Abroad Education Loans for STEM vs. Non-STEM: Cost Coverage, Eligibility & More

Students aspiring to study abroad can explore diverse programs at Top-Ranked Global Universities. According to the Organization for Economic Co-operation and Development (OECD), nearly one quarter of graduates across member countries complete degrees in STEM, while about one fifth pursue Business, Administration and Law. Health and Welfare represents around one sixth of graduates, with Arts, Humanities, Social Sciences, Journalism and Information accounting for a slightly smaller share, which reflects the technical emphasis of short cycle studies.

Irrespective of the chosen stream, abroad education loans are available through various lenders in both secured and unsecured options. However, loan amounts, processing time and conditions may differ.

STEM & Non-STEM Courses: An Overview

Before checking the loan options for STEM and non-STEM courses, it is important to first understand how these streams are defined and what distinguishes them.

While STEM and non-STEM courses differ in many aspects, their eligibility criteria for abroad education loans are largely common for both.

Criteria for Abroad Education Loans for STEM & Non-STEM Courses

Each financial institution, whether a public bank, private bank, NBFC, or international lender, has its own specific requirements. The following information provides a clear overview to help you understand the general eligibility norms:

• Nationality: Indian

• Age: Minimum 16 years; Maximum 35 years

• Educational Record: Good academic performance

• Qualification: Completed 10+2 (12th Standard) or Diploma

• Course Type: Graduation/Postgraduate Degree or Postgraduate Diploma in Professional Education

• University Applied To: Listed, Recognized, and Accredited Institutes in India and Overseas

• Loan Sanction Basis:

  1. Pre-admission sanction

  2. Entrance exam scores (e.g., GRE, GMAT)

  3. 12th/HSC results

  4. Confirmed admission

• Co-borrower: Father, Mother, Brother, Sister, Spouse (Husband/Wife), Grandparents, Parents-in-law, Maternal/Paternal Uncle

• Security:

  1. Property (House or Flat)

  2. Fixed Deposit

Note: While STEM courses may sometimes receive slightly higher unsecured loan limits due to perceived higher earning potential, the core education loan eligibility remains the same for both STEM and non-STEM programs.

STEM vs Non-STEM Courses Abroad Education Loan Features

Here are the distinguishing features of STEM and Non-STEM courses in the context of the foreign education loan process and the preferences shown by financial institutions.

As you can see, lenders tend to offer slightly better terms for STEM courses than for non-STEM courses. The question is, why? We will explain the reasons in the next section.

Why Banks offer Abroad Education Loans for STEM Courses easily?

Banks tend to offer abroad education loans for STEM (Science, Technology, Engineering, and Mathematics) courses with greater ease compared to non-STEM courses. This preference is primarily due to the higher employability and earning potential associated with STEM fields. Lenders perceive the STEM students as lower-risk borrowers, confident in their ability to repay loans promptly.

Key Reasons for Banks' Preference for STEM Courses:

• High Employability and Earning Potential

  STEM graduates are in high demand across various industries, leading to higher starting salaries. This financial stability assures banks of the borrower's ability to repay the loan.

• Lower Default Risk

  The consistent demand for STEM professionals globally reduces the likelihood of unemployment, thereby minimizing the risk of loan defaults.

• Higher Loan Amounts

  Given the anticipated higher earnings, banks are more inclined to offer larger loan amounts for STEM courses, often without requiring collateral.

• Preference for Reputed Institutions

  Admission to top-tier universities enhances the loan approval chances for STEM students, as these institutions are associated with better employability outcomes.

We will now look at the different types of lenders that offer abroad education loans for both STEM and Non-STEM courses.

Types of Lenders offering Abroad Education Loans for STEM & Non-STEM Courses

Financing higher education abroad has become more accessible with the wide range of lenders offering specialized education loans. These lenders can be categorized into Public Sector Banks, Private Banks, Non-Banking Financial Companies (NBFCs), and international financial institutions.

Public Sector Banks

Banks such as the State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), and Union Bank of India are among the most trusted sources for overseas education loans. 

They are known for competitive interest rates and structured repayment terms. Public banks often prioritize STEM courses because of their higher employability outcomes, though they also support non-STEM aspirants.

Private Sector Banks

ICICI Bank, Axis Bank, IDFC First Bank and Yes Bank provide faster loan approvals, flexible repayment schedules, and larger unsecured loan amounts. 

They are widely chosen by students admitted to globally recognized universities, irrespective of whether they are pursuing STEM or non-STEM programs.

