Education Loan to Study in USA

HDFC Bank Education Loans for Foreign Education

1. When considering financing options for studying in the USA, HDFC Bank provides comprehensive education loans tailored to meet the diverse needs of students. HDFC Bank ensures that students have access to the necessary financial support to pursue their academic aspirations abroad. 
   

1. HDFC Credila education loan scheme provides education loans for higher education abroad with competitive interest rates. The interest rate for education loans ranges from 9.75% to 10.75%. The Credila education loan covers 100% of education expenses including tuition fees, living expenses, visas, and study materials. The loan scheme covers courses in more than 64 countries. The loan is provided for both undergraduate and postgraduate courses abroad. The loan tenure is a maximum of 15 years. 

1. HDFC Credila education loan offers income tax benefits under Section 80E of the Income Tax Act. 

1. HDFC Credila offers secured and unsecured education loans. There is no maximum loan amount limit set for education loans. 
2. Whether pursuing a Master's degree, MBA, MBBS/MD, executive management courses, or any other program, HDFC Bank's education loans cater to a wide range of courses across various universities in the USA. 

SBI Student Loan Scheme

1.  For students aspiring to pursue studies abroad with expenses exceeding Rs.7.50 lakhs, the State Bank of India (SBI) offers the Global Ed-Vantage education loan. This loan is exclusively designed for full-time regular courses at foreign colleges or universities. The maximum loan amount limit is set at Rs.3 crores.
2. The interest rate for the SBI Global ED-Vantage scheme ranges from 8.65% to 9.15%. There is a margin of 15% for loan amounts above Rs.4 lakhs for studies abroad.  
3. The key features of the SBI Global Ed-Vantage loan include a faster online application process, attractive interest rates, and loan amounts of up to Rs.1.50 crores. Repayment is facilitated through equated monthly instalments (EMI) for up to 15 years, providing flexibility to borrowers.
4. Also, SBI offers early approval of loans before obtaining the i20/Visa, streamlining the student process. Furthermore, borrowers can benefit from tax deductions under section 80(E) of the Income Tax Act. The loan covers various expenses, including college/school/hostel fees, examination/library/laboratory fees, travel expenses, purchase of books/equipment/computers, and other related expenses essential for course completion.
   
5. Tangible collateral security is required for the loan, which can include collateral offered by the parent or guardian. SBI Global Ed-Vantage empowers students to pursue their dreams of studying abroad with comprehensive financial support and convenient repayment options.

Bank of Baroda Scholar Loan

1. Bank of Baroda offers specific loan products, known as Baroda Scholar Loans, designed to support students pursuing higher education in the USA. These loans cater to various approved courses, including MBA, MCA, MS, and others that contribute to job creation.
2. The interest rate for education loans by the Bank of Baroda ranges from 8.70% to 10.50%. 
3. Eligibility criteria require students to secure admission into the designated institute and course. The loan amount varies based on the specific program and institute, with the maximum limit providing substantial financial assistance.
4. Noteworthy features include the refund of 1% processing charge for loans exceeding Rs.7.50 lakhs, no processing charges for loans up to this amount, and no requirement of security for loans below Rs.7.50 lakhs. There is also no margin for amounts up to Rs.4 lakhs.
5. Additionally, borrowers receive complimentary services like a free debit card for added convenience. With streamlined documentation and comprehensive customer support, Bank of Baroda's Baroda Scholar Loans ensures a smooth and accessible financing solution for students pursuing their academic aspirations in the USA. 

Union Bank of India Education Loan

1. The Union Education Premier Abroad scheme offers a special Union education loan tailored for Indian nationals pursuing full-time postgraduate courses in premium universities abroad.
2. The interest rate ranges from EBLR+0.25% to EBLR+0.50%. 
3. To be eligible, students must have secured admission through recognized entrance examinations conducted by approved universities or institutions. The loan covers various expenses, including tuition fees, hostel/mess charges, examination/library/laboratory fees, insurance premiums, travel expenses, purchase of books/equipment, and other essential course-related expenses.
4. The loan amount ranges from a minimum of Rs.7.50 lakhs to a maximum of Rs.1.5 crores. The margin requirement varies based on the loan amount, with collateral security required for loans exceeding Rs.40 lakhs.
5. The repayment period extends up to 15 years, including the moratorium period. The co-applicant/guarantor must be either one of the parents or the spouse, with their income/means not considered during loan sanctioning. Term life insurance is mandatory, with the policy assigned in favour of the bank. The loan is disbursed directly to the institute from the branch nearest to the student's domicile, ensuring convenience and transparency throughout the process.

