Education Loan for USA 2026: SBI, HDFC, Credila - Interest Rates, Process & Collateral Guide
Priya Sharma
Senior USA Education Consultant
Priya is a senior education consultant at EEC with over 12 years of experience helping Indian students secure admissions and visas to top US, Canadian, and UK universities. She has personally guided 3,000+ students through the F-1 visa process with a 97% success rate.
Education loan for USA from India in 2026 is available from ₹7.5 Lakhs to ₹1.5 Crore at interest rates starting from 10.15% (SBI) to 13% (HDFC Bank). SBI's Global Ed-Vantage scheme now offers collateral-free education loans up to ₹50 Lakhs for SEVP-certified US universities. HDFC Bank, Credila, Prodigy Finance, and MPOWER Financing also provide competitive education loans for Indian students. The loan covers tuition fees, living expenses, airfare, laptop, books, and health insurance. With Section 80E of the Income Tax Act, the interest paid is 100% tax-deductible. This comprehensive guide from EEC's USA education team — with 27+ years of experience and 50,000+ students placed — covers every bank, every rate, every document, and every strategy to get your education loan for USA sanctioned quickly.
All Banks & NBFCs Compared — Education Loan for USA 2026
Choosing the right bank for your education loan for USA from India can save you ₹2–5 Lakhs in interest over the loan tenure. Interest rates, collateral requirements, processing time, and maximum loan amounts vary significantly across lenders. Here is the definitive 2026 comparison of every major bank and NBFC offering education loans for studying in USA:
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| Bank / NBFC | Max Loan | Interest Rate | Collateral | Processing | Moratorium |
|---|---|---|---|---|---|
| SBI Global Ed-Vantage | ₹1.5 Crore | 10.15%–11.50% | Required >₹7.5L | 15–20 days | Course + 12 months |
| HDFC Bank | ₹1 Crore | 11.50%–13.00% | Required | 10–15 days | Course + 6 months |
| Bank of Baroda | ₹80 Lakhs | 10.65%–11.50% | Required >₹4L | 15–20 days | Course + 12 months |
| Axis Bank | ₹75 Lakhs | 13.00%–14.00% | Required | 10–15 days | Course + 6 months |
| Canara Bank | ₹40 Lakhs | 10.95%–11.90% | Required >₹7.5L | 20–25 days | Course + 12 months |
| PNB | ₹1 Crore | 10.75%–12.00% | Required >₹7.5L | 15–20 days | Course + 12 months |
| Credila (HDFC) | ₹1 Crore | 11.00%–13.00% | Varies by profile | 7–10 days | Course + 6 months |
| Prodigy Finance | ₹75 Lakhs | 7.50%–12.00% | No collateral | 5–7 days | Course + 6 months |
| MPOWER Financing | ₹50 Lakhs | 8.00%–14.00% | No collateral | 5–7 days | Course + 6 months |
| Avanse | ₹1 Crore | 11.50%–14.50% | Varies by amount | 7–10 days | Course + 6 months |
| InCred | ₹1 Crore | 11.25%–14.00% | Varies by profile | 7–10 days | Course + 6 months |
The lowest interest rate is offered by SBI education loan for USA at 10.15% for female applicants (10.40% for males). PSU banks (SBI, Bank of Baroda, Canara, PNB) consistently offer lower rates than private banks but have longer processing times. For students targeting affordable US universities, a loan of ₹20–40 Lakhs from SBI or Bank of Baroda is the most cost-effective option. For premium universities requiring ₹60 Lakhs+, HDFC Credila and Avanse offer higher limits with faster disbursement.
Pro Tip
Confused about which bank offers the best education loan for your profile? EEC\u2019s loan specialists compare all options and connect you with partner banks for priority processing. Free consultation.
