Education Loan for USA
Education Loan in USA for Indian Students 2025
Education Loan for USA
In order to apply for i20 you need to furnish bank balance proof of the last 24 hours / 1 day. However, if you have an Education Loan sanction letter, you do not need to show this balance for 24 hours.
Hence you can straight away apply for i20 & speed up the VISA process. Both – Secured & Unsecured – loans are accepted for higher studies in the USA.
Pursue Your Dream Degree in USA
The USA is a top study destination for international students, offering prestigious universities and a wealth of opportunities. In the 2021/2022 academic year, over 199,000 Indian students chose the USA for higher education, reflecting its immense popularity.
One key reason for this preference is the global career prospects available after earning a degree. Tuition fees vary across programs, with international graduate students paying an average of USD 39,000 annually. Education loans are an ideal solution to cover tuition, living costs, and other expenses. Moreover, these loans also serve as valid proof of funds for US student visas, simplifying the application process.
Education Loan Eligibility for USA
To obtain an abroad education loan in USA as an international student, there are specific conditions/eligibility criteria that need to be fulfilled.
These consist of:
Good academic record.
Collateral for secured loans.
Co-applicant with sufficient income for unsecured loans.
Acceptance into a recognized American institution for a full-time program.
Types of abroad education loans in USA
The USA remains one of the most preferred study destinations for international students, offering world-class universities, diverse experiences, and excellent career opportunities. However, the cost of higher education can be significant. In the academic year 2021/2022, over 199,000 Indian students pursued their studies in the USA, highlighting its strong appeal.
One key factor driving this popularity is the global employment prospects that come with a degree from a US institution. Tuition fees vary based on programs, with international graduate students paying an average of around USD 39,000. Financial assistance options are available to help cover tuition, living expenses, and other costs. Additionally, financial support can serve as proof of funds for student visa applications.
International students can opt for two types of financial support:
Secured Financial Assistance (With Collateral): Requires pledging assets like Fixed Deposits, LIC policies, or property. Most public financial institutions mandate collateral for funding higher studies abroad.
Unsecured Financial Assistance (Without Collateral): No collateral is needed, but interest rates are higher. A co-applicant or co-signer is required, and the loan amount depends on their income and creditworthiness.
Secured Education Loan in USA
Secured financial aid requires collateral, allowing for a higher loan amount and, in some cases, eliminating the need for a co-applicant. Public sector banks like SBI and UBI offer such funding options. Key factors to consider include the maximum loan amount, margin money, and interest rates, which vary between banks.
| Lender Name | Maximum Loan Amount (in INR) | Rate of Interest | Margin Money |
|---|---|---|---|
| SBI | Up to 1.5 Cr |
10.65% (for Girls), 11.50% (for Boys) |
10% |
| UBI | Up to 1.5 Cr |
10.5%, 11.85% |
10% (Listed University) 15% (Non Listed University) |
Unsecured Education Loan in USA
For students without collateral, private banks, NBFCs, and international lenders offer funding options. While Indian lenders require a co-applicant with stable income, international lenders provide loans in USD without a co-applicant, reducing forex costs but at higher interest rates. Each lender has its pros and cons, and choosing the right one depends on factors like interest rates and eligibility.
| Lender Name | Maximum Loan Amount | Rate of Interest | Margin Money |
|---|---|---|---|
| Axis Bank | Up to 50 Lakhs INR | 11% - 13.50% | 5% |
| ICICI Bank | Up to 50 Lakhs INR | 10.85% - 12.50% | 0 - 15% |
| IDFC FIRST Bank | Up to 35 Lakhs INR | 11.50% - 12.25% | Nil |
| HDFC Credila | Up to 65 Lakhs INR | 11.25% - 13% | Nil |
| Auxilo | Up to 65 Lakhs INR | 11.25% - 13% | Nil |
| Incred | Up to 65 Lakhs INR | 12.25% - 14% | Nil |
| Avanse | Up to 75 Lakhs INR | 12.50% - 13.50% | Nil |
| MPower Financing | Up to 100,000 USD |
12.99% (for graduate programs) 13.99% (for undergraduate programs) |
Nil |
| Prodigy Finance | Up to 100,000 USD | 12% - 14% | Nil |
The expenses which may be covered under loan as per the lender will include:
Tuition fees
Visa fees
Health Insurance
Living expenses (accommodation, food, utility, and more)
Expenses related to studies (lab fees, instruments, and more)
Eligibility to get abroad education loan for USA
To obtain an abroad education loan in USA as an international student, there are specific conditions/eligibility criteria that need to be fulfilled.