Non-Banking Financial Companies (NBFCs)

NBFCs such as Credila, Avanse, Auxilo, Tata Capital, Poonawala Fincorp, Edgro Finance and InCred Education Loans have gained prominence by offering student-friendly solutions. 

They often extend loans with greater flexibility in eligibility, making them particularly beneficial for students pursuing non-STEM programs that may not always be prioritized by traditional banks.

International Lenders

Several international lenders and financial institutions collaborate with universities abroad to extend collateral-free loans. These options are especially valuable for students who may not have assets to pledge.

Several financial institutions extend both secured and unsecured loans to students pursuing STEM and non-STEM courses. The next step is to understand whether the documentation required for these courses shows any variation.

Documents Required for STEM & Non-STEM Abroad Education Loans

Lenders follow a structured process when approving education loans for studies abroad. The required paperwork is similar for both STEM and non-STEM courses, and an abroad education loan documents list helps students ensure all necessary academic, financial, and admission-related papers are submitted for smooth processing.

Proof of Admission

An official admission or letter from a recognized foreign university is mandatory. This establishes the course details and confirms the student’s enrollment.

Academic Records

Mark sheets, degree certificates, and standardized test scores (such as GRE, GMAT, IELTS, or TOEFL) are required to demonstrate academic readiness and course eligibility.

Financial Documents

Co-applicant income proof, salary slips, bank statements, and income tax returns are necessary for assessing repayment capacity. In the case of secured loans, property documents or collateral papers are also required.

Identity and Address Proof

Documents such as Aadhaar, PAN card, passport, or driving license are commonly accepted. A valid passport is essential since it is directly linked to international study.

Additional Documents

Passport-size photographs, a completed loan application form, and in some cases, a statement of expenses for the chosen course may also be requested.

The documentation process does not differ significantly between STEM and non-STEM courses. The distinction lies mainly in the ease of approval, as STEM applicants are often seen as lower-risk borrowers due to higher employability prospects.

Whether it is a STEM or a non-STEM course, ELAN helps students secure loan approvals with faster processing. Wondering how this is achieved? We will give you a closer.

How Élan Supports for STEM & Non-STEM Abroad Education Loans Processing?

Élan is dedicated to simplifying the education loan process for students pursuing both STEM and non-STEM courses abroad. Our comprehensive approach ensures that students receive timely financial support tailored to their specific needs.

Key Services Offered by Élan:

• Wide Range of Lender Partnerships

  Élan collaborates with over 20+ leading banks and financial institutions, including SBI, ICICI, and Axis Bank, to provide both secured and unsecured loan options.

• Customized Loan Solutions

  Loan plans are personalized based on the student's course, study destination, and financial profile, ensuring optimal loan amounts and terms. 

• Streamlined Application Process

  Élan offers a paperless, guided application system that significantly reduces processing time and effort. 

• Pre-Admission Assistance

  Students can initiate loan applications even before securing admission, allowing for better financial planning.

• No Service Charges

  Élan ensures that students do not incur additional costs, making the loan process more affordable.

If you are looking to understand how to get study loan for abroad, Élan Loan experts can help you identify the most suitable options for both STEM and non-STEM courses. We will be happy to assist you at every step of the process.

STEM & Non-STEM Abroad Education Loans FAQs

1. How do lenders assess risk for STEM & Non-STEM Abroad Education Loans?

Lenders evaluate risk based on global demand for the chosen field, employability statistics, and the student’s intended university. STEM courses are often seen as lower risk due to strong technical job prospects, but all courses undergo careful risk assessment.

2. Can loan eligibility for STEM & Non-STEM Abroad Education Loans change during the application process?

Yes. Changes in admission status, co-borrower details, or financial circumstances can affect eligibility. Lenders may reassess applications before sanctioning the loan.

3. Are there specific repayment incentives for STEM & Non-STEM Abroad Education Loans?

Some banks offer interest rate reductions or flexible repayment options for students who maintain academic performance or choose courses with high employability potential.

4. How do international universities’ fee structures impact STEM & Non-STEM Abroad Education Loans?

Lenders consider tuition fees, living costs, and program duration when approving the loan, ensuring the sanctioned amount adequately covers the total program cost.

5. Can students combine scholarships and STEM & Non-STEM Abroad Education Loans?

Yes. Scholarships can reduce the loan principal or interest burden, and most lenders allow partial or full adjustment against awarded grants.

6. What support do lenders provide if a student faces financial difficulties after securing a STEM & Non-STEM Abroad Education Loan?

Many lenders offer moratorium extensions, restructuring options, or deferred payments to help students manage repayments in case of unexpected challenges.