Many Indian students desire to study in the United States of America. Aspirants must arrange for a large sum of money, as studying and living in the United States is highly costly.
Applying for an education loan is the greatest method to solve your financial problems. Many Indian banks are now providing education loans to Indian students who want to study in the US. International student loans may be available to students with a co-signer from the United States.
The following are some of the education loan schemes offered by Indian banks for studying abroad:
HDFC Bank Education Loan for Foreign Education: Only Indian students who intend to study abroad are eligible for this loan program. This scheme allows you to borrow up to Rs.45 lakhs at low-interest rates. The amount is approved before admittance, and borrowers can take advantage of tax benefits.
SBI Student Loan Scheme: This educational loan program is available to Indian students who have been accepted into a program in India or abroad. It offers low-interest loans up to Rs.20 lakhs. Borrowers must only provide collateral if their loan exceeds Rs.7.5 lakhs. The loan is repayable over 15 years. The 12-month repayment period begins once the course is completed.
BI Global ED-VANTAGE - Education Loan for the USA: For Indian students seeking an overseas education loan in the United States, the State Bank of India offers Global Ed-Vantage. A student can receive financial aid ranging from Rs.20 lakhs to Rs.1.5 crore under this scheme, which can be returned over 15 years. The repayment period begins six months after the course ends. To qualify for this loan, all borrowers must supply collateral. SBI considers collateral to be the primary source of security. The parents' profile is also unimportant, and they have a set interest rate for all applicants interested in studying any course in the United States with no bias.
Bank of Baroda Scholar Loan: Bank of Baroda offers this education loan to Indians who want to study outside India at a low-interest rate. It also provides funding to any institute that is not included in either of the lists. Lists A and B are the two lists of institutes under the scheme. People who apply to any of the institutes listed in both lists are eligible for a loan.
The maximum loan amount granted by the scheme for institutes in List A is Rs.80 lakh, and the maximum loan amount offered by the scheme for institutes in List B is Rs.60 lakh. A loan of up to Rs.7.5 lakh must be repaid within 120 months, and a loan of more than Rs.7.5 lakh must be repaid within 180 months.
Union Bank of India Education Loan: The Union Bank of India offers this education loan scheme to assist students in pursuing their studies in India and abroad. There is no maximum loan amount that a student seeking to study abroad can obtain for international education. The maximum loan amount for NRIs is between Rs.20 lakh and Rs.30 lakh. The repayment period is set at 15 years. Only if the loan amount exceeds, Rs.4 lakh does a 15% margin apply to international schooling. Collateral is necessary if the loan amount exceeds Rs.7.5 lakhs. Students taking diploma courses at foreign colleges are not eligible for this loan.
PNB Udaan: Punjab National Bank offers this international education finance scheme. Outside India, the loan can be utilized to pursue a bachelor's or master's degree. It can also be utilized to study specialized degree/diploma courses offered by CPAs in the US, CIMA in London, and other organizations. The borrower's requirements determine the quantity of the loan. This arrangement allows for the repayment of loans over 15 years. One year after the course ends, the repayment period begins. The margin granted for loans is 15% if the loan amount exceeds Rs.4 lakh. You must furnish collateral if the loan amount exceeds Rs.7.5 lakh.
Canara Bank: Canara Bank sponsors the IBA Model Education Loan Scheme, an education loan that assists Indians in pursuing higher education in India and abroad. The bank offers a 15 percent margin on overseas education loans, with a repayment period of up to 15 years. The payback holiday is equal to the length of the course plus one year. The loan can be used to complete a graduation or post-graduation program. For loans exceeding Rs.7.5 lakh, the borrower would be required to furnish security.
BOI Star Education Loan: Bank of India offers this loan scheme to students at attractive interest rates to assist them financially in pursuing an education in India or abroad. It can be used to pursue graduation, post-graduation, and some degree/diploma programs in the United States. It can also be used to study courses offered by CPAs in the United States, CIMA in London, and other organizations. The scheme offers a maximum loan amount of Rs.20 lakhs for international study. For overseas education loans of more than Rs.4 lakhs, the margin is 15%. For loans exceeding Rs.7.5 lakh, a security deposit would be required.
CENT Vidyarthi: For study abroad, the Central Bank of India gives a loan of up to Rs.20 lakhs. Borrowers who are female pay an interest rate of 8.5 percent, Male borrowers pay a rate of 9% with life insurance coverage included, whereas female borrowers pay a rate of 9%.
Student loans are available from non-banking financial organizations and organizations in addition to nationalized banks (NBFCs). Students can get full tuition payments from non-banking schools. Because the loan amount is usually larger than INR 7.5 Lacs, borrowers must submit collateral as security to the banks. Non-collateral loans are also available from NBFCs to students. The following are some of the NBFC options:
Credila (a subsidiary of HDFC bank)
Avanse ( A part of the DHFL group)
International Student Loan Program (ISLP)
Global Student Loan Corporation (GSLC)
In India, a few private banks offer education loans for study in the United States. The following are the most prominent among them:
Axis Bank is a leading commercial private bank in India that also provides study loans to Indian students in the United States. A maximum amount of 40 lakhs is on offer for unsecured loans with an annual interest rate typically between 11% and 13%. No margin money loans up to INR 4 lakhs. Only above it, there is a 15% margin money. No penalty for paying upfront, and the appropriate moratorium period is up to 12 months after the course is completed.
ICICI Bank: One of India's leading private banks, ICICI Bank offers secured and unsecured education loans to Indian students interested in studying in the United States. Secured loans can be taken for up to INR 1 crore, while unsecured loans can be availed for up to INR 40 lakhs. The rate of interest begins at 11.5 percent per annum. There is no margin money for loans up to INR 20 lakhs, but there is a 15% margin money for loans above INR 20 lakhs. There is no prepayment penalty, and the applicable moratorium period is up to 6 months following the course completion.
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Updated on Dec 12 ,2022
Updated on Dec 12 ,2022
Updated on Apr 05 ,2022