One of the most sought-after destinations to study abroad, the USA has top-tier institutions that deliver quality education along with beneficial career opportunities. Study cost in the USA is slightly on the higher side so funding education can be challenging but it isn’t an impossible task. With the right guidance and well-researched loan decision, the loan applicant can get a successful loan sanction letter.
So, if you are a loan applicant in search of an education loan to study in the USA, this article has got you covered with all the necessary information. Keep reading to know the details.
Types of Education Loans to Study in the USA
1. Secured Overseas Education Loans
Commonly known as loans without collateral, in an unsecured education loan, the applicant does not require the security of assets. The loan is granted based on the financial profile and CIBIL score of the loan applicant and co-applicant.
2. Unsecured Education Loans
Commonly known as loans without collateral, in an unsecured education loan, the applicant does not require the security of assets. The loan is granted based on the financial profile and CIBIL score of the loan applicant and co-applicant.
Now that we know the types of loans, let’s discuss the types of financial institutions that provide these kinds of loans.
Financial Institutions that Provide Education Loans to Study in the USA
Different financial institutions have different foreign education loan eligibility criteria. Let’s understand it in detail.
1. Nationalized Banks
Nationalized banks can be your go-to option if you require a high loan amount. These banks provide secured loan amounts up to ₹ 1.5 cr and more, depending on the requirements and security pledged by the applicant. Comparatively, the rate of interest is lower for nationalized banks. Students can proceed with an education loan after getting a letter of acceptance from the USA institution.
Leading Nationalized Banks Providing Education Loans to Study in the USA
- State Bank of India
- Bank of Baroda
- Bank of India
- Union Bank of India (Provides both secured and unsecured education loans)
2. Private Banks
Private Banks provide both secured and unsecured loan options for students. However unsecured loan option is mostly available for students of STEM courses. To study in the USA, a secured loan can be provided for up to ₹ 75 – 1 Cr and an unsecured loan for up to ₹ 50 lakhs.
Leading Private Banks Providing Education Loans to Study in the USA
- ICICI Bank
- Axis Bank
- IDFC First Bank
3. NBFCs
Non-Banking Financial Companies popularly known as NBFCs are a preferred option for students as NBFCs provide collateral-free loans of up to Rs 50 lakhs to study in the USA. The rate of interest is slightly higher for NBFCs, but the best part is that they provide 100% funding and pre-admission loan.
Leading NBFCs Providing Education Loans to Study in the USA
- HDFC Credila
- Avanse
- Incred
- Auxilo
- Credenc
4. International Lenders
International lenders specifically provide education loans for students studying in the US as they disburse the loan amount in US dollars. For international lenders, students can get loan sanctions for institutions that international lenders support and their GRE/ IELTS/ TOEFL scores. The loan process is quick and easy. A loan amount of up to $100K can be provided based on the student’s profile and eligibility. No Co-signer or Collateral is needed.
Leading International Lenders Providing Education Loans to Study in the USA
- MPower Finance
- Prodigy Finance
- Leap Finance
Approaching the right financial institution can get you successful loan disbursement and the right amount of money to fund your education in the USA. So, if you are looking for collateral or collateral free education loan for abroad, we recommend you visit an overseas education loan advisor and get loan application assistance.
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