MPOWER Education Loan

✓ Interest rates, Loan amount & Eligibility

✓ Indian lenders vs Foreign Lenders

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Table of content

  1. MPOWER Education Loan Products
  2. Indian Unsecured Education Loan Lender Vs Foreign Lenders
  3. Why choose Indian lenders over MPOWER Finance?
  4. WeMakeScholars
  5. FAQ's
  6. Need Help? Ask Here!

Mpower is an international NBFC (Non-Banking Financial Company) that provides education loans to international students without any collateral, co-applicant / co-signer. But its student loan funding services are only for students studying in the United States of America and Canada.

Parameter

Values

Loan Amount

Up to $100,000

Interest rate

Graduate - up to 13.98% USD

Undergraduate - upto 15.01% USD 

A discount of 0.25% is provided for auto-signing up

Processing Fee

5% of the loan amount

Moratorium Period / Grace Period

Course duration + 6 months

Partial simple interest needs to be paid

Repayment Duration

10 years

Co-applicant / Co-signer 

Not required

 

MPOWER Education Loan Products

The company offers the following loan products:

  • Undergraduate Loans
  • Graduate Loans
  • Professional development/Training programs

Undergraduate Loans:

One of MPower Finance's key loan products is the Undergraduate Student Loan, which is designed for students who are pursuing a bachelor's degree. This loan can be used to cover the cost of tuition, books, and other education-related expenses. The loan has a fixed interest rate, and repayment typically begins six months after the course duration.

Graduate Loans:

Another product offered by MPower Finance is the Graduate Student Loan, which is designed for students who are pursuing a graduate degree. This loan can also be used to cover the cost of tuition, books, and other education-related expenses. The loan has a fixed interest rate, and repayment typically begins six months after the course duration.

Professional Development / Training Programs:

MPower Finance also offers a Professional Development/Training program Loan for students who are enrolled in vocational or professional development programs. This loan can be used to cover the cost of tuition, books, and other education-related expenses. The loan has a fixed interest rate, and repayment typically begins six months after the course duration.

Indian Unsecured Education Loan Lender Vs Foreign Lenders

For the USA

Features

   MPOWER Education Loan

Indian Lenders for Unsecured Education Loan

Loan Amount

Upto 100,000 USD

Upto 1 Cr without collateral

Interest Rate 

Graduate - up to 13.98% USD

Undergraduate - upto 15.01% USD 

Starts from 9.55% INR*

Processing Fee

5% of the loan amount

1-2% of the loan amount

Moratorium Period 

Course duration + 6 months

Partial simple interest needs to be paid

Course duration + 1 year 

Repayment Tenure 

7 to 10 years

Up to 10 Years 

 

For Canada

Features

MPOWER Education Loan

Indian Lenders for Unsecured Education Loan

Loan Amount 

Upto 100,000 USD

Upto 1 Cr without collateral

Interest Rate 

Graduate - upto 13.98% USD

Undergraduate - upto 15.01% USD 

Starts from 9.55% INR*

Processing Fee

5% of the loan amount

1-2% of the loan amount

Moratorium Period 

Course duration + 6 months

Partial simple interest needs to be paid

Course duration + 1 year 

Repayment Tenure 

7 to 10 years

Up to 10 Years

 

*USD vs INR interest rate comparison is shared below in the article.    

This is a very concise comparison between MPower Education Loan and Indian Unsecured Education Loan Lenders, The point here to be noted is that, since MPower is a USD lender therefore, the interest rate charged by it will also be calculated in Dollars, most of the students overlook this fact and fall prey to the currency conversion rates.

Make your education abroad dreams a reality with our loans.

Why choose Indian lenders over MPOWER Finance?

Indian students planning to take education loans to pursue their higher education in top colleges and universities in the United States or Canada should be aware of the reasons why they should prefer Indian unsecured education loan lender over MPower Finance:

  • Lower Interest Rates
  • More Flexible Repayment Options
  • Tax Benefits
  • Processing Fees
  • Loan Insurance
  • Currency Fluctuation
  • Processing and Disbursal Time 
  • Interest Subsidy Scheme
  • Familiarity with Loan Market

Lower Interest Rates:

Indian lenders may offer lower interest rates starting from 9.55% on education loans compared to MPower Finance where the interest rates are upto 13.98% that too in USD.  Since the rate of interest is high already, currency exchange rates will increase the final repayable loan amount even higher, when compared to Indian lenders.

More Flexible Repayment Options:

Indian Lenders often offer more flexible repayment options up to 12 years, such as the ability to defer payments and make the interest-only payment during moratorium periods. Whereas international lenders provide only 10 years. Hence Indian lenders make it easier for students to manage their loan payments, especially in cases of financial hardship.

Tax Benefits:

Indian borrowers will be able to take advantage of tax benefits on education loans from Indian lenders. For example, under section 80E of the Indian Income Tax Act of 1961. The interest paid on education loans is eligible for income tax deductions. This can help to lower the overall cost of the loan. 

Processing Fees:

Indian lenders may charge lower processing fees i.e,  1% - 2% of the sanctioned loan amount, on the other hand, MPower Finance charges 5%. This can result in lower overall loan costs for the borrower.

Loan Insurance:

Indian lenders may offer loan insurance options that can help protect borrowers in case of unforeseen events such as job loss or disability. These options may not be available with foreign lenders like MPower Finance.

Currency Fluctuation:

Indian borrowers who are repaying loans in foreign currency may face currency fluctuation risk. While repaying an education loan from an Indian lender, the borrower will be repaying the loan in Indian Rupees, which eliminates the currency fluctuation risk.

Processing and Disbursal time:

Private Banks and NBFCs in India will sanction the education loan within 2-6 days of document submission if applied through WeMakeScholars.   will have faster processing and disbursal time than foreign lenders such as MPower Finance, this could be beneficial for students who are in need of funds quickly.

