How to Get an Education Loan to Study in the USA for Indian Students
December 17, 2025
Pragya Sharma
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The use of education loans is significant in enabling the Indian students to overcome the financial hurdle in case they aspire to pursue their studies in the United States. The tuition charges and standard of living are high so your dream of studying in the USA becomes affordable using an education loan. Education loans can provide significant financing and low-interest rates, as well as repayment periods to qualified students.
Education loans in USA are of various types. It is a matter of your academic profile, financial background, and whether you can pledge a collateral or a co-applicant to end up with the appropriate one.
Education Loans to Study in USA.
With the basic requirements, getting an education loan to study in USA will be very easy. Education loans are commonly categorised into secured and unsecured loans, depending on the ability to pledge collateral or not.
With collateral ( property or fixed deposits), the lenders can provide up to 70-100 per cent of the value of the collateral as the loan amount at reduced interest rates.
In case you lack collateral, you may still make use of an unsecured education loan. All these normally demand a financially sound co-applicant, although not all international lenders demand one.
Note - 👉 Read our detailed Cost of Living Expenses in USA guide to estimate your monthly and yearly expenses accurately and choose an education loan amount that truly matches your study plans.
Secured and Unsecured Education Loans.
Secured Student Loan for USA (Collateral)
These are loans whose collateral is based on residential or commercial property, fixed deposit or insurance policy. Public sector banks availed includes SBI, Axis, Punjab National Bank, ICICI and Union Bank of India. The secured loans tend to have lower interest rates, larger loans and increased loan repayment periods.
Unsecured education loan for the USA.
The Unsecured education loan for the USA does not need any security but tends to attract higher interest rates. They are provided by some commonly known banks of India, like ICICI Bank, Axis Bank, IDFC FIRST Bank and Yes Bank. Some of the NBFCs, and foreign lenders like Credila, Avanse, Auxilo, InCred, Prodigy Finance, and MPOWER Financing also provide student loan for the USA. The approvals are quicker, although co-applicant having stable incomes must be required.
US Cosigner Education Loans
The US cosigner education loans are offered where a US citizen or permanent resident is willing to become a cosigner. US Cosigner loans are very attractive with interest rates as low as 5 %, and this means that they would be appealing to eligible students.
Assess Your Eligibility Requirements.
- Prior to choosing a lender, one should evaluate their eligibility. Although the eligibility requirements set by different lenders are different, the majority of education loan providers adhere to the same general principles:
- You should have verified the enrolment in a reputed university in the USA with I-20 form endorsing the same.
- You are to be an Indian citizen and have a good academic background.
- A co-applicant with income proof, who is normally needed, may be a parent, sibling or spouse with a stable financial background.
- The age required is usually 18 to 35 years, depending on the lender.
Top Lenders for Education Loans to Study in the USA
Education loans for the USA are offered by public sector banks, private banks, NBFCs, and international lenders. Loan approval depends heavily on your academic profile, university ranking, co-applicant’s income, and credit history.
Top Lenders of Secured Student Loan for USA (Collateral)
| Lender Name | Loan Limit | Loan Coverage | ROI | ROI Type | Loan Tenure | Moratorium Period | Margin Money |
|---|---|---|---|---|---|---|---|
| PNB | No Upper Limit | Entire COE | 8.65%–10.10% | Floating | 15 Yrs | C.D. + 12 Months (G.P) | 15% |
| UBI | 1.5 CR | Entire COE | 8.75%–11.85% | Floating | 15 Yrs | C.D. + 12 Months (G.P) | 15% |
| SBI | 2 CR | Entire COE | 8.50%–10% | Floating | 15 Yrs | C.D. + 6 Months (G.P) | 10% |
| Axis | 1 CR | Entire COE | 10.75%–13% | Floating | 15 Yrs | C.D. + 6 Months (G.P) | 5% (Non-Prime) |
| ICICI | 3 CR | Entire COE | 9.75%–11% | Floating | 12 Yrs | C.D. + 12 Months (G.P) | 15% (Others) |
| Credila | 2 CR | Entire COE | 9.50%–11% | Floating | 15 Yrs | C.D. + 12 Months (G.P) | NIL |
Top Lenders of Unsecured education loan for USA ( NBFC )
| Lender Name | Loan Amount | Interest Rate | Study Period Repayment Option | ROI Type | Loan Tenure | Moratorium Period |
|---|---|---|---|---|---|---|
| Credila Financial Services Ltd | Up to 1 Cr | 10.75% – 12.25% | PSI, SI, EMI | Floating | 15 Yrs | C.D. + 12 Months (G.P) |
| Avanse Financial Services Ltd | Up to 1.20 Cr | 10.75% – 11.75% | PSI, SI, EMI | Floating | 15 Yrs | C.D. + 12 Months (G.P) |
| Auxilo Finserve Ltd | Up to 1 Cr | 10.50% – 12.25% | PSI, SI, EMI | Floating | 15 Yrs | C.D. + 12 Months (G.P) |