Book Free ConsultationSBI Global Ed-Vantage — The Most Popular Education Loan for USA
The SBI education loan for USA (Global Ed-Vantage scheme) is the most popular choice among Indian families — and for good reason. It offers the lowest interest rate among all banks, zero processing fee, and the highest loan limit at ₹1.5 Crore. Here is everything you need to know about SBI's flagship education loan product for studying abroad:
SBI Global Ed-Vantage — Key Features
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| Feature | Details |
|---|---|
| Loan Amount | ₹7.5 Lakhs to ₹1.5 Crore |
| Interest Rate | 10.15% (female) / 10.40% (male) — MCLR linked |
| Collateral | Required for loans above ₹7.5 Lakhs |
| Collateral-Free Limit | Up to ₹50 Lakhs (SEVP-certified universities) |
| Processing Fee | NIL (Zero) |
| Moratorium Period | Course duration + 12 months |
| Repayment Tenure | Up to 15 years after moratorium |
| Margin Money | 15% for loans >₹4 Lakhs |
| Co-borrower Required | Yes — parent/guardian |
| Insurance | Life insurance on student recommended |
| Covers | Tuition, living, airfare, laptop, books, insurance, caution deposit |
| Disbursement | Directly to university + student account |
A major 2025 update: SBI now offers collateral-free education loans up to ₹50 Lakhs for students admitted to SEVP-certified US universities with strong academic profiles. This is a game-changer for families without property to pledge as collateral. The collateral-free variant has a slightly higher interest rate (11%–11.50%) but eliminates the property valuation process and speeds up approval. If you are targeting an MS in USA at a mid-range public university, this collateral-free option may cover your entire tuition.
Good News
Collateral-Free Education Loan for USA — No Property Required
Not every Indian family has property or fixed deposits to pledge as collateral. The good news: several lenders now offer collateral-free education loans for USA based on your admission offer, university ranking, and future earning potential. Here are the best options in 2026:
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| Lender | Max (No Collateral) | Interest Rate | Eligibility | Best For |
|---|---|---|---|---|
| SBI (new scheme) | ₹50 Lakhs | 11.00%–11.50% | SEVP-certified university, strong profile | PSU bank trust + low rate |
| Prodigy Finance | ₹75 Lakhs | 7.50%–12.00% | Top-ranked university, STEM degree | Lowest rate, no co-signer |
| MPOWER Financing | ₹50 Lakhs | 8.00%–14.00% | Top 400 global university | Fast approval, no co-signer |
| Credila (HDFC) | ₹20 Lakhs | 11.50%–13.50% | Strong academics, admit letter | HDFC brand reliability |
| Avanse | ₹40 Lakhs | 12.00%–14.50% | University ranking + profile | Flexible documentation |
| InCred | ₹30 Lakhs | 11.25%–14.00% | Top university admit + co-signer | Quick digital process |
Prodigy Finance and MPOWER Financing are the leaders in collateral-free international education loans. Unlike Indian banks, these global lenders do not require a co-signer, property, or fixed deposit. They evaluate your application based on the university's ranking, your degree's employment outcomes, and your projected future salary. Prodigy Finance covers 350+ universities across 150+ countries and has funded over $2.5 billion in student loans. For students targeting STEM courses in USA, Prodigy's rates start as low as 7.50% — lower than any Indian bank.
Warning
Need a collateral-free education loan? EEC partners with Prodigy Finance and MPOWER for priority applications.
Documents Required for Education Loan — Complete Checklist
Getting your education loan for USA from India sanctioned quickly depends on having all documents ready before you apply. Missing even one document can delay your loan by 1–2 weeks. Here is the complete checklist organised by category:
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| Category | Document | Required By | Notes |
|---|---|---|---|
| Academic | 10th & 12th mark sheets | All banks | Originals + attested copies |
| Academic | Graduation mark sheets & degree | All banks | Semester-wise + consolidated |
| Academic | GRE / GMAT score report | Most banks | Official ETS/GMAC report |
| Academic | IELTS / TOEFL score report | Most banks | Official score card |
| Admission | University admit letter (I-20) | All banks | Must show tuition + cost of attendance |
| Admission | Fee structure / cost breakdown | All banks | From university website or I-20 |
| Admission | Scholarship letter (if any) | All banks | Reduces loan amount needed |
| Financial | Co-borrower IT returns (3 years) | Indian banks | Parent/guardian ITR |
| Financial | Co-borrower salary slips (6 months) | Indian banks | If salaried |
| Financial | Bank statements (12 months) | All banks | Both student & co-borrower |
| Financial | Property documents (if collateral) | Indian banks | Valuation report may be required |
| Identity | Student passport | All banks | Valid for 2+ years |
| Identity | Student & co-borrower Aadhaar + PAN | Indian banks | KYC compliance |
| Identity | 2 passport-size photos | Indian banks | Recent, white background |
Pro Tip
Don’t Navigate This Alone.