Interest Subsidy Schemes:

Indian students will not be eligible for interest rate subsidy schemes when taking a loan from foreign lenders like Mpower. It is always advisable to take a loan from Indian lenders as these interest rate subsidy schemes can waive off up to 100% of the interest during the moratorium period.

Familiarity with the Local Market:

Indian lenders may have a better understanding of the local market and the specific needs of Indian students and families. This could result in more tailored loan options and better customer service.

Hence Indian lenders are quite beneficial compared to foreign lenders, but there are multiple Indian lenders and it can be a very complicated process to choose the perfect lender suitable for your profile. 

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WeMakeScholars

WeMakeScholars is an initiative funded and supported by the Government of India, under the Digital India Campaign by the Ministry of Electronics and Information Technology. Our aim is to provide funding solutions to students who lack proper funds for their higher education in India or abroad.

At WeMakeScholars a professional financial officer will be assigned to your profile who will help you to find an education loan product that is suitable for your profile free of cost to start your education loan process request a call back in WeMakeScholars.

Benefits of WeMakeScholars

Expert Guidance: WeMakeScholars offers a dedicated relationship manager to assist you with a reliable and efficient education loan process. They will be your point of contact for any queries and ensure a smooth application process.

Rate of Interest Negotiation: WeMakeScholars can help students negotiate a lower interest rate for unsecured loans, potentially reducing it by 2% from the lender's initial quote. This can help students save money on the loan.

Experience in Complex Cases: WeMakeScholars has a wealth of experience in handling complex cases involving multiple parties, which can sometimes make the loan application process more challenging.By using WeMakeScholars, students can be assured that their loan application will be handled by experts who have the knowledge and experience to navigate any obstacles and secure a loan for them.

No Service Charge: WeMakeScholars offers its services at no cost to the students, and the support will be continued until the loan is fully repaid. 

Transparency: WeMakeScholars will keep you updated on the status of your loan application and ensure you understand the process without any confusion. They are always happy to answer any questions you may have. They want to make the loan application process as simple and easy as possible for you.

Cashback Provided: WeMakeScholars provides an incentive for students who apply for a study abroad loan through their platform. This includes a cashback reward that is added to the initial disbursement of the loan. The maximum cashback amount that can be received is INR 3000.

Process of Educational Loan through WeMakeScholars

Step 1: Contact WeMakeScholars, by either requesting a callback or filling out a common application form.

Step 2: In order to secure an education loan, you should provide all the necessary details to the assigned financial officer. This can be done by calling the office and discussing your loan requirements. Once the financial officer has analyzed your loan details, they will suggest and connect you with appropriate lenders that meet your financial needs.

Step 3: Once your financial officer has connected you with several suitable lenders, you can review and compare their offers. After considering the various options, you can pick the lender that you find most suitable and inform your financial officer of your choice.

Step 4: After you have selected a lender, your financial officer will provide you with a list of documents that are specific to your profile. It is important that you gather and submit all of the required documents to the bank or lender as soon as possible. This will help ensure that the loan application process goes smoothly and quickly.

Step 5: With the necessary documents submitted and the loan application process in motion, it's now time for you to relax and let your financial officer take care of the rest. You may receive follow-up calls from the lender or your financial officer during the loan process, but you can handle them at your convenience. You can rest assured that your financial officer will manage the loan process efficiently and keep you updated on the progress.

Step 6: It typically takes around 7 working days for the lender to approve and sanction the loan. Once your loan is approved, you will receive a loan sanction letter which will include all the details of the loan such as the loan amount, interest rate, repayment period, and other terms and conditions.

Take the next step towards your education abroad with a call for our help.

Education Loan FAQs

  • How to get a loan from MPOWER?

    To apply for a loan from MPOWER, you will need to first create an account on their website, and then submit an application. Once your application is submitted, MPOWER will review it and determine your loan eligibility. If you are approved, you will then be able to review and accept the loan terms and disbursement options.

  • Who is eligible for an MPOWER loan?

    In order to qualify for a loan from MPOWER, the applicant must be enrolled in, or applying to, a university or higher-level educational program that is supported by MPOWER. It's worth mentioning that even if the university application is still in process, one can still apply for the loan, but the loan amount will not be granted until the acceptance letter is submitted. A good credit score will add value to your profile, these are the basic eligibility for everyone.

  • What is the maximum loan repayment term MPOWER?

    The maximum loan repayment term for MPOWER loans is 10 years. Whereas Indian lenders provide up to 15 years of loan repayment duration, request a callback to WeMakeScholars to initiate your education loan process with Indian lenders.

  • What is the MPOWER interest rate?

    MPOWER uses a variable interest rate model, which means that the interest rate can change over time. The interest rate is typically based on the London Interbank Offered Rate (LIBOR) plus a margin by MPOWER. Currently the interest rate is upto 13.98% for Graduates and upto 15.01% for Undergraduates.

  • Does MPOWER finance cover living expenses?

    Yes, MPOWER finances can cover living expenses in addition to tuition and other education-related expenses. But all the cost coverage is subjected to the i20.

  • Can I cancel my MPOWER loan?

    It is possible to cancel an MPOWER loan, but the process and the timing for doing so will depend on the terms of the loan and the stage of the loan process.

  • What are MPOWER scholarships?

    MPOWER provides multiple scholarships such as Monthly Scholarship Series, MPOWER Global Citizen Scholarship, Women in STEM Scholarship, MPOWER MBA Scholarship, MPOWER Refugee Scholarship, and MPOWER 追梦永不息 Scholarship (for Chinese international students).

Our Education Loan team will help you with any questions

Naresh Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: