MPower Financing Education Loan: A Complete Guide

The steps to apply for an MPower education loan could not be more easy and simple. Here is a quick breakdown of the application process:

• Check the loan eligibility on GyanDhan’s website. To start with the MPower application process, check your loan eligibility or request a callback. 
• Once eligible, fill the online application form for MPower student loan. 
• After filling the application form, students will get the conditional loan offer immediately.
• Upload the documents on GyanDhan’s online portal for verification purposes. To familiarize themselves with the process, students can watch a short intro video by MPower and complete a short assessment form. 
• After verifying the documents and application, MPower will sanction your loan. Students can also request a visa support document to obtain an I-20 from the university if required.
• The loan is disbursed when the student receives an admission letter from the school. Upon receiving the confirmation of enrolment, the lender directly transfers the amount to the university. 

Read more on education loans from SBI, Bank of Baroda, ICICI Bank, Axis Bank, HDFC Credila, Prodigy Finance, InCred, Avanse.

However, for an Indian student, the process may be a bit confusing, primarily because the US student documents and the Indian student certification systems are different from each other. On top of it, the figures for the loan would be in USD. Therefore, calculating the numbers in INR and planning the finances accordingly will also be a cumbersome task. 

Therefore, to ease the process, you can apply for a loan via GyanDhan. With GyanDhan’s assistance, you can check your loan eligibility, apply for a loan, submit the relevant documents, get your loan sanctioned in no time, and also ensure timely disbursements - all this without shelling out a single penny. The entire process can be completed with a few clicks of the mouse from the comfort of your home. 

A student is required to submit all the required documents to complete the education loan application process. This step becomes hands-down easy if the loan is applied via GyanDhan as we provide a customized document checklist. However, some of the documents required at a higher level are - 

This is a generalized document checklist for students admitted to graduate programs. Students admitted to undergraduate programs may have to submit a few additional documents. 

With MPower Financing, you can avail a lot of benefits which makes the education loan application as well as repayment process a cakewalk. Some of these benefits are:

Flexible Loan Amount

Since for MPower financing, ensuring loan benefits for its students is its primary objective, it offers many flexible loan amount options. The volume of the funds can range anywhere from US$ 2,001 to US$ 50,000. This is especially beneficial if the student requires a low loan amount. 

Read More About: Education Loan Without Collateral for Abroad Studies 

MPower Education Loan Rate of Interest 

The rate of interest charged by the company is fixed, that is, the rate of interest will not change during the loan, thus minimizing the financial burden on the student. International students can borrow at a fixed rate of interest which ranges between 12.99% (13.98% APR) to 15.99% (17.08% APR) as of January 2024. Additionally, the students will be eligible for an interest rate concession of 0.25% if they sign for autopay. If the students qualify for these interest discounts, the rate of interest will start from 12.74% (13.72% APR).

Margin Money

MPower Financing does not charge any margin money and covers 100 percent of the expenses incurred. The loan amount can be used to finance tuition fees, school supplies, and living expenses. 

Repayment period

The repayment period of a Mpower Financing loan is 10 years. The time period is ideal as it will not burden the student with high-value EMIs. Students can repay the amount early too as there are no prepayment penalty charges. There are interest-only payments during the study period and 6 months after graduation. The EMIs will be charged after the moratorium period ends (study period plus 6 months after graduation). 

MPower also has a Loan Payment Estimator which allows the students to calculate their estimated monthly payments along with the amount they will have to pay during their study period as simple interest. Furthermore, applicants can use GyanDhan’s EMI calculator for customized and specific results as the tool also takes into account the grace period, processing fees, disbursals, and different EMI options. 

Additional Benefits of Taking an MPower Education Loan

Here are some additional benefits you enjoy if you apply for an education loan from MPower:

• Building US credit history - After the visa changes which provide students with an increased OPT period, many employment opportunities have opened up for the students allowing them to stay longer in the US and earn in the USD. Living in the States would require students to take rented accommodation or open a US bank account, and it will be easier for them to undertake these essential tasks if they have a good credit history. Every time you make a payment to the MPower, your payment record is shared with the US credit bureaus allowing you to build a US credit history. This payment record is used to assess how you manage your financial responsibilities. 
• Easy loan payments - The students can set up auto payments from their US bank accounts. This can be done on the MPower Student Portal. This is helpful as the students will not default on their payments, further strengthening their credit history.
• Repay in the currency you earn - It is preferable to stay back in the country to repay the loan, whether you take the loan from an Indian lender or a US-based lender. This helps in repaying a bigger chunk of the loan amount because the earnings in CAD or USD would be substantial. This plays a major role in reducing the financial burden of the student. Additionally, this will help you save a lot on expensive wire transfers and fluctuating currency rates as well. 
• Path 2 Success - Along with education loans, MPower also provides career support through its program Path2Success. The students can get free feedback on their resumes and take up preparation sessions for interviews. Additionally, they offer internships and job opportunities to their customers. 

INR Loans vs USD Loans by MPOWER

Many students may perceive the risk-based pricing of MPOWER, at 13.72% APR, as high. A number of students might receive higher APRs due to factors such as low credit scores, program choices, or university selection, etc. This contributes to the development of a perception that INR loans are more favorable. However, to accurately compare INR loans with USD loans from MPOWER, one must consider the following factors:

• The initial rates for unsecured loans with cosigners, offered by competitors and appearing to be low at greater than 11.5-12%, may have experienced an increase during the graduation period over the last few years.
• An additional 2% to 6% is added for forex charges, covering expenses incurred during fund transfers to the university and at the time of repayment.
• 4. A range of 1% to 8% is factored in for various insurance charges.
• 5. An accounting of 0.5% to 2% is made for processing fees.

Considering all these things you will get that the APR of unsecured loans in INR with co-signer could exceed 16%.

Other Features

• For taking this loan, international students do not require a co-signer, collateral, or collateral history. 
• During the study period plus the additional 6-month grace period, the student will have to make interest-only payments. This helps decrease the future financial burden of the student. 
• The loan amount can be used for the past, present, and future semesters, which means the student can apply for the education loan in any year of the study. 
• MPower Financing covers a host of expenses, including but not limited to, tuition fees, housing, living expenses, insurance, and books. 
• MPower Financing works with more than 350 universities in the US and Canada. Since MPower disburses the loan amount directly to the concerned university, everything goes without a hitch.