Education loan abroad is available to students who wish to pursue their higher studies. The U.S. is among the top five destinations which attracts Indian students and professionals alike. American country being the technology master and the finest in class for education, offers top-notch STEM courses. If you are discombobulated about comparison between Indian banks and USA banks for education loan, few points below will help you clarify your queries.
Following table is comparing Indian Banks with USA Banks for education loan to make things easier for you.
| Point of Comparison | Indian Banks | USA Banks |
| Type of loan | All private and public sector banks, along with NBFCs provide overseas education loan to Indian citizens. The type of loan is called Education Loan. | Education loan in USA is non collateral and is called private student loans.
The loans have variable Return on Investment. |
| Need for co-signer | Banks and NBFCs in India do not necessarily demand US co-signer. Overseas education loan can be had with Indian co-signer as well with Avanse and Credila. | Education loan in USA can be had only if you have a U.S. citizen or green card holder as a co-signer with good credit history and residency of at least 2 years. |
| Rate of Interest | The rate of interest for public banks is between 9.05% to 11%, while that of private banks and NBFCs is 11.00 – 13.00%. | For getting education loan in USA, the rate of interest usually lies between 3.00 – 7.00 % in USD. |
| Loan Amount | Students who are looking for foreign education loan can get loan limited by 80% – 100% of
collateral or Maximum 100% cost of study from the public sector banks. As far as private banks and NBFCs are concerned the loan amount is upto INR 35/45 Lakhs unsecured and unlimited secured loans. |
For US education loan in their country, you get loan of Upto I 20 Value. The loan is generally for a period of 1 year and we have to look at the next year loan with a new application to the bank. |
| Point Of Service
(Efforts Involved) |
You must go to the branch near you and complete the process or,
You can contact EduLoans, which provides digital services where you need not step out of your home. |
For applying for education loan in USA from a U.S. bank, you can simply apply and complete the process online or,
You may get in touch with EduLoans for quick and easy education loan for study abroad processes. |
| Processing Fees
Chargeable & Upfront Charges |
Public sector banks: INR 10,000 +GST (Refundable/Non Refundable) + Optional Insurance+ Mortgage
Fees – 0.2% + Legal Verification +Valuation
Private Banks and NBFCs: 1.00 % Fixed (Non Refundable) + Insurance (Non Collateral) |
1% +GST |
| 80 E Tax Benefit | Yes to all | Not applicable for education loan in USA |
Benefits of applying Education loan abroad EduLoans
EduLoans can be your one-point solution for education loan in USA or with Indian banks and NBFCs. We help you get the most flexible global / local interest rates, processing fees and other incidental expenses. Additionally, EduLoans also ensure that you get the least remittance / forex charges from your loan provider.