To qualify for financial support, students must meet the following criteria:
Admission to a recognized U.S. institution for a full-time course
Minimum age of 18 years
Strong academic record
Course with good career prospects
Collateral for secured options
Co-applicant with stable income for non-collateral options
Documents required for an abroad education loan to study in USA
In addition to meeting eligibility criteria, students must have the necessary documents ready before applying for financial support. The documentation process can be extensive, so having a checklist can help streamline the application.
Some essential documents include:
Loan application form
Proof of admission: admission letter from university/institution
Fees structure from the university
Academic transcripts (School and Bachelor’s)
Standardized test scores - GMAT or GRE
English proficiency test score - IELTS or TOEFL or Duolingo
Applicant’s KYC documents
Passport-size photographs
Resident proof of the applicant and co-applicant
Income proof of the co-applicant (for non collateral education loan for US)
Property papers (in case of secured education loan)
How to get an abroad education loan to study in USA?
Obtaining financial support for studying in the USA involves multiple steps and varies depending on the chosen lender. It is advisable to begin the application process at least 4 to 6 months before the intended enrollment date to ensure a smooth experience.
The following steps outline how students can secure financial assistance efficiently:
Step 1: Start by assessing eligibility for financial aid through an online platform or consultation with experts in education financing.
Step 2: After completing the eligibility assessment, a dedicated loan expert will guide you through the process, providing details on application requirements and recommending the most suitable lenders based on your profile.
Step 3: A personalized checklist will be provided, outlining all the required documents along with alternative options (if applicable) to simplify the process.
Step 4: Submit the necessary documents as per lender instructions, either in hard copy (collected by an assigned officer) or soft copy (uploaded via an online portal).
Step 5: The verification process begins, typically taking 7 to 15 days depending on the lender and loan type. Once approved, an agreement letter will be issued for signing. Applicants can also track the progress of their application through online dashboards provided by lenders.
Step 6: After signing the agreement, the disbursement process can be initiated as per the lender’s policies. Some lenders transfer the amount directly to the student's account, while others disburse funds directly to the university.
Repayment of abroad education loan for USA
When securing financial assistance for studying in the USA, repayment plays a crucial role in selecting the right lender. Key factors to consider include repayment tenure and moratorium options. Lenders offer different repayment structures, such as Partial Simple Interest (PSI), Simple Interest (SI), and Equated Monthly Installments (EMI). Understanding these options can help borrowers make informed decisions. To simplify the process, a comparative guide has been designed to highlight repayment terms, making it easier to choose the most suitable financing option.
| 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 |
Before starting your education financing application, it is essential to compare different lenders based on key factors. To simplify this process, expert guidance is available to help you explore the best financing options. A dedicated loan counselor will assess your academic and financial profile to suggest the most suitable options. With partnerships across government banks, private banks, and NBFCs, accessing the right financial support has never been easier. Get started today by checking your loan eligibility!
Frequently Asked Questions
To secure an education loan for the USA, you need an acceptance letter from a U.S. institution and a valid student visa. Most lenders require a cosigner who is a U.S. permanent resident with good credit and at least two years of residency.
Interest rates are based on benchmarks like the Prime Rate or SOFR, plus a margin determined by the borrower’s or cosigner’s creditworthiness.
