Education Loan for studying in the USA, Eligibility, Documents, Bank Name

Education Loan for studying in the USA: To attain education in the USA is the biggest challenge. The bothering part is managing the expenses in the most popular but yet one of the costliest countries of the world. It is understandable that to arrange the money for studying in the USA is not an easy task and this is the reason, education loan for studying in the USA becomes a prominent question. Fortunately, several banks and other sources may help the students and professionals in fulfilling their dream. This article will discuss everything about education loans for studying in the USA, documents required, loan prerequisites, etc.

Procedure to Apply for an Education Loan:

Most of the universities in the US begin the application process in October. Thus, it is suggested that one should begin the loan process accordingly. The process includes steps such as loan evaluation, loan sanction letters (proof of funds), etc. Candidates need to send all these documents to the university before admission.  Loan payment can be done after receiving the confirmation about admission and i20 from the university. And the loan evaluation can be done before the admission confirmation. The entire process takes time, so one should start early to avoid the last-minute rush. As soon as you submit the applications to the institute and while you wait for the offer letter, get busy with loan arrangements.

Compare the Loan Providers For Better Opportunities:

A smart borrower is one who can make comparisons. The parameters of comparison are as follows:

  • Interest rate
  • Different elements of costs it covers (tuition fee, living expenses, cost of books and so on)
  • Processing Fee
  • Income tax exemptions
  • Loan margin
  • Loan processing time
  • Prepayment terms

Points to Remember Before Applying for an Education Loan:

Before applying for an education loan, you must have a clear idea about the money you need through a loan and how you can arrange it on your own. Here are some other important factors to consider:

  • Finalize the course you want to pursue
  • Decide the university from where you want to pursue the course
  • Estimated amount you need
  • List of documents needed
  • Identify the guarantor
  • Apply for the loan at least three months before the visa interview date
  • The time of disbursement

Eligibility Criteria for Education Loan:

Here are the eligibility guidelines and some common factors that are taken into consideration by all money lending institutions (especially banks) includes the following:

  • The candidate must be a citizen of India.
  • The applicant must have acquired the age of 18 years so that his/her parents can apply for the loan.
  • The candidate must be from a good academic background.
  • The aspirant must have attained admission to a recognized foreign university/institution/college.
  • The desired course must be a technical or professional one, as banks prefer job-oriented courses.

Documents Required:

Banks ask for different documents while applying for the study loan. The documents primarily needed for a loan are as follows:

For Student Applicants:

  • Identity Proof (anyone) – PAN/Passport/Driver’s License/Voter ID card
  • Residence Proof: A recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card
  • Passport
  • Academic Record Result of Class X and XII
  • Proof of admission: Offer Letter or Admission Letter from the Institution. A conditional admission letter for studying abroad.
  • Statement of cost of study/Schedule of expenses
  • Graduation Result: Semester-wise
  • Entrance Exam Result through which admission has been secured (GMAT, GRE, TOEFL or IELTS)
  • 2 latest passport-size photographs
  • If any previous loan from other Banks/Lenders, then submit loan A/C statement for last 1 year

For Co-applicants:

  • Identity Proof (anyone) – PAN/ Passport/ Driver’s License/Voter ID card
  • Residence Proof (anyone) – A recent copy of Telephone Bill/Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/Aadhaar Card
  • 2 latest passport-size photos
  • If any previous loan from other Banks/Lenders, then Loan A/C statement for the last 1 year

For Income Proof of Salaried Co-applicant/Guarantor:

  • A copy of Form 16 for the last 2 years or a copy of IT Returns for the last 2 financial years, acknowledged by IT Department
  • Salary Slip or Salary Certificate of the last 3 months
  • Bank account statement for the last 6 months (of Salary Account)

For Income Proof for Self-employed Co-applicant/ Guarantor:

  • Business address proof
  • IT returns for the last 2 years (if IT payee)
  • TDS Certificate (Form 16A, if applicable)
  • Certificate of qualification (only for C.A./Doctor and other professionals)
  • Bank account statement for last 6 months

Expenses covered under the education loan:

Here are the expenses covered in the education loan:

  • College and hostel fee
  • Examination, library, and laboratory fee
  • Purchase of books, equipment, and instruments
  • Caution deposit, building fund, and a refundable deposit
  • Travel expenses
  • Insurance premium for the student
  • Purchase of laptop (if needed for the course)
  • Other expenses such as study tours, project work, or thesis

Education Loan Providers for Studying in the USA:

Here is the list of banks providing educational loan to study in the USA:

  1. HDFC Credila
  2. State Bank of India
  3. Axis Bank
  4. Punjab National Bank
  5. Bank of Baroda
  6. Canara Bank
  7. IDBI Bank
  8. Avanse Financial Services

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