The USA hosts the most number of international students at their top universities, offering top-quality education, modern academic infrastructure, and career opportunities. But studying in USA comes with many hurdles, the cost being one of them. Do you know that the US ranks among the top 10 regions for its high cost of living? Despite being one of the costliest study destinations, US universities’ applications are increasing yearly. Wondering why? Well, the credit goes to the ease of getting an education loan to study in USA.
Applying for an education loan is the best way to fund your education at the best universities in USA. In this blog, we have discussed the top loan providers and the documents required for an education loan to study in the USA.
Top Education Loan Providers to Study in USA
Many banks in India provide educational loans for USA for Indian students. However, every bank has its loan amount, interest rate, collateral documents, period etc. Below are the different types of education loan providers for the USA:
| Loan Providers | Parameters |
| State Bank of India | Loan Amount: INR 30 LakhsInterest Rate: upto 2% on current base rate Collateral Security: Above 7.5 lakhsMoratorium Period: Course completion + 1 year, or 6 months of jobRepayment Period: 1-15 years |
| HDFC Bank | Loan Amount: INR 20 lakhs Interest Rate: 9.55% to 13.28% Collateral Security: Flexibility Moratorium Period: for selected courses Repayment Period: upto 14 years |
| Punjab National Bank | Loan Amount: Varies on requirements Interest Rate: Base rate for top 100 universitiesCollateral Security: Flexible Moratorium Period: 1 yearRepayment Period: 15 years |
| Axis Bank | Loan Amount: INR 20 lakhsInterest Rate: 16.5% to 17.5%Collateral Security: above 7.5 lakhsMoratorium Period: 6-12 monthsRepayment Period: 5-15 years |
| Bank of Baroda | Loan Amount: INR 20 lakhs Interest Rate: 7.75% to 8.9% Collateral Security: Tangible above 7.5 lakhs Moratorium Period: Course completion + 1 yearRepayment Period: upto 15 years |
| IDBI Bank | Loan Amount: INR 20 lakhsInterest Rate: 8.40% to 8.75%Collateral Security: Above 7.5 lakhsMoratorium Period: 1 yearRepayment Period: 15 years |
| Canara Bank | Loan Amount: INR 20 Lakhs Interest Rate: 7.80% to 9.40%Collateral Security: Above 7.5 lakhsMoratorium Period: 6-12 months Repayment Period: 15 years |
| Wells Fargo, USA | Loan Amount: 100% costInterest Rate: 3.21% to 6.76%Moratorium Period: 6 monthsRepayment Period: 5-20 years |
Documents Required For Education Loan in USA
To ensure that you are eligible for an education loan for your studies, you need to send some set of documents to your loan providers. As every bank has its own requirements, here we have given some documents you must submit for the education loan:
- University admission offer letter
- Application form for education loan
- Cost of your education as per I-20 form
- Previous year education mark sheets
- Entrance test scorecards like GRE, GMAT, IELTS etc
- Proof of your residence and guarantee
- IT returns of co-borrower
- Identification proof of co-borrower
- Co-borrower income proof
- Copy of Passport
- A brief statement of assets or liabilities of parents or guarantee or co-borrower.
Before applying for an education loan, students must check the requirements with the loan providers. Apart from the fixed instalments or co-borrower management, choosing other prepayment options can also help pay the loan. So analyze the information above and make the best choice. Connect with the best overseas educational consultants to experience a seamless study abroad journey.