Repayment options include full deferral, interest-only payments during studies, or immediate repayment. Terms typically range from 10 to 15 years.
Yes, unsecured loans are available and rely on creditworthiness. These may require a cosigner or a third-party guarantor.
Loans in the USA have interest rates between 8% and 19%, while home country loans often have rates around 10.25%, potentially making them a more cost-effective option.
Education Loan in USA for Indian Students 2025
-
Education Loan for USA
In order to apply for i20 you need to furnish bank balance proof of the last 24 hours / 1 day. However, if you have an Education Loan sanction letter, you do not show this balance for 24 hours.
Hence you can straight away apply for i20 & speed up the VISA process. Both – Secured & Unsecured – loans are accepted for higher studies in the USA.
Pursue Your Dream Degree in USA
The USA is a top study destination for international students, offering prestigious universities and a wealth of opportunities. In the 2021/2022 academic year, over 199,000 Indian students chose the USA for higher education, reflecting its immense popularity.
One key reason for this preference is the global career prospects available after earning a degree. Tuition fees vary across programs, with international graduate students paying an average of USD 39,000 annually. Education loans are an ideal solution to cover tuition, living costs, and other expenses. Moreover, these loans also serve as valid proof of funds for US student visas, simplifying the application process.
Education Loan Eligibility for USA
To obtain an abroad education loan in USA as an international student, there are specific conditions/eligibility criteria that need to be fulfilled.
These consist of:
- Good academic record.
- Collateral for secured loans.
- Co-applicant with sufficient income for unsecured loans.
- Acceptance into a recognized American institution for a full-time program.
Types of abroad education loans in USA
The USA remains one of the most preferred study destinations for international students, offering world-class universities, diverse experiences, and excellent career opportunities. However, the cost of higher education can be significant. In the academic year 2021/2022, over 199,000 Indian students pursued their studies in the USA, highlighting its strong appeal.
One key factor driving this popularity is the global employment prospects that come with a degree from a US institution. Tuition fees vary based on programs, with international graduate students paying an average of around USD 39,000. Financial assistance options are available to help cover tuition, living expenses, and other costs. Additionally, financial support can serve as proof of funds for student visa applications.
International students can opt for two types of financial support:
- Secured Financial Assistance (With Collateral): Requires pledging assets like Fixed Deposits, LIC policies, or property. Most public financial institutions mandate collateral for funding higher studies abroad.
- Unsecured Financial Assistance (Without Collateral): No collateral is needed, but interest rates are higher. A co-applicant or co-signer is required, and the loan amount depends on their income and creditworthiness.
Secured Education Loan in USA
Secured financial aid requires collateral, allowing for a higher loan amount and, in some cases, eliminating the need for a co-applicant. Public sector banks like SBI and UBI offer such funding options. Key factors to consider include the maximum loan amount, margin money, and interest rates, which vary between banks.
| Lender Name | Maximum Loan Amount (in INR) | Rate of Interest | Margin Money |
|---|---|---|---|
| SBI | Up to 1.5 Cr |
10.65% (for Girls), 11.50% (for Boys) |
10% |
| UBI | Up to 1.5 Cr |
10.5%, 11.85% |
10% (Listed University) 15% (Non Listed University) |
Unsecured Education Loan in USA
For students without collateral, private banks, NBFCs, and international lenders offer funding options. While Indian lenders require a co-applicant with stable income, international lenders provide loans in USD without a co-applicant, reducing forex costs but at higher interest rates. Each lender has its pros and cons, and choosing the right one depends on factors like interest rates and eligibility.
