In-Principle Sanction Won't Satisfy University

Banks often issue a quick "in-principle" or "provisional" sanction that universities and US immigration may reject as insufficient proof of funds. Only the final sanction letter counts.

SEVIS Fee Not Covered in Loan

Many students assume the SEVIS fee (USD 350) is included in the education loan. It is not — most Indian banks do not disburse funds for government visa fees. This surprises students close to the visa interview date.

Moratorium Interest Is Not Zero

During the course duration + 6–12 months moratorium, simple interest continues to accrue on the outstanding loan. On a ₹50L loan over a 2-year Master's, this can amount to ₹8–12L in additional interest before you even start paying EMIs.

Section 129 (formerly 80E) Only Under Old Tax Regime

The interest deduction benefit under Section 129 (formerly 80E) is exclusively available under the Old Tax Regime for FY 2025-26. If your family has opted for the New Tax Regime, this benefit is completely unavailable.

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Education Loan for USA Decoded.

Everything Indian students need to know about financing a US degree — from I-20 requirements to lender selection and visa compliance.

Last reviewed: 23 Aug 20265 lenders comparedSBI / Credila (formerly HDFC Credila) / ICICI

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Key Facts

Interest Rate

8.75% – 13.26% p.a.

Processing Fee

0% – 2% of loan amount

Max Loan

Up to ₹1.5 Cr

Approval Time

15 – 30 days