Study abroad scholarships for students

study-abroad-scholarships

Today, we are going to look at various ways to fund your education (BS, MBA or MS in USA) through scholarships or study abroad in select countries where education costs are nearly zero (yes, that is correct!).

One of the major challenges of studying abroad is the hefty tuition fee and living expenses that it entails. If we look at the cost of studying in countries like USA and UK, it can go up to 100,000 USD. Hence, it is not surprising that almost every student going abroad looks for financial support.

Without further ado, here is what we cover in this post:

  1. How can I get scholarship for studying abroad – Steps to find the right scholarship for yourself
  2. What are the scholarships available for Indian students – A list of generic and country specific scholarships that you can apply to
  3. Where can you study abroad for low fee – A list of countries where you can practically study for free

How can I get scholarship for studying abroad?

Before we jump into various scholarships, here is our advice on finding the right study abroad scholarship for yourself.

Finding a scholarship is a matter of planning and constant efforts.

  1. Explore the options in your college or grad school

    Contact your target school – usually, they have counselors, financial aid office and career centers which have extensive information available on the financial aid options available to students. You can email them at the time of admission and later on, visit them in person once you arrive on the campus. This ensures that you make a mark on them and they can help you out as soon as something is available.

    Additionally, most reputed schools offer some sort of scholarship options (usually need or merit based) which are worth checking out. Here are some examples-
    Dartmouth College International Student Scholarship, USA
    NYU Wagner Merit Scholarships, USA
    Clarendon Fund Scholarships at University of Oxford, UK
    Graduate Global Leadership Fellowship, Canada

  2. Search for external study abroad scholarships

    Google your heart out and find various scholarships that are offered by different organizations. For example, we have a list of scholarships available for Indian students right below in this article. Go through many such articles because it will help you in compiling a list of the relevant ones. It is important to mark your calendars with appropriate deadlines so that you don’t miss out applying on time!

  3. Prepare the documents

    Most scholarships ask for the resume, transcripts and proofs of admission which can be prepared in advance. However, it is important that you write each essay separately and make it customized to this particular organization. Just like any employer of college, they want to see that you value them and are genuinely interested in them. If you copy-paste your essays, they can figure it out and it lowers your chances of acceptance.

  4. Tell your story well

    The most important consideration of any application based scholarship is the essay. Make sure you spend some time thinking about it and editing it rather than doing a one-night-job on it. It is your chance to tell your story and if you tell it genuinely, they would want to fund you! – and isn’t that your end goal?

    Additional tip for the scholarship essays
    Highlight why you deserve this scholarship:
    Mention any disadvantages you have faced in completing your education – financial, social or personal
    Mention how would you use your education to make a bigger impact – no one wants to fund someone who has only self-interest at their core. They want to enable your education so that you can make a difference. Highlight how you would do that.

  5. Apply on time

    Apply to as many relevant scholarships as you can. Many scholarships also ask for interviews before announcing the final results. Usually, the interviews are centered around your application and checking whether you would put the scholarships money to good use. If you have done the essays diligently, interviews should be a cakewalk for you. However, it is important to not take them casually. After all, it is a question of real money at stake!

What study abroad scholarships are available for Indian students?

Scholarships are great to get if there are no strings attached. However, in my experience of 15 years, I have noticed there is no free lunch. Almost all the scholarships have some kind of strings attached – some are interest-free loans disguised as scholarship (eg. J N Tata Loan Endowment Scholarship), some are contingent on you studying particular stream of subjects, and most are available only to under-privileged families who have no other means of supporting their education.

So, while there appears to be a long list of scholarships advertised in the market, I have found only few to be feasible for an average candidate. Still, if you look closely and go through various forums and keep an eye on the news, you may find something that you can use.

Let’s look at various scholarships that Indian students can avail. Most of them vary in their extent as well criteria for qualification. So, go through the requirements individually and shortlist the ones that can be applicable in your case.

