Education Loan for MS in the USA: Everything Indian Students Need to Know

There are two types of education loans available to those studying for an MS in the USA.

Secured Education Loans

Secured education loans mean you will have to pledge an asset before you can obtain the loan; this is to ensure that the bank has assets at its disposal to recover the amount borrowed should you fail to pay. The assets can be residential or commercial property or even fixed deposits, like immovable assets. Collateral can also be LIC insurance policies or even other non-agricultural mortgaged lands. One of the biggest benefits of secured loans is that the lender provides an immediate interest rate along with the huge sum of loans an individual might require. 

Benefits

1. Higher loan limits.

2. Lower interest rates.

3. Flexible repayment options.

Unsecured Education Loans

An unsecured education loan does not require collateral to guarantee the loan. An unsecured loan is taken based on the consignee's income and their credit score, which is the CIBIL score. Generally these kinds of loans would usually charge you higher rates of interest since they involve a slightly higher risk for lenders. However, some private banks and non-banking financial companies have become popular among people who want to secure a loan.

Benefits

1. No need for collateral.

2. Faster processing times.

3. Suitable for students without access to substantial assets.

Top Indian Banks Offering Education Loans

There are numerous banks and financial institutions in India that provide loans to students for their admission requirements. Check the banks below to find your favourite one:

Note: Loan Calculator

Each and every education loan has some basic eligibility criteria a borrower has to follow in order to become a potential candidate for the loan. The criteria however differ for bank to bank

The below are some of the general requirements.

Academic Requirements

Admission to a recognised university in the USA.

Strong academic record.

Co-Applicant Details

Co-applicant with a stable income.

Good CIBIL score (700 or above for private banks).

Collateral (For Secured Loans)

Property documents or fixed deposit certificates. 

A clean and simple loan application must include the following documents:

1. ID proof: Aadhaar card, passport, or PAN card.
2. Admission letter: Proof of admission from the university you graduated from.
3. Academic Records: Marksheets and certificates.
4. Income paper: Salary slip or tax income report of a co-applicant.
5. Collateral Documents (if applicable): Property papers or fixed deposit certificates.

• Research Options: Consider secured and unsecured loans from different banks.
• Check Eligibility: Check if you meet the lender's academic and financial requirements.
• Gather the Credentials: Collect the required documentation, including ID proof and admission letters.
• Application: Apply online or visit the bank branch.
• Approval: After processing your application, approval of the loan will be granted.
• Disbursement: Once approved, the university will receive the funds.

• Keep Your Credit Score High: A score exceeding 700 just increases your chances of approval.
• Select the Right Co-Applicant: Pick one with a steady income and credit history.
• Make Sure That All Information Is Correct: All areas should contain relevant information.
• Construct a Strong Academic Profile: A steady academic career adds weight to your claims.

NxtWave Abroad is your one-stop solution for dealing with everything concerning studying abroad. Be it helping you study for competitive exams like the GRE or helping you with personalised counselling on education loans, NxtWave Abroad provides assistance regarding appropriate resources at every step. Their knowledge regarding matching students with financial aid solutions makes them the best partner for Indian students wanting to study in the USA.

Getting an MS degree in the USA is a life-changing decision, but making sure that you can afford one requires strategising. Just realising what types of loans there are, which the top Indian lenders offer them, and how to go about making applications will have you well on your way to seeing your dreams come true. So, platforms like NxtWave Abroad are presented to expedite and kindle your journey so you can realise your academic and career ambitions.

1. How do I Apply for an Education Loan for MS in the USA?

To apply for an education loan for MS in the USA, we suggest you research more about your various potential providers, and make sure to take note of their eligibility requirements, gather the required documents. Then you can either apply online or at a bank branch to have your loan application reviewed for approval.

2. What are the Eligibility Criteria for all Education Loans for MS for Universities in the USA?

Criteria for eligibility usually include an offer of admission to a recognized University, an academic record that's above average, and a co-applicant who earns a steady income. For the case of secured loans, collateral will be required, and this may be a property or fixed deposits.

3. Is it Possible to Avail of an Unsecured Education Loan for MS in the USA?

Definitely, various private banks and NBFCs grant unsecured education loans for MS in the USA. The requisite condition for availing of such a loan is a co-applicant whose creditworthiness and financial stability can be assessed rather than requiring tangible security.

4. What is the Maximum Loan Amount I can Get for Studying in the USA?

The maximum loan amount does tend to vary according to different lenders, but typically, the loans are advanced in the range having a minimum of ₹20 lakh and a maximum limit set at around ₹80 lakh, depending on the type of loan and the bank being applied to or NBFC.

5. Are there Education Loans for MS in the USA Without Collaterals? 

Yes, unsecured or Non-Collateral-Based Loans are also available for pursuing an MS in the USA.