| Lender Name | Maximum Loan Amount | Rate of Interest | Margin Money |
|---|---|---|---|
| Axis Bank | Up to 50 Lakhs INR | 11% - 13.50% | 5% |
| ICICI Bank | Up to 50 Lakhs INR | 10.85% - 12.50% | 0 - 15% |
| IDFC FIRST Bank | Up to 35 Lakhs INR | 11.50% - 12.25% | Nil |
| HDFC Credila | Up to 65 Lakhs INR | 11.25% - 13% | Nil |
| Auxilo | Up to 65 Lakhs INR | 11.25% - 13% | Nil |
| Incred | Up to 65 Lakhs INR | 12.25% - 14% | Nil |
| Avanse | Up to 75 Lakhs INR | 12.50% - 13.50% | Nil |
| MPower Financing | Up to 100,000 USD |
12.99% (for graduate programs) 13.99% (for undergraduate programs) |
Nil |
| Prodigy Finance | Up to 100,000 USD | 12% - 14% | Nil |
The expenses which may be covered under loan as per the lender will include:
- Tuition fees
- Visa fees
- Health Insurance
- Living expenses (accommodation, food, utility, and more)
- Expenses related to studies (lab fees, instruments, and more)
Eligibility to get abroad education loan for USA
To obtain an abroad education loan in USA as an international student, there are specific conditions/eligibility criteria that need to be fulfilled.
To qualify for financial support, students must meet the following criteria:
- Admission to a recognized U.S. institution for a full-time course
- Minimum age of 18 years
- Strong academic record
- Course with good career prospects
- Collateral for secured options
- Co-applicant with stable income for non-collateral options
Documents required for an abroad education loan to study in USA
To obtain an abroad education loan in USA as an international student, there are specific conditions/eligibility criteria that need to be fulfilled.
Some essential documents include:
- Loan application form
- Proof of admission: admission letter from university/institution
- Fees structure from the university
- Academic transcripts (School and Bachelor’s)
- Standardized test scores - GMAT or GRE
- English proficiency test score - IELTS or TOEFL or Duolingo
- Applicant’s KYC documents
- Passport-size photographs
- Resident proof of the applicant and co-applicant
- Income proof of the co-applicant (for non collateral education loan for US)
- Property papers (in case of secured education loan)
How to get an abroad education loan to study in USA?
Obtaining financial support for studying in the USA involves multiple steps and varies depending on the chosen lender. It is advisable to begin the application process at least 4 to 6 months before the intended enrollment date to ensure a smooth experience.
The following steps outline how students can secure financial assistance efficiently:
- Step 1: Start by assessing eligibility for financial aid through an online platform or consultation with experts in education financing.
- Step 2: After completing the eligibility assessment, a dedicated loan expert will guide you through the process, providing details on application requirements and recommending the most suitable lenders based on your profile.
- Step 3: A personalized checklist will be provided, outlining all the required documents along with alternative options (if applicable) to simplify the process.
- Step 4: Submit the necessary documents as per lender instructions, either in hard copy (collected by an assigned officer) or soft copy (uploaded via an online portal).
- Step 5: The verification process begins, typically taking 7 to 15 days depending on the lender and loan type. Once approved, an agreement letter will be issued for signing. Applicants can also track the progress of their application through online dashboards provided by lenders.
- Step 6: After signing the agreement, the disbursement process can be initiated as per the lender’s policies. Some lenders transfer the amount directly to the student's account, while others disburse funds directly to the university.
Repayment of abroad education loan for USA
When securing financial assistance for studying in the USA, repayment plays a crucial role in selecting the right lender. Key factors to consider include repayment tenure and moratorium options. Lenders offer different repayment structures, such as Partial Simple Interest (PSI), Simple Interest (SI), and Equated Monthly Installments (EMI). Understanding these options can help borrowers make informed decisions. To simplify the process, a comparative guide has been designed to highlight repayment terms, making it easier to choose the most suitable financing option.
| 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 |
Before starting your education financing application, it is essential to compare different lenders based on key factors. To simplify this process, expert guidance is available to help you explore the best financing options. A dedicated loan counselor will assess your academic and financial profile to suggest the most suitable options. With partnerships across government banks, private banks, and NBFCs, accessing the right financial support has never been easier. Get started today by checking your loan eligibility!
