B.tech from USA is one of the most preferred courses due to its high job prospects and quality education. A lot of universities in the USA are renowned for engineering education with 100% placements. However, pursuing B.tech from USA is a bit costlier as compared to other countries which every student cannot afford on their own.
To make the financial factor easy, a lot of government and private banks offer education loans for B.tech from USA under different schemes. In this blog, we will understand all the major features and some of the top banks for education loan for B.tech from USA.
Table of contents
Why Should You Take Education Loan for B.Tech from USA?
Taking an education loan for a B.Tech degree from the USA is one of the best ways to pursue higher education from some of the most competitive universities in the world. The USA boasts some of the world’s top engineering schools that offer research opportunities and industry connections that can significantly enhance your career prospects. There are a lot of Government education loans to study in USA launched by the Indian government. An education loan can make this high-quality education easily accessible, allowing you to benefit from advanced learning environments, diverse student communities, and extensive professional networks.
Also Read: Check here all the major details about Prodigy Finance Education Loan to Study Abroad
Best Banks for Education Loan for B.Tech from USA
All major banks in India provide education loans to study in USA. Some of the best banks for education loans for B.Tech from USA are SBI, Bank of Baroda, PNB, Bank of India, HDFC bank etc. All these banks offer education loans to study abroad under various schemes. Some banks also offer discounts on interest rates based on certain categories. Let’s check the major features of education loans from banks below:
| Banks | Features of Education Loan |
| State Bank of India | -Up to INR 1.5 crore under the SBI Global Ed-vantage Scheme -Discounts are offered to female students and to applicants who purchase SBI RinN Raksha for Education Loan -Interest rates start from 11.15% (floating rate) |
| Bank of Baroda | -Zero processing charges for loan amounts up to INR 7.5 lakh -Interest rate starting from 9.70% -Special rate of Interest for wards of defence personnel under the Baroda Yodha Education Loan Scheme |
| Punjab National Bank | -Up to INR 1.5 crore education loan under PNB Udaan Scheme to study abroad -Interest rate starting from 8.80% -The processing fee is only 1 % of the total loan amount |
| HDFC Bank | -Upto INR 45 lakh education loan without collateral -Interest rates start from 9.50% p.a -Loan insurance available under HDFC Life Group Loan Suraksha |
| Bank of India | -Interest rate start from 9.25% under BOI Star Education Loan -No documentation charges and processing charges -Need-based finance to meet expenses, subject to earning potential of students upon completion of the course (Up to INR 1.5 crore) |
Best NBFCs for Education Loan for B.Tech from USA
Several Non-Banking Financial Companies (NBFCs) are renowned in India for their favourable terms and customer support. Among some of the best NBFCs for education loans to study B.Tech in USA are HDFC Credila, Avanse, and InCred. You can also apply for an education loan for MS in USA from these NBFCs. All these NBFCs offer competitive interest rates, flexible repayment options, and specialised loan products for international students. They also provide personalised assistance throughout the loan application process. Check the major features of some of the best NBFCs for education loans for B.Tech from USA below:
| NBFCs | Major Loan Features |
| HDFC Credila Education Loan | -Interest rate starting from 10.5% to 14% -All approved top-notch courses from foreign universities are eligible for loan -Repayment period of up to 12 years |
| InCred Education Loan | -Up to INR 60 lakhs without collateral -Up to INR 1.5 crores with collateral -Interest rate starting from 11-18% p.a |
| Avanse Education Loan | -Up to 100% finance for course fees and other expenses -Loan sanctions within 72 hours -Secured and Unsecured Loans up to INR 75 lakh |
Also Read: Planning to pursue a career in medicine and surgery abroad? Check here all about Education Loan for MBBS
Eligibility Criteria
To be eligible for an education loan to pursue a B.Tech degree in the USA, the students need to fulfil several criteria. These include having a confirmed admission to a recognised university in the USA. Check some essential eligibility criteria below:
- The student must have good academic records
- The students need to provide a co-applicant, such as a parent or guardian
- The co-applicant shall have a stable income and a good credit history.
- The students may need to submit collateral for loans above a certain amount (usually INR 7.5 lakh)
- The students may need to submit proof of the ability to repay the loan post-graduation might be required.
Documents Required
Documents required for an education loan shall be checked properly by the students to ensure the loan approval process smooth. To apply for an education loan for a B.Tech degree in the USA, the students need to submit the following documents:
- Admission letter from a recognised university in the USA.
- Certificates and mark sheets of previous education (10th, 12th, UG, and any other relevant qualifications).
- Passport, Aadhar card, PAN card, or any other government-issued ID.
- Utility bills, Aadhar card, voter ID, or driving license.
- Salary slips, and income tax returns (ITR) of the co-applicant (parent or guardian).
- Bank account statements of the last six months for the co-applicant.
- If the loan amount exceeds INR 7.5 lakhs (or as directed by the lender), documents related to collateral security.
- Duly filled loan application form provided by the bank or financial institution.
- Recent photographs of the applicant and co-applicant.
- Details of the tuition fees and other expenses from the university.
- Documents proving the award of scholarships or financial aid (If applicable)
This was all about education loans for B.Tech from USA. Always compare the banks and NBFCs and finalise the best-suited offer for you. Check some of the FAQs based on the same below:
FAQs
The maximum loan amount for studying B.Tech in the USA varies depending on the bank or financial institution and whether the loan is secured or unsecured. Usually, unsecured education loans can range from INR 7.5 lakhs to INR 20 lakhs. For higher loan amounts, up to INR 1.5 crores, collateral such as property or fixed deposits may be required.
Interest rates on education loans for B.Tech in the USA can vary based on the bank or financial institution, the loan amount, and whether the loan is secured or unsecured. Generally, interest rates range from 8% to 15% per annum.
The time taken to approve an education loan can take anywhere from 15 to 30 days for loan approval. The process involves the verification of documents, evaluation of the applicant’s and co-applicant’s financial status, and valuation of collateral.
Repayment terms for education loans usually start after the completion of the course and a moratorium period. You can get a repayment period of 10-15 years. Most banks provide a moratorium of course period plus one year or 6 months after getting a job, whichever is early.
Yes, there are tax benefits for education loans under Section 80E of the Income Tax Act, 1961. The interest paid on the education loan is eligible for deduction from taxable income. This benefit is available for up to 8 years, starting from the year in which the loan repayment begins, or until the interest is fully repaid, whichever is earlier.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
Related Blogs
Follow Us on Social Media
