Lock in rates as low as 9.99% (10.89% APR)* for the fall 2025 semester! Act Now!

International education loans in India

You, like a growing number of Indian students, aspire to study abroad, but finding international education loans for Indian students can be a challenge. It requires research – from where to find loans and how to apply for a student loan to understanding no-cosigner student loans and other options for student loans.

This article addresses the unique financial aid challenges Indian students face and offers an overview of the available avenues for funding their international education.

Education loans for Indian students studying abroad

Understanding the landscape of education loans requires knowing which types of student loans are accessible and which are not, as well as other important aspects of international student financing.

Types of education loans available

  • Private international student loans: Private lenders are the most common source of loans for students in India looking to study overseas. These loans can cover tuition, living expenses and other educational costs for study in the United States. They might require a credit check or a cosigner, although some student loan lenders provide no-cosigner student loans.
  • Indian bank education loans: Some banks in India offer education loans for studying abroad. These loans may cover tuition and other expenses and might require collateral for higher amounts.
  • Global education loans: Some international financial institutions and organizations offer education loans specifically for students from international countries, including India.

In most cases, international students from India are not eligible for federal student loans in countries like the U.S. or Canada, as these are usually reserved for citizens or permanent residents.

Additional considerations for education loans in India

  • Interest rates: Interest rates can vary significantly between different student loan lenders and loan types. Fixed-rate student loans offer stability in repayments, whereas variable-rate loans might start with lower rates but can fluctuate over time – a more risky option for international students.
  • Repayment terms: Some loans require payments while still in school, while others may have a grace period after graduation.
  • Currency exchange impact: Students in India looking to study overseas in the U.S. or Canada, need to keep in mind the impact of currency exchange rates on loan repayment amounts. Fluctuations in exchange rates can significantly affect the overall cost of the loan.

What to know about the loan application process:

  • Documentation and eligibility: Students typically need to provide academic records, admission letters and proof of financial means. Student loan eligibility criteria can include the student’s credit history, chosen course of study and the target university.
  • Research and compare: Students should research and compare not only the terms and conditions of the loan, but also the credibility and reputation of the lender.
15_SEO Image_830x550

Experience Financial Empowerment

Get the financial information you need to take charge of your future.

Read More

Common challenges in education loans for Indian students

Securing international education loans presents several challenges to international Indian students:

  • Complex international financial systems: Challenges such as fluctuating currency exchange rates, establishing a credit history in a new country and following visa financial requirements can significantly impact the ability to secure and manage loans effectively.
  • Credit history and cosigner requirements: The typical requirement of a strong credit history or a cosigner is often a major hurdle for international Indian students, who may not have access to these in the host country.
  • Balancing financial needs and academic goals: International students in India looking to study abroad often need to find a balance between their financial limitations and their academic aspirations, requiring careful selection of courses, institutions and countries.

Strategic financial planning for study overseas

Strategic financial planning is crucial to Indian students in mapping out how to efficiently fund their education abroad. Here are some financial planning starting points:

  • Early planning and assessment: Begin with a comprehensive assessment of your study abroad program’s total costs, including tuition, living expenses, travel and other fees. Starting early gives you ample time to apply for scholarships and accumulate savings.
  • Diversify funding sources: Avoid relying solely on one financial aid type. A combination of scholarships, grants, personal savings and loans can help cover educational expenses. Using a variety of funding sources can reduce financial stress.
  • Financial literacy workshops: Engage in financial literacy workshops and webinars provided by educational institutions, financial aid organizations and lenders. These sessions offer helpful information on managing finances abroad, comprehending loan terms and adopting effective budgeting techniques.
  • Planning for repayment: Familiarize yourself with your loan’s repayment terms. Think about your repayment strategy after graduation, especially if you intend to work abroad or return to India. Opt for loans with repayment flexibility that matches your future career objectives.
16_SEO Image_830x550

Why MPOWER Financing?

