The number of Indian students opting to pursue education abroad has witnessed a steady rise, and this phenomenon can be attributed to various factors. Firstly, the globalization of education has opened up opportunities for students to explore international learning environments and gain exposure to diverse cultures. Additionally, many students aspire to pursue specialized courses that may not be readily available in India, driving them to seek educational opportunities overseas.
In recent years, there has been a remarkable surge in the number of Indian students pursuing higher education abroad. The rise in demand for foreign qualifications has consequently led to a significant increase in the demand for education loans in India.
In this article, let’s have a look at some reasons for an increased demand for education loan for students to study abroad.
Increase in the Number of Indian Students Preferring to Study Abroad
The number of Indian students choosing to study abroad has seen a steady upward trajectory. Countries like the United States, Canada, the United Kingdom, Australia, and Germany have become preferred destinations. So much so that the United States hosted over 1 million international students in the academic year 2022-23 and the number is only going to increase in the coming years. The allure of world-class education, exposure to cutting-edge research, and better employment prospects post-graduation contribute to the appeal of studying in these countries.
Globalisation of Higher Education
One of the primary driving forces behind the growing demand for education loans in India is the globalization of education. As barriers to international mobility diminish, students are drawn to the prospect of experiencing diverse cultures, gaining a global perspective, and accessing high-quality education that may not be readily available in domestic institutions.
Rising Aspirations and Awareness
The aspirations of the Indian youth have evolved, fuelled by increased awareness of global opportunities. Students are now more informed about international courses, prestigious universities, and the potential benefits of a global education. This growing awareness has led to a surge in applications to foreign universities, driving the need for financial assistance.
Significantly High Cost of Education
While the benefits of studying abroad are undeniable, the financial implications are significant. Tuition fees, living expenses, accommodation, and miscellaneous costs can add up to a substantial amount. To bridge this financial gap, students increasingly turn to education loans as a means to fund their overseas education. Taking out a study loan for Canada, the USA, the UK or any other big city is much more convenient now.
Flexibility of Curriculum and Promising Work Opportunities
Abroad education loans provide students with the flexibility to choose courses and institutions that align with their career goals. Unlike traditional financial instruments, these loans often cover not only tuition fees but also other associated costs such as accommodation, travel, and living expenses. This comprehensive coverage makes education loans an attractive option for aspiring students.
Specialised Loan Schemes
Recognizing the growing demand, financial institutions in India have introduced specialized loan schemes tailored to the needs of students pursuing education abroad. These schemes come with competitive interest rates, flexible repayment options, and extended moratorium periods. The availability of such specialized financial products has significantly contributed to the accessibility of education loans across diverse economic backgrounds. Non collateral education loan for abroad have also made it more accessible for students to get a loan.
Great Returns on Investments
Parents and students increasingly view education abroad as an investment in future returns. The potential for a global network, exposure to diverse perspectives, and enhanced career opportunities are seen as invaluable outcomes that justify the financial commitment.
These are just a few of the top reasons, there are many more. However, let’s move ahead and see how much it will cost you if you take an education loan.
The amount of loan for abroad education will vary depending on the bank or financial institution you apply to. As such there is no limit to the amount, however, each bank and institution has different criteria and rules. You can further learn more about the cost of the loan you will need as per your preferred destination by connecting with Élan Loans.
For now, let’s have a look at some of the most popular study destinations and the average cost of studying there.
United States
Tuition Fees: The average tuition fees for international students in the USA can range from INR 15 Lakhs to INR 40 Lakhs per year, depending on the program and institution.
Living Expenses: Living costs can vary significantly based on the city. On average, students should budget around INR 12 Lakhs to INR 15 Lakhs per year for On-campus accommodation, food, transportation, and other expenses. The off-campus accommodation will cost between INR 6 Lakhs to INR 8 Lakhs.
United Kingdom
Tuition Fees: Tuition fees in the UK range from INR 11 Lakhs to INR 30 Lakhs per year, with medical and arts programs often at the higher end.
Living Expenses: Living costs vary by location as per visa norms, it can cost GBP 1334 per month in London and GBP 1023 per month outside London (for up to 9 months). This will approximately be INR 10 Lakhs to INR 15 Lakhs for the living expense.
Canada
Tuition Fees: Tuition fees in Canada are generally lower than in the US and the UK, ranging from INR 9 Lakhs - 14 Lakhs per year.
Living Expenses: Living costs vary by city. As per visa norms, students need to issue a GIC certificate of CAD 20,635 (INR 12,60,000), towards accommodation, food, transportation, and living expenses per year.
Australia
Tuition Fees: Tuition fees in Australia range from INR 15 Lakhs to INR 20 Lakhs per year, depending on the program and institution.
Living Expenses: Living costs also vary by city. As per visa norms, students should have AUD 24,505 (INR 12 Lakhs - 14 Lakhs) towards accommodation, food, transportation, and living expenses per year.
Germany
Tuition Fees: Tuition fees in Germany are relatively low, especially at public universities, where some programs have no tuition fees. Private universities may charge tuition ranging from INR 7.5 Lakhs to INR 12 Lakhs per year.
Living Expenses: Living costs depend on the city. As per visa norms, Students need to open a blocked account of €11,208 towards accommodation, food, transportation, and living expenses per year.
New Zealand
Tuition Fees: According to New Zealand universities you need to budget your tuition fee between INR 12 Lakhs to INR 20 Lakhs.
Living Expenses: The cost of living in New Zealand will be NZ$ 20,000 (INR 10 Lakhs) per year.
Looking at these costs, it is now clear why the need for abroad education loans is spiking. You can learn more about the types of loans, eligibility criteria, how to apply, and much more with Élan Loans. If you too want a study loan for USA, UK, Canada, or any foreign country then feel free to connect with us to receive thorough guidance and get all your doubts cleared. We will also help you in processing your loan application.
So, visit us at Élan Loans today!
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