One of the frequently visited source of funds is a bank loan. Although many banks offer lucrative student loans to Indian citizen, I am going to focus on student loans for NRI ( Non-Resident Indians). If you don’t have permanent residency of India ( because of being in NRI status) and the United States ( because you didn’t get your green card), you have many options that require due diligence and considerable leg work, but nonetheless you can avail bank loan.
I have reached out to three banks and 1 private institute.
Credila – is a private financial arm of HDFC Bank that offers bank loan to students. They need co-signer from India and any property or insurance policy or investment as collateral. One important thing is that you can title your siblings or relative as co-signer. Link
Andra Bank – provides the similar loan. You need to cognizant of the interest rate and loan amount. Check out the NRI Education Loans section. Link.
State Bank of Hyderabad (SBH) – If you have an account with SBH, it will come handy. Again, they offer same loan scheme. Check out the Education Loans to NRIs for more information. Link.
Federal Bank – offers a more lucrative loan like others. They call it Vidya Loan. Check it out. Link
While I can’t solicit advice on the selection of bank, here are few things to remember -
1. Check out the interest rate of each bank. If you are not an NRI, it’s even better. You have more banks that can offer great interest rates. Also, remember that interest rate is negotiable. If you are heading to the top business schools from Europe, United States, China, Hong Kong, Singapore,etc, you can potentially dig more heels during your negotiation. After all, you are expected to get a better pay after MBA and can repay the loan soon enough. Why shouldn’t you?
2. If you can offer property or investment to be used as collateral, your chances of getting loan will considerably increase.
3. Select co-signer who is below 60 years of age.
4. Apply early as this process will take a lot of time.
Any questions or comments!!Most welcome!!
