Overseas Education Loan to Study in the USA: A Loan Applicant’s Guide

Studying in the USA undoubtedly comes with a world-class education and bright job prospects, but it also brings along substantial costs. Tuition fees, accommodation, living expenses, and other miscellaneous costs can quickly add up. These financial aspects can often be a significant hurdle in your way to pursue higher education in this most sought-after country. However, the good news is that there are various funding options available to fulfil your aspirations to study in the USA. Among these options, taking an education loan is one of the most preferred choices. This includes secured and unsecured education loans.

So, if you are planning to take an education loan to study in the USA, then this article is for you. This detailed guide aims to provide you with all the essential information that you will need to make informed decisions about financing your higher education.

Don’t worry about your finances for studying in the USA as we have got you covered, keep reading to know more.

Perks of Taking an Education Loan for Studying in the USA

  1. Provides Financial Flexibility: Taking a student loan for USA offers the financial flexibility needed while you adjust to living in a foreign country. You won’t have to worry about your expenses as these loans not only cover the tuition fees but also living expenses, books, and other educational costs.
  2. Offers Competitive Interest Rates: Numerous financial lenders provide competitive interest rates, making education loans an affordable means of financing higher education.
  3. Grace Periods and Flexible Repayment: Many education loans come with grace periods, allowing graduates some time to secure employment before initiating repayment. Additionally, flexible repayment plans can be altered as per your varying financial situations.
  4. Build the Credit History: Responsible repayment of education loans can significantly contribute to building a positive credit history. Thus, setting a strong foundation for future financial activities.
  5. Focus on Studies: With financial concerns eased, students can concentrate on their studies without the constant stress of managing day-to-day expenses.

Now that you know the perks of taking such loans, let’s hop on to know the leading and popular financial lenders that can help you experience these perks.

Popular Banks & Financial Institutions Offering Education Loans for the USA

  • State Bank of India (SBI)
    SBI a leading Indian government bank offers education loans for international studies in the USA. This bank provides minimal processing fees, a high quantum of finance, an attractive SBI education loan interest rate for abroad and flexible repayment terms. Thus, SBI stands as a reliable choice for aspiring students heading to the USA.
  • Union Bank of India
    Union Bank of India has a dedicated education loan scheme for studying abroad. As per this ‘Premium Scheme’ students who got admission to the University that Union Bank of India approves, they can get additional perks and lower interest rates than usual. Thus, by offering financial assistance with reasonable interest rates, the bank supports students in pursuing higher education in the USA.
  • Punjab National Bank (PNB)
    PNB provides overseas education loans for students who don’t have immediate family members as guarantors. This means that the collateral security of extended family members like friends, or acquaintances will be accepted for secured loans. Moreover, the reasonable interest rates and customized repayment options, make it an accessible choice for those looking to finance their studies in the USA.
  • ICICI Bank
    Known for its comprehensive financial solutions, ICICI Bank extends education loans under its ‘ICICI Bank Education Loan for Abroad Studies’. This scheme covers tuition fees, living expenses, and other associated costs for studying in the USA. Not only this, but it also provides unsecured education loans of up to Rs 1 Crore and secured education loans for up to Rs 2 Crores. However, this scheme is only applicable to select institutes & courses.
  • Bank of Baroda (BoB)
    BoB extends instant education loans to students planning to pursue higher education in the USA and covers a wide range of courses and degree programs. The Premier Institutes, and Universities coming under the list get a competitive Bank of Baroda abroad education loan interest rate. Apart from this list, the bank also provides loans for other institutions as well.
  • Prodigy Finance
    Prodigy Finance stands out with its unique model of providing unsecured education loans by assessing future earning potential rather than credit history. It offers international student loans based on the GRE scores, including those for students attending top universities in the USA. If your university comes in the list of ‘Prodigy Schools We support”, then you can get a loan amount of up to 1 lakh dollars. The best part about taking an education loan from this lender is that you won’t have to repay the loan till you get a job.These are just a few lenders, there are many more and the list is practically never-ending. Nonetheless, since you now know a few popular ones, let’s proceed to our next segment which is the application process.

Step-by-step Overview of the Loan Application Process

  • Research about the Loan Providers.
  • Check your Eligibility & Shortlist Accordingly.
  • Gather all the Mandatory Documents.
  • Apply Online, Upload Documents, Pay the Application Fees and Submit it.
  • Wait for Loan Approval.
  • After the Loan Sanction, Sign the Loan Agreement.
  • Get your Disbursement of Funds.

And there you have it! By following these simple steps, you have your education loan to study in the USA.

This is everything that you had to know about before initiating the student loan process. As you can see, taking an education loan to study in the USA is a relatively simple process but it still requires careful planning and consideration. We are hopeful that with this detailed information, you can confidently find the right financial lender to support your academic pursuits.

However, if you still require more guidance, then you can reach out to an overseas education loan advisor. They will guide you through the process and help you get a successful loan sanction. So, be it an education loan for MS in USA or any other course approaching a suitable loan provider is vital.

Since the loan application process takes at least 30 days to process, we recommend you to take the first step now and get your loan on time so that you can begin your educational journey in the United States with financial confidence.

Good luck! See you on the other side!

Education Consultant

Education Consultant

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