Education loan in USA for Indian students – How to take an education loan for an Indian student to study in USA: Many Indian students dream of studying in the United States of America as it houses some of the best universities in the world. Harvard, Yale, Stanford, MIT, John Hopkins, etc. are some other universities. To fulfill this dream one must have a lot of money because the cost of studying and living in America is very high.
Applying for an education loan is the best way to deal with financial problems. Today, there are many banks in India that offer education loans to Indian students to help them pursue courses in the US.
Students can also apply for international student loans by having someone from the US as a co-signer.
Education loans given by banks in India for studying in USA
Some of the education loan schemes offered by banks in India for studies abroad are as follows:-
- PNB Udaan
- SBI Global ED-VANTAGE Scheme
- SBI Student Loan Scheme
- HDFC Bank Education Loan for Foreign Education
- Bank of Baroda Scholar Loan
- Union Bank of India Education Loan
- BOI Star Education Loan
- Canara Bank
- CENT Vidyarthi
This education loan scheme is offered by Punjab National Bank for studying abroad. Loans can be taken for pursuing undergraduate/postgraduate courses outside India. It can also be taken to study some degree/diploma courses and courses offered by CPAs in the USA, CIMA-London, etc.
The loan amount depends on the needs of the borrower. The loans taken under this scheme can be repaid over a period of 15 years. The repayment period starts after 1 year from the end of the study. If the loan amount is more than Rs 4 lakh, then the margin offered for the loan is 15%.
SBI Global ED-VANTAGE Scheme
This education loan scheme is provided by SBI to Indian students who want to study outside India. It provides Rs 20 lakh to Rs 1.5 crore loan. The loan can be repaid within a period of 15 years. The repayment period starts 6 months after the end of the course.
SBI Student Loan Scheme
SBI Student Loan Scheme is for those Indian students who have got admission in any course in India/abroad. This is in the form of a loan at competitive interest rates subject to a maximum of Rs. 20 lakhs offers. The loan can be repaid within a period of 15 years.
The repayment period starts 12 months after the end of the course. Borrowers will have to provide collateral for availing of the loan if their loan amount exceeds Rs 7.5 lakh.
HDFC Bank Education Loan for Foreign Education
This loan scheme is provided only to those Indian students who want to study abroad. The scheme offers a maximum of Rs 45 lakhs as a loan at attractive interest rates.
Bank of Baroda Scholar Loan
Bank of Baroda Scholar Loans is offered at attractive interest rates to Indians who wish to study outside India. The scheme has 2 lists of institutions named List A and List B. It provides loans to those who apply to any of the institutions mentioned in both lists.
It provides loans to any institution. The maximum loan amount offered by the scheme for institutions mentioned in List A is Rs 80 lakh, and the maximum loan amount offered by the scheme for institutions in List B is Rs 60 lakh.
Loan amount up to Rs.8 lakh has to be repaid in a maximum period of 120 months and loan amount above this will have to be repaid in a maximum period of 180 months.
Union Bank of India Education Loan
This education loan scheme is given by the Union Bank of India to the students to complete their education in India and abroad. For overseas education, there is no maximum loan amount that can be availed by a student wishing to study abroad.
For Indians, the maximum loan amount is between Rs 20 lakh to Rs 30 lakh. And the repayment period is 15 years. The margin of 15% on overseas education is applicable only if the loan amount exceeds Rs.4 lakh.
BOI Star Education Loan
This loan scheme is given by the Bank of India at attractive interest rates to help students financially to pursue education in India and outside India. It can be availed to study undergraduate, postgraduate, and selected degree/diploma courses in the USA.
The maximum amount of loan that can be given by the scheme for overseas education is Rs 20 lakh. The margin for foreign education loans above Rs 4 lakh is 15%. Security will have to be submitted for a loan amount above Rs 7 lakh.
Canara Bank provides education loans to Indians to pursue their higher education in India and abroad. For overseas education, a margin of 15% is offered by the bank, while the repayment period is fixed for up to 15 years. The repayment leave is the course duration plus 1 year. A loan can be taken for the study of graduation or post-graduation course. The borrower will have to provide security for the loan amount exceeding Rs.7.5 lakh.
This education loan is given by the Central Bank of India. It provides education loans up to Rs 20 lakh for overseas education. The interest rate for female borrowers is 8.5% and for male borrowers, the interest rate is 9%.
This loan plan also provides life insurance cover. Loans up to Rs 7.5 lakhs have a maximum repayment period of 10 years and loans above Rs 7.5 lakhs have a maximum repayment period of 15 years. The Bank may in certain cases provide a rebate of 1% on the rate of interest during the course period.
Documents required to apply for an education loan to study in USA
- Copy of your scholarship letter
- School and university mark sheet
- Foreign exchange permit copy
- Admission letter
- List of other expenses
- Duly filled application form
- Address proof
- Identity proof
- Passport size photographs
- Income proof
- Submission of a brief statement of their assets and liabilities by the co-borrower to the bank
- Other financial supporting documents.
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