Exploring student loan options, eligibility and application tips for Indian students pursuing higher education in the USA.
Pursuing higher education in the USA comes with significant tuition and living costs. Student loans offer an effective solution, empowering students to bridge the financial gap without relying solely on savings or scholarships.
This guide explores the best student loan options, key factors to consider, and the steps to apply, helping you find the right financial support for your academic goals.
Loan options in India for students planning to study in the USA
Indian students have two main loan options when it comes to funding their education in the USA: secured and unsecured. Understanding how each works will help you choose the best option for your needs.
1. Secured loans (collateral-based)
2. Unsecured loans (no-collateral)
How to choose the right student loan?
Choosing the right student loan goes beyond interest rates. It’s about finding a financial partner that aligns with your educational goals and unique situation. Here’s how to identify the best loan:
Understand what the loan covers
A good student loan should cover all major education expenses, including:
Ensure the loan amount is sufficient to avoid juggling multiple funding sources.
Assess the lender’s flexibility
Not all loans are created equal. Look for lenders that:
Prioritize accessibility
Banks may require extensive documentation and collateral, which can complicate the process. In contrast, international lenders like MPOWER Financing simplify the process by:
Factor in added support
Some lenders go the extra mile with additional resources, such as:
Types of lenders available for Indian students studying in the USA
Type | Examples | Key features | Loan amount |
Indian banks | SBI, HDFC, PNB | Collateral-based loans with competitive interest rates | Up to ₹1.5 crore (depending on collateral) |
Indian private lenders | Nonbanking financial companies (Credila, Avanse) | Both collateral-base and no-collateral loans available | Up to ₹50 lakh (no-collateral); higher amounts with collateral |
International lenders | MPOWER Financing | No collateral or cosigner required | Up to US$100,000 (approx. ₹83 lakh) |
Key differences to consider:
Comparing top lenders for Indian students studying in the USA
When selecting a student loan, knowing the specifics of what each lender offers can help you make an informed decision. MPOWER’s no-cosigner, no-collateral loans remove significant barriers, offering a clear advantage for international students seeking accessible and transparent funding.
Here’s a comparison of top providers for Indian students:
Lender | Loan amount | Interest rate | Eligibility requirements | Key features |
MPOWER Financing | US$2,001 to US$100,000 | Starting from 9.99% (10.89% APR)* (fixed rates) | No cosigner or collateral; evaluates future earning potential | Disbursed in USD; tailored for international students; includes career and visa support services |
HDFC Bank | Up to ₹20 lakhs | Starts at ~11.40% | Requires collateral and income proof | Sanctioned before admission; tax benefits available |
SBI Global ED-VANTAGE | Up to ₹1.5 crore | Starts from 11.15% (above ₹7.5L) | Collateral required for amounts above ₹7.5 lakhs | Longer repayment period; low-interest rates for collateral-based loans |
ICICI Bank | Up to ₹1 crore | 11.40% to 14.00% | Requires cosigner or collateral | Covers tuition, GIC costs, and accommodation |
Avanse Financial Services | Varies by course | Floating rates; 1–2% processing fee | Depends on course and institution; no collateral for smaller amounts | Covers 100% of education costs, including GRE/GMAT fees |
*This rate only applies until January 31, 2025
Need help covering the full cost of your education?
Explore MPOWER Financing’s no-cosigner and no-collateral student loans to cover the costs that scholarships might not.
How to maximize the value of your student loan?
Your student loan isn’t just a financial tool; it’s an opportunity to manage your funds wisely and focus on your education without unnecessary stress. Here are actionable strategies to make every dollar count:
1. Prioritize your loan for essential expenses
Pro tip: Categorize your expenses into “needs” and “wants” to avoid overspending your loan amount.
2. Leverage discounts and student perks
3. Create a buffer fund
4. Take advantage of MPOWER’s added benefits
These benefits ensure your loan serves as a bridge to academic and professional success, not just a financial tool. Check your eligibility in less than one minute.
5. Plan early for repayment
Pro tip: Schedule regular check-ins to review your loan balance and progress toward repayment goals.
Securing the best student loan for your USA education
Choosing the right student loan is essential for making your USA education dream a reality. With a wide range of options, from secured loans offered by Indian banks to flexible, no-cosigner loans from international lenders, there’s a solution for every student.
By comparing lenders, understanding loan terms and planning strategically, your loan can go beyond financial aid – it can empower your academic and professional growth.
For students seeking no-collateral, no-cosigner options, MPOWER Financing offers tailored support to help you succeed. Take the next step today and explore how MPOWER can help you achieve your USA education goals.
MPOWER Financing Student Loan
A loan based on your future earnings
FAQs
To calculate the total cost, include:
Once you have the total cost, subtract any scholarships, savings or part-time income to determine how much you’ll need to borrow.
Many traditional lenders require a USA cosigner for education loans. However, international lenders like MPOWER Financing offer loans without a cosigner, focusing instead on your academic potential and future earning capacity.
Yes, some lenders cater specifically to STEM students due to their high earning potential after graduation. MPOWER Financing, for example, supports students in STEM programs by evaluating their future career prospects rather than requiring collateral or cosigners.
Research online, check reviews and compare key features like interest rates, loan amounts and repayment terms. Consulting your university’s financial aid office can also help you identify reliable lenders experienced in working with international students.
Reach out to your lender’s support team or your university’s financial aid office for guidance. For Indian students, international lenders like MPOWER Financing provide dedicated customer service teams experienced in addressing unique student concerns.
Ready to fund your education abroad?
Explore flexible, no-collateral student loans designed specifically for international students.
DISCLAIMER – Subject to credit approval, loans are made by Bank of Lake Mills or MPOWER Financing, PBC. Bank of Lake Mills does not have an ownership interest in MPOWER Financing. Neither MPOWER Financing nor Bank of Lake Mills is affiliated with the school you attended or are attending. Bank of Lake Mills is Member FDIC. None of the information contained in this website constitutes a recommendation, solicitation or offer by MPOWER Financing or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.
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