decision
- Get the loan disbursed to your school’s account
Approval Tips for Your Education Loan to Study in the USA
Getting your education loan for the USA approved quickly is a great relief. A proactive approach and careful planning can save you from unexpected hassles. Here are some tips to increase your chances of getting a student loan for the USA:
- Apply as early as possible to avoid last-minute hassles
- Have a strong academic background increases your chances of loan acceptance
- Choose globally known and reputed universities
- Have a financially strong cosigner to back your education loan application
- Compare the interest rates of all education loan options to choose the best
Alternative Funding Options for Indian Students in the USA
An education loan is not the only source of funding. Being an international student in the USA, you must explore the following options too if you want to earn better and pay back your education loan as soon as possible:
- Scholarships and grants: There are many scholarships and grants based on your academic merit and financial needs. Research them and apply for eligible options.
- Part-time work: Taking up a part-time job will help you earn to pay for your daily living expenses. As per F-1 visa rules, you can work for up to 20 hours a week.
Conclusion
Getting an education loan to study in the USA is a smooth experience if you prepare well in advance and find the right lender. Get started with the process today and explore your options. Gather the documents and apply online.
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Frequently Asked Questions
Can Indian students obtain education loans in the United States?
Indian students can obtain an education loan to study in the United States. They can apply for an education loan from Indian lenders, US lenders, and international lenders.
Can Indian students get a 100% loan in the USA?
Typically, many lenders offer student loans that cover 100% of the cost of attendance. However, it is up to the individual to get a 100% funding for the USA.
Can you get INR 40 Lakhs education loan for the USA?
Indian students can apply for an INR 40 lakhs education loan to study in the USA. The loan amount is offered by Indian banks (public & private), NBFCs, international lenders, and US banks.
Does an education loan cover your US student visa fee?
Generally, an education loan covers your student visa fee for the USA. An education loan covers most of your expenses, including your tuition, living costs, travel expenses, student visa, books, etc.
What are the requirements for a US student loan?
You must secure admission to a recognized university or college in the USA to apply for an education loan. You must have collateral or cosigner to apply, except for international lenders.