PNB Udaan

1. The PNB Udaan Education Loan Scheme aims to offer financial support to talented students aspiring to pursue higher education abroad. It covers a wide range of expenses such as tuition fees, examination fees, hostel fees, purchase of books, equipment, and other essential costs required for completing the course.
2. The interest rate ranges from 9.80% to 9.25%. The scheme is designed to assist students enrolled in job-oriented professional/technical courses, post-graduation programs like MCA, MBA, MS, and courses recognized under various Government Subsidy Schemes.
3. Additionally, it extends support to diploma and certificate courses, subject to certain conditions, backed by liquid security. With a repayment tenure up to 15 years, the scheme seeks to facilitate students in fulfilling their educational aspirations with ease. 

Documents Required to Apply for an Education Loan to Study in the USA

1. Duly filled application form
2. Address proof
3. Identity proof
4. Passport size photographs
5. Income proof
6. Copy of your scholarship letter
7. School and university marksheet
8. Foreign exchange permit copy
9. Admission letter
10. List of other expenses
11. Submission of a brief statement of their assets and liabilities by the co-borrower to the bank
12. Other financial supporting documents.

Eligibility Criteria to Apply for Student Loan in USA

Whether or not you are qualified to qualify for the loan should be your top priority. The general requirements for eligibility that all banks adhere to are:  

1. The candidate needs to be a citizen of India.  

1. The candidate must have a solid academic background.  

1. The candidate needs to be applying to be admitted to a technical or professional programme. Lending money for career-focused courses is always preferred by banks.  

1. The candidate needs to have obtained admission to a foreign university beforehand.  

1. The borrower must be over the age of 18, or else the loan must be taken out by their parents. 

Education Loans from NBFCs to Study in the USA

Non-banking financial companies (NBFCs) provide an alternative source of student loans for those aspiring to study in the USA. In addition to nationalized banks, NBFCs offer comprehensive funding options, covering full tuition fees. While collateral is typically required for loan amounts exceeding Rs.7.5 lakhs, NBFCs also extend non-collateral loans to students. Some notable NBFC options include: 

1. 
   International Student Loan Program (ISLP): Designed specifically for international students studying in the US, ISLP allows borrowers to access loans starting from $1500 with extended repayment periods of up to 25 years. These loans cover tuition fees and various other expenses. 
2. Global Student Loan Corporation (GSLC): GSLC provides loans to international students pursuing higher education in the US without requiring a co-signer. This option provides additional flexibility and accessibility to funding for international students. 

In addition to NBFCs, students can explore funding options from financial services providers such as Avance Financials, Leap Finance, and US-based banks and lenders like Discover, Citizen Bank, and Wells Fargo. 

Selecting the Right Bank for a Study Loan in the USA

When selecting a bank for a study loan in the USA, it is crucial to compare various banks based on key parameters to ensure you make an informed decision. Here is a checklist to guide your comparison: 

1. Interest Rate: Compare the interest rates offered by different banks to find the most competitive option. 
2. Coverage of Costs: Evaluate the different elements covered by the loan, such as tuition fees, living expenses, and the cost of books and materials. 
3. Processing Fee: Consider the processing fees charged by each bank, as this can impact the overall cost of the loan. 
4. Income Tax Exemptions: Check if the loan offers any income tax exemptions or benefits, which can help reduce your financial burden. 

1. Loan Margin: Understand the loan margin required by each bank, as this determines the percentage of the total cost you need to finance independently. 
2. Loan Processing Time: Assess the processing time for loan applications, ensuring it aligns with your timeline for securing funding. 
3. Prepayment Terms: Look into the prepayment terms and conditions of each loan, including any penalties or fees for early repayment. 

Considerations Before Applying for a US Education Loan

Before applying for a student loan, it is essential to consider several factors to ensure a smooth application process and successful financing. These factors include: 

1. Course and University Selection : Finalize the course and university you wish to pursue, considering factors such as reputation, accreditation, and career prospects. 
2. Financial Planning : Estimate the total amount of funding you'll need for your education, including tuition, living expenses, and other costs. 
3. Document Preparation : Compile a list of required documents for the loan application, including academic transcripts, proof of admission, and financial statements. 
4. Guarantor Identification : If a guarantor is required for the loan, identify a suitable individual who meets the bank's criteria. 
5. Timely Application : Apply for the loan well in advance, ideally at least three months before your visa interview date, to ensure timely processing. 
6. Disbursement Timing : Estimate the expected disbursement timeline for the loan, considering factors such as processing time and academic session start dates. 

Costs Covered by Education Loan for Studying in the USA

When considering a loan scheme, it's important to check which expenses, beyond tuition fees, are covered. Nowadays, various loan schemes cater to a range of costs besides tuition. Some of the expenses typically covered by these loans include: 

1. Fees for both the hostel and the college 

1. Fees for exams, libraries, and laboratories 

1. Purchasing of instruments, equipment, and books 

1. Building fund, refundable deposits, and caution deposit 

1. travel costs 

1. rates for the student's insurance, if any 

1. Purchasing a laptop, should it be necessary for the course; extra costs for study tours, projects, or theses. 

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