27+ Years. 50,000+ Students. High Visa Success Rate.
Education Loan Application Process — Step-by-Step Guide
The education loan application process for USA involves 7 clear steps from initial inquiry to final disbursement. Follow this step-by-step guide to get your loan sanctioned in the shortest possible time:
Research & Compare Banks
Compare interest rates, collateral requirements, and max loan amounts across SBI, HDFC, Prodigy Finance, and other lenders. Use EEC's free loan comparison service to identify the best option for your profile.
Get University Admission & I-20
Apply to universities and secure your admit letter. Request the I-20 form from your chosen university — this document lists the total cost of attendance and is required by all banks.
Collect All Documents
Gather academic transcripts, admit letter, I-20, co-borrower financials, property documents (if collateral), and identity proofs. Use the checklist above to ensure nothing is missing.
Submit Loan Application
Visit the bank branch or apply online. SBI and HDFC accept online applications. For Prodigy Finance and MPOWER, the entire process is digital — no branch visit needed.
Property Valuation (If Collateral)
For collateral-based loans, the bank sends a valuer to assess your property. This takes 3–7 days. Ensure property documents are clear (no pending disputes or encumbrances).
Loan Sanction & Offer Letter
Once approved, the bank issues a sanction letter specifying the loan amount, interest rate, tenure, and conditions. Review all terms carefully before accepting.
Disbursement to University
After you accept the offer, the bank disburses tuition fees directly to the university and living expense funds to your student account. First disbursement happens 7–15 days before semester starts.
The entire process — from application to disbursement — typically takes 15–30 days for Indian banks and 5–14 days for international lenders like Prodigy Finance. Start your loan application at least 2 months before your semester start date. If you are planning for Fall 2026 intake, begin the loan process by May 2026.
EEC partners with SBI, HDFC, Bank of Baroda, and Prodigy Finance for priority loan processing. Our students get faster sanctions and dedicated bank relationship managers. Book free loan counselling.
Book Free ConsultationRepayment Plans & EMI Calculator — Education Loan for USA
Understanding your education loan EMI is critical before you sign the loan agreement. Most banks offer a moratorium period (course duration + 6–12 months) during which you do not pay any EMI. After the moratorium, you start repaying principal + interest in equated monthly instalments. Here is the EMI breakdown for different loan amounts:
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| Loan Amount | Interest Rate | Tenure | Moratorium | Monthly EMI | Total Interest Paid |
|---|---|---|---|---|---|
| ₹20 Lakhs | 10.50% | 10 years | 2.5 years | ₹27,050 | ₹12.46 Lakhs |
| ₹30 Lakhs | 10.50% | 10 years | 2.5 years | ₹40,575 | ₹18.69 Lakhs |
| ₹40 Lakhs | 10.50% | 12 years | 2.5 years | ₹44,900 | ₹24.65 Lakhs |
| ₹50 Lakhs | 11.00% | 12 years | 2.5 years | ₹58,250 | ₹33.90 Lakhs |
| ₹75 Lakhs | 11.00% | 15 years | 2.5 years | ₹71,500 | ₹53.70 Lakhs |
| ₹1 Crore | 11.50% | 15 years | 2.5 years | ₹1,01,000 | ₹81.80 Lakhs |
A ₹40 Lakh loan at 10.50% with a 12-year repayment tenure costs approximately ₹44,900/month in EMI after the moratorium period ends. For students who land a job during OPT in USA earning $70,000–$140,000/year, this EMI is very manageable — representing only 5–10% of monthly take-home pay. Many students choose to make partial prepayments during OPT to reduce the total interest burden.
Smart Repayment Strategies
You can significantly reduce the total interest paid on your education loan for USA with these strategies:
Pay Simple Interest During Moratorium
Instead of letting interest accumulate during your study period, pay the simple interest monthly (₹3,500–₹9,500/month on ₹40 Lakhs). This prevents interest compounding and saves ₹2–6 Lakhs over the loan tenure.
Make Partial Prepayments During OPT
Once you start earning on OPT ($5,000–$12,000/month), allocate 30–40% of your income to loan prepayment. Prepaying ₹5 Lakhs in the first year reduces your total interest by ₹3–4 Lakhs.
Refinance After 2 Years
If your credit score improves or interest rates drop, refinance your loan to a lower rate. A 1% rate reduction on a ₹50 Lakh loan saves ₹5–7 Lakhs over 15 years.