MPOWER Financing is a student loan lender focused on providing the best support and financial aid for international students. The MPOWER team has a wealth of experience supporting Indian students in pursuing their dreams of studying overseas. Here are a few reasons MPOWER is different:

  • Specialized education loans for Indian students: MPOWER offers products specifically suited for Indian students studying abroad, understanding their need for reliable and accessible financial solutions.
  • Simplified loan application: The process of applying for these loans is streamlined, with clear guidance on documentation and eligibility.
  • Benefits beyond funding: MPOWER Financing believes funding a student’s education is only the first step to success – not the last. That’s why every MPOWER student gains access to exclusive career, immigration and financial resources through its Path2Success program.
  • Guided by personal insight: With a founding team that includes former international students, as well as a major Indian based office, MPOWER possesses a deep understanding of the distinct challenges faced by Indian students pursuing education abroad. The team leverages this firsthand knowledge to provide personalized assistance at every step of your educational journey, including post-graduation career support.
  • Financial versatility: MPOWER student loans offer financial flexibility, enabling you to allocate funds for a wide range of expenses, including international health insurance, textbooks, meal plans and housing, if studying in the U.S.

    MPOWER also offers competitive fixed-rate student loans from US$2,001 to US$100,000 total, and with auto pay, you can get a 0.25% interest rate discount. Also, if you have loans from other lenders, you can still apply for an MPOWER loan.

  • No cosigner, no collateral: What truly sets MPOWER apart from many private student loan lenders is the progressive approach to loan decisions. Instead of dwelling on your past financial history and family assets, MPOWER focuses on evaluating your future potential as an Indian student. You won’t be required to have a cosigner or collateral, which simplifies the application process and makes it significantly more accessible for Indian scholars seeking financial aid.

MPOWER Student Loan

A loan based on your future earnings

Apply Now

FAQs

What are the key steps for Indian students in getting a student loan for their international education?

International students should start by researching loan options, understanding eligibility criteria and preparing necessary documentation. Considering factors like interest rates, repayment terms and the impact of currency exchange rates is also key.

Are scholarships available for Indian students studying abroad?

Yes, numerous scholarships through schools, governments and private organizations are available for students from India. Scholarships often focus on specific fields of study, academic merit or financial need. Some schools may also offer scholarships for students from specific regions like India. MPOWER Financing provides an exclusive scholarship for Indian students pursuing STEM degrees. If your degree is outside of the STEM field, make sure to check out other MPOWER scholarships to fund your education.

What challenges do Indian students face in securing student loans for studying abroad?

International students from India often struggle with finding loans that don’t require a cosigner or collateral and learning about foreign financial systems. International students must remember to factor living expenses into their total costs, and they should be aware that living expenses can be much higher than what they’re used to at home.

How do Indian students choose the right international education loan?

The right loan choice depends on several factors, including the total loan amount, interest rates, repayment terms and any additional support offered by the lender. It’s important to compare different options for student loans and select one that aligns with personal educational and financial goals.

*Rates as low as 9.99% (10.89% APR) available only for the fall 2025 semester and you must submit your application by December 31, 2024. This interest rate and APR includes a 0.25% discount for automatic recurring payments and a 0.75% discount from our limited-time early planner promotion.

DISCLAIMER – Subject to credit approval, loans are made by Bank of Lake Mills or MPOWER Financing, PBC. Bank of Lake Mills does not have an ownership interest in MPOWER Financing. Neither MPOWER Financing nor Bank of Lake Mills is affiliated with the school you attended or are attending. Bank of Lake Mills is Member FDIC. None of the information contained in this website constitutes a recommendation, solicitation or offer by MPOWER Financing or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.

2024 © MPOWER Financing, Public Benefit Corporation NMLS ID #1233542

U.S. office India office
1101 Connecticut Ave. NW Suite 900, Washington, DC 20036 The Cube at Karle Town Center, 9th Floor, 100 Ft, Nada Prabhu Kempe GowdaMain Road, Next to Nagavara, Bengaluru, Karnataka 560045, India
Apply Now