A. Indian scholarships for studying abroad

1. Inlaks Study Abroad Scholarships

How to apply: https://www.inlaksfoundation.org/scholarships/how-to-apply/
Applications: 15 February, 2023
Deadline: 30 March, 2023 at 12 noon

Scholarships are granted to bright young Indian students to read at top rated American, European and UK institutions for a full-time Masters, M.Phil or a Doctorate programme. The maximum funding given by the Foundation is USD 100,000 to cover programme tuition as well as scholars’ living expenses, healthcare, and one-way airfare.
The Foundation has joint scholarship schemes with Imperial College London, Royal College of Art (RCA) London, School of Oriental and African Studies (SOAS) London, University of Cambridge via the Cambridge Trust, Sciences Po, Paris.

Caveat: They do not fund engineering streams in all the schools. So, check before you apply.

2. Aga Khan Foundation International Scholarship Programme

How to apply: https://www.akdn.org/our-agencies/aga-khan-foundation/international-scholarship-programme
Deadline: 17 March, 2023

Scholarships are awarded on a 50% grant: 50% loan basis through a competitive application process once a year. The Foundation gives priority to requests for Master’s level courses but is willing to consider applications for PhD programmes, only in the case of outstanding students who are highly recommended for doctoral studies by their professors and who need a PhD for the fulfilment of their career objectives (academic or research oriented)

Caveat: Given to those who have no other means of financing their education.

3. JN Tata Endowment for the Higher Education

How to apply: http://www.jntataendowment.org/loan-scholarship-process
Deadline: 7 March, 2023

One-time loan cum study abroad scholarship ranging from INR 1,00,000 to 10,00,000 along with ‘Travel Grant’ and a ‘Gift Award’- which are linked to their academic performance.

Caveat: Requires you to take Thinking Skills Assessment
Good to know: The scholarship is offered at a simple interest of 2% per annum. However, if students repaid the loan within the specified time period (between the end of 3rd and 7th year), the trustees may waive the interest.

4. Narotam Sekhsaria Scholarship Program

How to apply: https://pg.nsfoundation.co.in/application-process/
Deadline: 16 March, 2023

While it is not purely a study abroad scholarship, it is designed for students of academic excellence for pursuing postgraduate studies at prestigious institutions in India or abroad. It is a merit-based interest – free loan scholarship.

5. National Overseas Scholarship Scheme by the Indian Government

How to apply: http://nosmsje.gov.in/docs/Guidelines%20for%20filling%20up%20online%20application-NOS%202021-22.pdf

Deadline: 31 March, 2023

Covers tuition and educational expenses for the following:

  1. Belong to Scheduled Castes, Denotified Nomadic and Semi-Nomadic Tribes, Landless Agricultural Laborers and Traditional Artisans.
  2. Scored 55% marks in under graduation (for those applying to Masters) or 55% in Post-Graduation (for those applying for Ph.D.).
  3. Be below 35 years of age.
  4. Have a combined family income that is less than Rs. 6,00,000.
  5. Not have more than one sibling who got the same scholarship.

6. Fulbright-Nehru MS and Doctoral Research Fellowships

How to apply: https://www.usief.org.in/Fulbright-Nehru-Fellowships.aspx
Deadline: May of the previous year for 2023-24 awards

Offers a monthly stipend, J-1 Visa Support, round-trip economy class air travel, Accident and Sickness Program and modest settling in allowance.

Candidate must have completed the equivalent of a U.S. bachelor’s degree with 55% aggregate marks. They should also have demonstrated leadership qualities and have 3 years of work experience apart from being committed to return to India and contribute to their community.

B. Country specific scholarships for studying abroad

Now, we take a look at some of the country specific scholarships that are given by the governments or agencies in a particular country. The purpose of these scholarships are to encourage incoming students in their schools. For example, British Council offers GREAT scholarship to people coming to study in UK.

1. British Council GREAT Education Full Scholarships

How to apply: https://www.britishcouncil.in/study-uk/scholarships/great-scholarships
Designed for graduate students from India to pursue their dreams of studying abroad. The British Council’s GREAT Education Scholarships have been set up in partnership with 25 leading UK Universities and offer full scholarships to the brightest students across India for various undergraduate and graduate courses in the UK.

