Education Loan Options for Indian Students to Study in the USA

Overseas education loan typically covers tuition fees, living costs, airfare charges, and others that are connected. IDP Education collaborates with top Indian banks and financial institutions and presents easily available funding options specially tailored for those who wish to study in America but are short of funds.

• Union Bank of India Services Limited

  • Secured Loans: ₹1.5 Crore maximum

  • Unsecured Loans: ₹40 Lakhs (offered to top colleges abroad, Master's programme only)

  • Interest Rate: Starting at 9.25% per annum

  • Margin Requirement: 15%

  • Repayment Term: Maximum 15 years

  • Features:

    • Covers tuition and any other academic charges

    • Internet tracking and program

    • Tax benefits under Section 80E

• Poonawalla Fincorp Limited

  • Secured Loans: ₹3 Crore and Below

  • Unsecured Loans: ₹1 Crore or Less

  • Interest Rates: From 10.25% per annum

  • Margin Requirement: No margin money is required

  • Repayment Term: Up to 15 years

  • Features:

    • Digital only loan process

    • Covers total education expenses

    • Section 80E Tax benefit provisions

• Avanse Financial Services

  • Secured Loans: 100% covers tuition fee

  • Unsecured Loans: ₹1 to ₹1 Crore

  • Interest Rates: 10.5% to 14.25% per annum

  • Margin Requirement: No margin money is required

  • Repayment Term: Up to 17 years

  • Features:

    • Internet application and tracking

    • All-inclusive coverage such as tuition and related expenses

• Credila (HDFC Ltd.)

  • Secured Loans: 100% Cost Coverage

  • Unsecured Loans: ₹75 Lakhs Maximum

  • Interest Rates: Starting with 9.75% per annum

  • Margin Requirement:

    • No provision for loan of up ₹4 Lakhs

    • 5%-15% margin for loans above ₹4 Lakhs

  • Features:

    • Minimal processing fees

    • Includes tuition and related costs

    • Section 80Tax benefit under section 80

• ICICI Bank iSMART Education Loans

  • Secured Loans: ₹2 Crore or Less

  • Unsecured Loans: ₹1- ₹1 Crore (some institutes)

  • Interest Rates: 9.5% to 14.25% per annum

  • Margin Requirement:

    • Zero EMI for loans of up to ₹4 Lakhs

    • 5%-15% over ₹4 Lakhs loan amount

  • Features:

    • Attractive interest rates

    • Digital processing and online tracking

    • Tax benefits under Section 80E

• State Bank of India (SBI)

  • Secured Loans: 100% covers education costs

  • Unsecure Loans: ₹50 Lakhs (some of the colleges)

  • Interest Rates: Starting at 5% for loans above ₹4 Lakhs

  • Margin Requirement:

    • No margin for loans of up to ₹4 Lakhs

    • 5%-15% margin for loans above ₹4 Lakhs

  • Features:

    • Complete coverage of tuition and living costs

    • Section 80E Tax benefit provisions

    • Electronic application procedure

• Enrollment in a recognized American educational institution

• Demonstration of intellectual talent

• Co-applicant (typically a parent or guardian) may be required

• Collateral required to get secured loans

• Creditworthiness determination for unsecured loans

• Research and Compare: Compare loan products based on your unique needs.

• Check Your Eligibility: Ensure that you are eligible.

• Documentation: Gathering proper documents such as evidence of identity, admission letters, fee schedules, academic documents, and financial statements.

• Application Submission: Make online applications through IDP’s website or via the bank’s online portal.

• Loan Approval: Await bank's credit check and loan approval.

• Disbursement: The funds will be disbursed to the institution upon approval, as per loan terms.

• Professional assistance when applying for a loan

• Partnership with well-established banks and NBFCs

• Section 80E of Income Tax Act: Tax Benefits

• Holistic financial solutions specifically tailored for overseas education