Indian students can get a loan to help them afford to study in the United States, despite the fact that tuition there is expensive. Choosing the right option is crucial, whether you're considering secured loans with collateral or unsecured loans without collateral. You'll find everything you need to know about study loans in this blog post, including how to apply, what documents are required, and the fees. Find the best loan option with this guide, and you'll be one step closer to achieving your goal of studying in the United States.
Table of Contents
There are considerably 2 types of study loan for USA - secured and unsecured education loans. Let's understand each of them one by one.
To gain more insights on secured and unsecured education loan in USA for Indian students, move on to the upcoming sections!
Collateral security is a type of asset or property that has to be pledged to a lender as a guarantee to grant an education loan. Here, the assets provide a sense of security to the lender that the borrower will repay the loan amount in the future. Moreover, the moneylender holds the authority to seize your assets and property in case of uncertainty in money settlement or exceeding the repayment tenure.
Let's understand the various collateral types accepted by the lender:
You can pledge any of these 3 collateral assets to the money lender for a secured education loan approval. These are -
POINTS TO REMEMBER: |
---|
Some of the points borrowers should note when pledging intangible assets to the lender-
|
Now, the question that might arise is why secured loans with collateral? So, we've prepared the next section covering attributes of the same!
Suggested: Non Collateral Education Loan for Abroad Studies
Thus, let's get detailed insights on banks providing secured collateral-based education loan in USA for Indian students with their interest rates.
Want a Quick and Hassle-Free Help on Education Loan in USA?
Here's a table below that demonstrates a few banks concerning student loans for studying in the USA:
LENDERS NAME | PARAMETERS OFFERED |
---|---|
HDFC Bank |
|
Axis Bank |
|
State Bank of India |
|
Bank Of Baroda |
|
Moratorium Period: A specific time period during a loan tenure when the students don't need to make regular loan repayments. Further, let's understand the benefits provided by these banks to get US education loan with collateral security.
Suggested: Student Loan for UK
Taking a secured collateral-based US education loan can offer various benefits compared to an unsecured one. Here are some of them:
Moreover, you should note that the collateral you provide to the lender is at risk if you're unable to repay the loan amount within the tenure. Delaying in payment or defaulting on a secured loan might lead to seizing or selling your asset to recover the outstanding debt.
So, if you're unsure of a US education loan with security, there is another option for an unsecured study loan. You don't need to go anywhere just stay on this blog and scroll a bit since the following section covers the same.
Non-collateral education loans don't require any assets as security since unsecured loans usually range between INR 4 lakh to 7.5 lahks. Thus, they only mandate the signature of a co-applicant, parent, guardian or a third-party guarantee.
Let's understand why to choose an unsecured education loan to study in the USA:
The significant traits and merits of an unsecured education loan are mentioned below:
There is always a negative side to everything. Thus, non-collateral education loans come with some drawbacks as well. Let's go through the following section!
Here are some of the disadvantages of unsecured education loans for the USA:
Government banks like SBI and BOB don't offer more than 7.5 Lakhs loan amounts without collateral security. On the other hand, there are higher interest charges and generally offer shorter repayment loan periods compared to collateral-based secured education loans.
Meanwhile, let us take you to the next section covering various loan providers, including private, public, NBFCs, and international lenders offering education loan in USA for Indian students.
Suggested: Education Loan for Abroad Studies
The different lenders that provide study loans without pledging any collateral for the USA are listed below:
*NBFC: Non-banking Financial Corporation
Thus, the table below provides insight into education loans for study in the USA without collateral.
INDIAN PUBLIC AND PRIVATE SECTOR BANKS | |
---|---|
LENDERS NAME | THEIR OFFERINGS |
SBI Bank |
|
UBI Bank |
|
Axis Bank |
|
ICICI Bank |
|
IDFC First Bank |
|
INDIAN NON-BANKING FINANCIAL CORPORATION | |
HDFC Credilla |
|
Avanse Financial Services |
|
Auxillo |
|
Leap Finance |
|
STUDY LOAN WITHOUT COLLATERAL AND CO-APPLICANT | |
MPOWER Financing |
|
MPOWER Financing |
|
USA BASED LENDERS | |
Discover, USA |
|
Wells Fargo, USA |
|
So, you must be aware of the lenders providing education loans to study in the USA for Indian students. But how to choose which bank or financial corporation is the most appropriate? The upcoming section elaborates on the same. Check it out!
To pick the most suitable bank for an education loan to study in the USA, one must remember certain points. Evaluating and comparing with other banks could help you make an informed decision. See the points below:
Check these variables, compare them with several banks, and then decide on which loan you want to apply. So, before moving on to how to apply for education loan to study in the USA, let's understand a few points you have to review before applying for a US student loan.
Below are some points that would be helpful for Indian students to review prior to applying for a US study loan:
List of the expenses covered under US student loan:
Further, let's learn more about the eligibility criteria set by the banks for US education loan for Indian students.
The eligibility to grant an education loan varies from bank to bank. Generally, nationalized banks have stricter policies compared to NBFCs since they offer loans with lower interest.
Let us learn some usual eligibility criteria to apply for a US education loan:
Let's go through the papers required to process the US study loan.
Suggested: Bank of Baroda Education Loan
Every bank to grants an education loan demands various paperwork and documents for a smooth and successful operation. Then, they verify every detail and start processing the education loan to study in the USA.
DOCUMENTS REQUIRED | |
---|---|
Loan Application Form | Fully Completed and Signed |
Loan Application Form |
|
Photo IDs |
|
Residence Proof |
|
Academic Documents and Mark sheets of Students |
|
Proof of Admission in US University |
|
Bank Statements of Co-applicant |
|
Income Proof of Co-applicant |
|
If Collateral Asset (Flat, House, Non-agriculture Land) |
|
With all the knowledge, let's move on to the steps of how to get education loan to study in the USA.
Before applying for an education loan, the applicant must be aware of the overall amount required to cover tuition fees and other expenditures. Finalize the course and the institution accordingly to make a final estimation. Moreover, make sure to apply for the loan 3 months before the scheduled visa interview date.
Let's understand how to get study loans for USA from these steps:
Hopefully, we've answered everything here, in case you've more questions, feel free to keep in touch with financial experts at Gradding.com.
In conclusion, receiving a education loan in USA from a bank or lender is not the end of the procedure. After leaving the country, students have to achieve good grades and maintain their scores throughout the course. Besides, taking a loan from a trusted financial corporation is necessary and it requires a lot of research. New to this? No need to worry, taking assistance from experienced counselors will get quick approval on educational loans.
We are available in :
BangaloreAhmedabadJaipurHyderabadKeralaPuneChandigarhMumbaiGurgaonChennaiKolkataTrivandrumNoidaKochiCalicutKottayamKollamThrissurIndoreUdaipurdisclaimer:logos and other registered trademarks of universities used on this platform are held by their respective owners. Gradding does not claim ownership or association on them, and their use is purely for informational and illustrative purposes.