| Incred Financial Services Ltd | Up to 1 Cr | 11.25% – 12.50% | PSI, SI, EMI | Floating | 15 Yrs | C.D. + 12 Months (G.P) |
| Tata Capital Financial Services Ltd | Up to 85 Lacs | 11.25% – 12.25% | PSI, SI, EMI | Floating | 13 Yrs | C.D. + 12 Months (G.P) |
| Poonawalla Fincorp | Up to 1 Cr | 11.25% – 12.50% | PSI, SI, EMI | Floating | 15 Yrs | C.D. + 12 Months (G.P) |
Top Private Bank providers of Unsecured Student Loan for USA
| Lender Name | Loan Amount | Interest Rate | Study Period Repayment Option | ROI Type | Loan Tenue | Moratorium Period | Margin Money | Forex Charges |
|---|---|---|---|---|---|---|---|---|
| Axis Bank | Up to 1 Cr | 11% – 13% | PSI, EMI, SI | Floating | 15 Yrs | C.D. + 06 Months (G.P) | 15% Others | 15% Others |
| ICICI Bank | Up to 1.5 Cr | 10.75% – 12% | Full Moratorium, PSI, SI | Floating | 10 Yrs | C.D. + 06 Months (G.P) | 15% Others | 70P – 1.5 Rs |
| IDFC FIRST Bank | Up to 1 Cr | 10.60% – 12% | PSI, EMI, SI | Floating | 15 Yrs | C.D. + 12 Months (G.P) | NIL | 1 Rs – 2 Rs |
| Yes Bank | Up to 75 Lacs | 11.25% – 12.25% | PSI, EMI, SI | Fixed till C.D | 10 Yrs | C.D. + 12 Months (G.P) | 0% to 15% | 1.5 Rs – 2 Rs |
No Cosigner & Non Collateral $ Loan(NBFCS)
| Lender Name | Loan Amount | Interest Rate | Study Period Repayment Option | ROI Type | Loan Tenure | Moratorium Period | Margin Money | Forex Charges |
|---|---|---|---|---|---|---|---|---|
| Prodigy Finance | Up to $2,20,000 | 9.09% – 12% | Full Moratorium | Floating | 15 Yrs | C.D. + 6 Months (G.P) | NIL | 0.02% |
| Mpower Financing | Up to $1,00,000 | 9.99% – 13% | SI | Fixed | 10 Yrs | C.D. + 6 Months (G.P) | NIL | NIL |
Education Loan for USA Study: Documents Required
Having your documents ready can significantly speed up the loan approval process. While requirements may vary slightly by lender, most ask for the following:
Documents from the Student
- I-20 form or university offer letter
- Academic records from Class 10 onwards
- Entrance exam scores such as SAT, GRE, GMAT, IELTS, or TOEFL
- Valid passport and student visa
Documents from the Co-applicant
- KYC documents such as Aadhaar, PAN, passport or Voter ID.
- Address Proof: Service bill, rental agreement,
- Income proof, including salary slips, ITR, and bank statements
- Collateral documents, if applicable
Also Read - To Apply Education Loan for UK Without Collateral
How to apply Student Loan for the USA through Student Cover.
Contact Student Cover
- Contact a Student Cover representative through the following route:
- Website form - https://www.studentcover.in/education-loan/
- Loan helpline – 9871377966
- Online Chat - https://studentcover.in/
- You will be assigned a loan buddy, who handles your case through-out.
- Share your requirements regarding the type of loan, loan amount, and ROI
- Provide the necessary details about your academic & financial profile
Profile Evaluation
- Profile entry for the client.
- Eligibility assessment for an education loan
- If the student is found eligible, Student Cover will contact the lender bank/financial company and revert back to the client.
Documentation
- The student cover loan agent will collect loan documents from the client.
- If the client is located outside Delhi NCR, it will be collect
- ed by an official from the bank within 48 hours.
Approval & Negotiation
- Profile entry for the client.
- Within 7 working days, Student Cover will update the client with approval/rejection information from the lender.
- If the client wants to negotiate a RoI, it can submit a request for negotiation with student cover.
- Student Cover will provide the lender's final offer within 2 working days
Processing fee & Sanction letter
- On acceptance of the offer, the client will have to deposit the processing fee in the lender's bank account. This can be done either through a cheque or an online transfer.
- On receipt of the processing fee, the bank will send the loan sanction letter within 48 hrs.
How to Secure Your Education Loan in the Shortest Time.
With proper planning and preparation, you have a high probability of securing a loan fast. Getting it ready early enough will prevent the stress at the last moment. Good academic background and acceptance to a highly rated, internationally known university are also contributing factors to the approval. The secret to doing so is to pick a co-applicant that is financially stable and to shop around the interest rates offered by lenders.
Conclusion
Securing an education loan for USA becomes much simpler when you plan and choose the right lender. Start early, compare your options carefully, and ensure all documents are in place before applying.
Looking for a hassle-free way to finance your education in the USA? Connect with Student Cover today. Where you can compare multiple lenders in one place, with the best options including collateral and non-collateral loan options. Our expert counsellors assess your profile and provide personalised education loan guidance at no cost—helping you take the next step toward your US education journey with confidence.
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