Education Loan in USD vs INR: Understanding the Role of APR | GyanDhan

by williamair1

When discussing education loans, you may come across several lenders, including banks, NBFCs, and international lenders like MPOWER Financing. The main dilemma begins when you realize that international lenders offer loans in foreign currencies such as US Dollars (USD). Seeking opinions, you may hear that taking a loan in INR is preferable because USD loans come with higher costs, and it would be easier to repay an INR loan if you earn in USD. Others might argue that USD loans are better since they avoid FOREX charges and Tax Collected at Source (TCS). This debate has been ongoing, but a crucial aspect often overlooked is the Annual Percentage Rate (APR). Today, let’s explore whether USD or INR education loans are better by considering the APR.

This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/usd-vs-inr-education-loans