Frequently Asked Questions
To secure an education loan for the USA, you need an acceptance letter from a U.S. institution and a valid student visa. Most lenders require a cosigner who is a U.S. permanent resident with good credit and at least two years of residency.
Interest rates are based on benchmarks like the Prime Rate or SOFR, plus a margin determined by the borrower’s or cosigner’s creditworthiness.
Repayment options include full deferral, interest-only payments during studies, or immediate repayment. Terms typically range from 10 to 15 years.
Yes, unsecured loans are available and rely on creditworthiness. These may require a cosigner or a third-party guarantor.
Loans in the USA have interest rates between 8% and 19%, while home country loans often have rates around 10.25%, potentially making them a more cost-effective option.
Education Loan for USA
In order to apply for i20 you need to furnish bank balance proof of the last 24 hours / 1 day. However, if you have an Education Loan sanction letter, you do not show this balance for 24 hours.
Hence you can straight away apply for i20 & speed up the VISA process. Both – Secured & Unsecured – loans are accepted for higher studies in the USA.
Pursue Your Dream Degree in USA
The USA is a top study destination for international students, offering prestigious universities and a wealth of opportunities. In the 2021/2022 academic year, over 199,000 Indian students chose the USA for higher education, reflecting its immense popularity.
One key reason for this preference is the global career prospects available after earning a degree. Tuition fees vary across programs, with international graduate students paying an average of USD 39,000 annually. Education loans are an ideal solution to cover tuition, living costs, and other expenses. Moreover, these loans also serve as valid proof of funds for US student visas, simplifying the application process.
Education Loan Eligibility for USA
To obtain an abroad education loan in USA as an international student, there are specific conditions/eligibility criteria that need to be fulfilled.
These consist of:
Good academic record.
Collateral for secured loans.
Co-applicant with sufficient income for unsecured loans.
Acceptance into a recognized American institution for a full-time program.
Documents Required for Education Loan USA
Apart from meeting the eligibility criteria, students must ensure they have all the necessary documents ready before applying for an education loan to study in the USA. The document checklist can be extensive, but a personalized checklist can help streamline the process and speed up submission.
Commonly required documents for securing a study abroad loan for the USA include:
Loan application form
Passport-size photographs
KYC documents of the applicant
Standardized test scores (GMAT or GRE)
Academic transcripts (School and Bachelor’s)
Frequently Asked Questions
Candidates can get a UBI education loan without an account, even if parents are deceased, with simple EMI calculations and no prepayment fees.
To secure an education loan for the USA, you need an acceptance letter from a U.S. institution and a valid student visa. Most lenders require a cosigner who is a U.S. permanent resident with good credit and at least two years of residency.
Interest rates are based on benchmarks like the Prime Rate or SOFR, plus a margin determined by the borrower’s or cosigner’s creditworthiness.
Repayment options include full deferral, interest-only payments during studies, or immediate repayment. Terms typically range from 10 to 15 years.
Yes, unsecured loans are available and rely on creditworthiness. These may require a cosigner or a third-party guarantor.
Loans in the USA have interest rates between 8% and 19%, while home country loans often have rates around 10.25%, potentially making them a more cost-effective option.
Frequently Asked Questions
Candidates can get a Canada education loan without an account, even if parents are deceased, with simple EMI calculations and no prepayment fees.
To secure an education loan for the USA, you need an acceptance letter from a U.S. institution and a valid student visa. Most lenders require a cosigner who is a U.S. permanent resident with good credit and at least two years of residency.
Interest rates are based on benchmarks like the Prime Rate or SOFR, plus a margin determined by the borrower’s or cosigner’s creditworthiness.
Repayment options include full deferral, interest-only payments during studies, or immediate repayment. Terms typically range from 10 to 15 years.
Yes, unsecured loans are available and rely on creditworthiness. These may require a cosigner or a third-party guarantor.
Loans in the USA have interest rates between 8% and 19%, while home country loans often have rates around 10.25%, potentially making them a more cost-effective option.