Indian students comprise a large segment of the US international student population and they, like so many of their peers, have been driven in recent years to seek out international student loans. As the cost of higher education in the US continues to rise – at an annual average of 6.2% over the last 20 years it easily outpaced the country’s 2.8% general inflation rate – more and more Indian students are turning to loans to finance their education.

Indian international student loans can help resolve the proof of funds dilemma and can also cover the gap in case additional finances are needed to help fund their education.

Proof of Funding

Many international students must prove that they have sufficient funds before they can be issued an F-1 visa. Demonstrating solvency is complicated by the fact that only a handful of forms of documentary evidence are accepted most universities.

A typical Indian student has three options: 1) provide evidence of sufficient personal wealth; 2) university funding [e.g., scholarships]; or 3) pursue a student loan. If option #3 is chosen, Indian students looking to secure a loan through an Indian bank may face an unusual wrinkle. American universities require a student to prove their solvency before they formally admit students and Indian banks typically do not authorize education loans until the student has formally been admitted. Hence a Catch-22 exists.

Fortunately, student loans for Indian students can easily resolve this dilemma. Such loans can be secured through a US lender where they will provide conditional loan approval that the student can provide to their US institution. While many US colleges and universities will accept this as a way to show proof of funding, be sure to check with your institution since there are schools who will not accept this as a valid way to prove sufficient funds.

  • Funding Gap

For Indian students who have already been issued their F-1 visa, there is a chance that students may find that their total costs exceed the total amount of money they have on hand. In cases like these, student loans are available to help cover the gap.

Whether students need a loan to cover a past or current semester, Indian students can easily apply for a loan that will cover up to the total cost of their education minus any other aid they may have received.

Indeed, rates for Indian international student loans, like loans for any other student, can be quoted – and secured – online from the comfort of your own home in a matter of weeks whether in India or in the US.

While such loans do require a US citizen or permanent resident with good credit, they can otherwise be secured with no collateral requirements and flexible repayment terms.