Education Loan for USA

The USA remains a highly sought-after study destination for international students, offering distinguished universities and a diverse range of experiences. Despite the potential cost, its popularity is evident, with over 199,000 Indian students pursuing higher education in the USA during the 2021/2022 academic year. Beyond education, the USA provides ample global employment opportunities post-graduation. With average international graduate tuition around USD 39,000, an abroad education loan becomes a crucial financial resource covering tuition, living, and other expenses. Additionally, discover a university shortlisting tool to make informed decisions, aiding in planning your study abroad journey effectively.

Types of Education Loans for the USA

  • Secured Education Loan: A secured education loan requires collateral, such as property or assets, to guarantee repayment. This collateral reduces the lender’s risk, potentially leading to lower interest rates. However, defaulting on payments puts the pledged assets at risk. Secured loans are often sought by individuals with a substantial asset base, offering favorable terms for those willing to provide security.
  • Unsecured Education Loan: An unsecured education loan doesn’t require collateral, making it accessible without risking assets. Lenders evaluate the borrower’s creditworthiness, and interest rates are typically higher than secured loans. While unsecured loans lack collateral-related risks, they demand a strong credit history for favorable terms.

Secured loans for the USA

Secured loans, requiring collateral, offer a higher loan amount compared to unsecured loans. Opting for a secured loan might eliminate the need for a co-applicant. If you’re exploring education loans for studying in the USA, consider public sector banks like the State Bank of India (SBI) and the Union Bank of India (UBI). Here’s a comparison:

State Bank of India (SBI):

SBI provides education loans for studying in the USA with a maximum amount of up to 1.5 Crores. The interest rates are 10.65% for girls and 11.50% for boys. A 10% margin money is required.

Union Bank of India (UBI):

UBI also offers education loans for studying in the USA, with a maximum loan amount of up to 1.5 Crores. The interest rates range from 10.5% to 10.85%. The margin money required is 10% for listed universities and 15% for non-listed universities.

Unsecured Loans for the USA

No collateral? Private banks, NBFCs, and international lenders can assist with education loans for studying in the USA. While private banks may require a co-applicant, international lenders offer loans without one. They provide USD loans, potentially saving on foreign exchange charges, but with higher interest rates. Check our comparative chart for unsecured education loans, covering Bachelor’s, MBA, and Master’s programs.

Several lenders offer unsecured education loans for various study programs in the USA. Axis Bank provides loans up to 50 Lakhs INR with an interest rate ranging from 11% to 13.50% and a 5% margin requirement. ICICI Bank offers loans up to 50 Lakhs INR with an interest rate between 10.85% and 12.50%, along with a margin ranging from 0% to 15%. IDFC FIRST Bank, HDFC Credila, Auxilo, Incred, Avanse, MPOWER Financing, and Prodigy Finance also provide options with varying loan amounts, interest rates, and margin requirements, catering to different financial needs for education in the USA.

Eligibility for USA Education Loan

Securing an international student loan for studying in the USA involves meeting specific eligibility criteria. These include obtaining confirmation of acceptance from a recognized American institution for a full-time program, being at least 18 years old, maintaining a positive academic history, choosing a course with promising career prospects, and, in the case of secured loans, providing collateral. These criteria collectively ensure that aspiring international students can access financial assistance to pursue their educational goals in the United States.

Before embarking on your education loan application journey for the USA, it’s crucial to thoroughly explore and compare options from different lenders based on various factors. Fortunately, GyanDhan simplifies this process. Instead of navigating challenges independently, you can directly reach out to us. Through our streamlined education loan process, you can access free assistance in securing education loans for studying in the USA. Our expert education loan counselor will evaluate your academic and financial profile, discussing the available loan options tailored to your needs. With partnerships with various lenders, including government banks, private banks, and NBFCs, we offer a comprehensive solution. Don’t wait, check your loan eligibility now!

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