Master's Abroad Loan Guide: Country-Wise Loan Details

Are you going for your Master’s abroad, but worried about the money? You’re not alone! There are many Indian students with the same goal. Pursuing studies abroad is not just exciting but also financially challenging. That’s where education loans play an important role.

It’s quite challenging for students to understand which lender to consider for their master's abroad based on the country they wish to go to. In this blog, we’ll discuss the loan options available for studying in popular countries such as the U.S., U.K., Canada, Australia, and Germany.

Understanding Education Loans for Master's Abroad

• Education loans for Master's abroad are given by the lenders to support students to cover the cost of studying in foreign universities.

• The best feature of these loans is that they don't require any collateral, meaning you don’t have to pledge property or assets.

• Instead, lenders primarily focus on your academic performance, the reputation of the university, and the financial status of your co-applicant.

Top Lenders Offering Education Loans for Master's Abroad

• When it comes to pursuing a Master’s abroad, lenders prefer students who are going to top countries.

• Major countries like the United States, the United Kingdom, Canada, Australia, and Germany have several lenders to offer education loans. 

• Each lender has their own set of loan schemes with different interest rates, repayment terms, and eligibility criteria for different countries.

Education Loan for Master's Abroad in the US

The US is one of the top study abroad options for students who wish to pursue higher education. However, pursuing higher education in the US can be costly. An abroad education loan can be a good option to finance not only tuition fees but also your living expenses. There are two types of abroad education loans to study in the US.

• An Education Loan with Collateral: It requires the applicant to pledge the property for an education loan. Also known as a secured education loan. The property you pledge can be a house, flat, non-agricultural land, or liquid securities like Fixed Deposits, Govt Bonds. Based on the collateral, the lender determines the loan amount.

• An Education Loan without Collateral: It doesn't require the applicant to pledge collateral. Instead of collateral, lenders check the co-applicant’s income, credit score, and the student’s academic records. Based on this, lenders give the loan amount.

 Let’s see which lenders offer education loans for master's in the US.

Lender’s offering Secured Education loans in the US

Lender’s offering Unsecured Education Loans in the US

Education Loan for Master's Abroad for the UK

The UK is one of the top study abroad options for students who wish to pursue higher education. Lenders offer up to 100% of the loan amount, which covers tuition fees, living expenses, and all other expenses.

Lender’s offering Secured Education loans in the UK

Lender’s offering Unsecured Education Loans in the UK

Education Loan for Master's Abroad in Canada

Canada is one of the top study abroad options for students who wish to pursue higher education. Getting an education loan in Canada is easy for students who wish to pursue their master's abroad.

Lender’s offering Secured Education loans in Canada

Lender’s offering Unsecured Education Loans in Canada

Education Loan for Master's Abroad in Australia

Australia is one of the top study abroad options for students who wish to pursue higher education. With top universities and a variety of study programs, Australia attracts many international students every year. But studying a master's in Australia is expensive. Taking an education loan can provide financial support. 

Lender’s offering  Secured Education loans in Australia

Lender’s offering Unsecured Education Loans in Australia

Education Loan for Master's Abroad in Germany

Germany stands out as one of the top countries for international students who want to pursue their master's. The main advantage why students want to studying in Germany is the zero tuition fees at public universities, which attracts students. Yet, while tuition fees are not available, living expenses can be a burden for students. So, education loans can offer financial support, helping students manage their costs. 

Lender’s offering Secured Education loans in Germany

Lender’s offering Unsecured Education Loans in Germany

Expenses covered by the Education Loan for Master's Abroad

Many of the students think an education loan covers only tuition fees. But it's not true. The following are the expenses covered if the student takes an education loan for a master's abroad:

• Tuition fees

• Living Expenses

• Purchase of books

• Travel expenses

• Purchase of a Laptop/computer

• Examination fees

• Caution fee

• Health insurance    

Eligible Courses...

• STEM

• Management

• MCA

• MS

• MBA

• Law

Most of the lenders accept these courses to give an education loan to the students who want to go to the US for their master's course.

Processing Fees for Education Loan for Master's abroad

The processing charges for an education loan for a master's abroad vary from lender to lender. Here are the fees lenders charge:

• Public Banks: Rs 10,000 + GST

• Private Banks: 1% - 2% of the loan amount

• NBFCs: 1% - 2% of the loan amount

Eligibility Criteria for Education Loan for Master's abroad

• Applicant should be an Indian citizen or an NRI

• Applicant should have one of their parents, working siblings, spouse (if married), or parents-in-law as their co-applicant

• The applicant should have an admission letter from the university.

• The co-applicant should have a steady income and a CIBIL score of at least 700.

Documents required for an Education Loan for a Master's abroad 

Basic documents of the applicant and the co-applicant to be submitted:

1. KYC documents of the applicant and co-applicant, like Aadhar Card, PAN Card.

2. Proof of residence

3. The latest salary slips for the 3 months of the co-applicant

4. The latest bank statements of the 6 months of the co-applicant

5. The latest 2 years of ITR

Academic Documents of the applicant to be submitted:

1. Mark sheets of 10th, 12th and degree

2. Proof of admission

3. Fee structure

4. Entrance exam score card

Note:  All the documents should be self-attested.

How To Apply For an Education Loan

Applying for an education loan online is easy and convenient through government banks, private banks, or NBFCs. Here’s a step-by-step guide:

• Fill out the WMS Student Loan Common Application Form online or request a callback from a financial officer to begin the process.

• A financial officer will reach out to check your loan eligibility. Provide all necessary details.

• Our financial officer will check the interest rates and other terms among various lenders and will suggest the best option based on your eligibility.

• Upload your documents on the WeMakeScholars portal, or you can submit them directly to the bank.

• Once your documents are verified, your education loan will be processed. You will get a decision within 15 - 20 days in public banks, 2 - 6 days in private banks or NBFCs.

• After receiving the loan sanction letter, sign the agreement.

Conclusion

Getting an education loan for a master's abroad can ease the burden of studying in a foreign country.  Lenders offer different loan options across popular countries like the US, the UK, Australia, Canada, and Germany for students who wish to pursue their master's abroad based on their needs. Whether you're going for a secured loan or an unsecured loan, it is very important to compare interest rates, loan terms, and eligibility criteria among the lenders to choose the best option. By following the right steps, you can make your master's dream a reality.