“I took a ₹35 Lakh SBI education loan for my MS at Arizona State. During my STEM OPT, I earned $95K/year and prepaid ₹12 Lakhs in the first year. My loan will be fully repaid 5 years ahead of schedule. EEC connected me with the right SBI branch manager.”
— Priya S., MS Computer Science, Arizona State University
Section 80E Tax Benefit — Save ₹2–6 Lakhs on Education Loan Interest
One of the most overlooked benefits of taking an education loan for USA from India is the tax deduction under Section 80E of the Income Tax Act. The interest paid on education loans is 100% deductible from your taxable income — with no upper limit on the deduction amount. This benefit is available for 8 years from the year you start repaying.
Section 80E — Key Rules
Who Can Claim?
The individual who repays the loan — either the student or the parent/co-borrower. Only the person making the payment claims the deduction. Cannot be claimed by HUF or company.
What Is Deductible?
Only the INTEREST component of the EMI is deductible — not the principal. For a ₹40 Lakh loan at 10.50%, the interest in the first year is approximately ₹4.2 Lakhs.
Duration
8 consecutive years starting from the year you begin repaying the loan. If your moratorium period is 2.5 years, the 8-year clock starts after the moratorium ends.
Tax Savings Example
If your co-borrower (parent) is in the 30% tax bracket and the annual interest is ₹4 Lakhs, the tax saving is ₹1.2 Lakhs/year (₹4L × 30%). Over 8 years, this totals ₹6–10 Lakhs in tax savings.
Good News
Need help understanding Section 80E and optimising your tax benefits? EEC\u2019s financial counsellors guide you through the process.
7 Expert Tips to Get Your Education Loan Approved Faster
Getting an education loan for USA sanctioned is not just about submitting documents — it is about presenting a strong application that makes the bank confident in your repayment ability. Here are 7 expert tips from EEC's loan specialists who have helped 50,000+ students secure education loans:
Choose a STEM Program at a Ranked University
Banks evaluate your loan based on employment potential. STEM degrees from ranked universities have the highest approval rates because of 3-year OPT and $80K+ starting salaries. Read our guide on the best STEM courses in USA.
Show a Strong Co-Borrower Profile
Your parent/co-borrower's income, credit score (750+), and ITR history matter significantly. Ensure your co-borrower has filed ITR for the last 3 years with stable or growing income.
Apply to 2–3 Banks Simultaneously
Do NOT wait for one bank to reject before trying another. Apply to SBI, one private bank, and one NBFC in parallel. This creates competition and improves your chances of getting the best terms.
Get Scholarship Letters Before Applying
Any scholarship — even $2,000 — reduces the loan amount needed and signals to the bank that you are a strong candidate. Apply to universities with automatic merit scholarships.
Prepare a Career Plan Document
Create a 1-page document outlining your career plan: target companies, expected salary, repayment strategy. This is not mandatory but impressive — it shows the bank you have thought about repayment.
Keep Property Documents Ready
If offering collateral, ensure property documents are clear (no disputes, no existing mortgage, valid title). Get a pre-valuation done to speed up the process. Banks reject collateral with legal issues.
Apply 3–4 Months Before Semester
Start the loan process in April–May for Fall intake (August/September). This gives enough buffer for property valuation, sanction, and disbursement. Last-minute applications face delays and rushed decisions.
The education loan for USA from India process does not need to be stressful. With the right bank, correct documentation, and strategic timing, your loan can be sanctioned in as little as 10–15 days. Whether you need ₹20 Lakhs for a budget-friendly university or ₹1 Crore for a top-ranked program, the key is planning ahead. Start by comparing banks, collecting documents, and applying early. Book a free consultation with EEC to get personalised loan guidance from our financial counsellors. We have partnered with SBI, HDFC, Bank of Baroda, Prodigy Finance, and MPOWER to ensure our students get priority processing and the best possible terms. With scholarships, OPT earnings, and part-time work, your actual out-of-pocket cost is far lower than the sticker price. Invest in your MS in USA and let the STEM OPT salary repay your loan within 3–5 years.
Ready to apply for your education loan? EEC\u2019s dedicated loan desk handles the paperwork, coordinates with banks, and ensures fastest possible sanction. Talk to our loan specialist today.
Book Free ConsultationFrequently Asked Questions: Education Loan for USA
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