2. INSEAD Deepak and Sunita Gupta Endowed Scholarships

How to apply: https://sites.insead.edu/schlmgmt/index.cfm?fuseaction=program_route&prog=mba
Designed for graduate students from developing countries who wish to pursue an INSEAD MBA Program but are constrained by their financial status. Selected scholars under this program receive financial assistance to the tune of EUR 25,000 towards their MBA degree.

3. Erasmus Mundus Joint Master Degrees Scholarships

How to apply: https://eacea.ec.europa.eu/erasmus-plus/emjmd-catalogue_en
EMJMDs are Masters level study programs at institutions across Europe and scholarships are awarded for these programs. Each program has a different deadline for scholarships and hence interested students should keep a check on the official scholarship portal

4. Great Wall Program

How to apply: https://www.china-admissions.com/chinese-scholarships/chinese-government-scholarship-great-wall-program/
This scholarship is aimed at students, from developing countries, who want to study or conduct research in China. It was established by the Chinese Ministry of Education for UNESCO to sponsor students and scholars

5. Orange Tulip Scholarship

Deadline: Varies but around 1 April 2023

How to apply: https://www.studyinnl.org/finances/orange-tulip-scholarship-programme/ots-india
Students applying for the scholarship should be an Indian resident and have been admitted to a Dutch university or be in the process of enrollment in The Netherlands.

6. Scotland’s Saltire Scholarships

How to apply: https://www.scotland.org/study/saltire-scholarships
It offers £8000, towards tuition fees for studying in Master’s programs across Scotland in the areas of science, technology, creative industries, healthcare, and medical sciences, and renewable and clean energy

7. The Heinrich Böll Foundation Scholarship

How to apply: https://www.boell.de/en/foundation/scholarships
€850 per month plus various individual allowances towards studying in Germany. Students applying for the scholarship should have excellent academic records and be able to show written proof of German language proficiency. They should also have demonstrated social and political engagement. This scholarship is given every year to graduates, and doctoral students of all subjects and nationalities. The deadline for application is March 1st

Note: It may look a meagre sum but remember that most of the German programs have already subsidized the tuition fee. Read this post to see if studying in Germany makes sense for you.

Where can you study abroad for low cost?

Believe it or not, it is possible to study abroad in few countries that heavily subsidize their education. If cost is the most important criterion for you, look at these countries first:

Germany

Germany is known for its excellent education, and you can practically study for free except paying a low annual administration fee, which is less than €350. See our interview with Sangram who studied at TU Munich.

Norway

You can study abroad for free in Norway for just a registration fee of about $50 if you can learn Norwegian! How cool is that? Oh and it is also known as the Land of the Midnight Sun.

Sweden

The reason Sweden interests me is that it offers a good option to work while you are in school – this can be very helpful in job hunt. If you have a European Union or Swiss passport, you can study in Sweden for free. Other nationals can expect to pay a few thousands dollars a year. And, PhDs are usually fully funded.

Brazil

Not only are Brazilians the coolest people ever, but also Brazil is a great place to study. If you can speak Portuguese, then you can study at one of its public universities by paying a very small registration fee. The only caveat is – you need to demonstrate your Portuguese skill level by taking a CELPE-Bras certificate.

Luxembourg

University of Luxembourg is incredibly international, and there is no language restriction. Apart from paying around a thousand Euros, it’s completely free to study for all students.

Also Read: Full Article on How to Study Abroad for Free

Recap – Finding Study Abroad Scholarships

So, there are a lot of options to avail if you wish to study abroad without breaking your bank. Make use of the various study abroad scholarships listed above.

Do note that many a times, you are able to land assistantships in graduate schools in USA which makes your education 25-100% free. But if you want to be more conservative in your financial planning, there are many countries where you can study for free.

How to Study Abroad for Free

Studying abroad is a dream for many students. Some may aspire to study abroad to experience a new culture, travel, and enjoy the freedom of being away from home. Others might be interested in the universities renowned globally, because of prospects of a better future than their own country. While the intention may vary, one common concern of everyone is the hefty tuition fees. What if you could study abroad practically for free?

Many students kill their dreams of studying in a foreign university based on the assumption that they will have to spend a fortune on tuition fees and living expenses. 

Completing a degree from countries like the US and the UK may cost around 100,000 USD for many courses, it is not the case with every country renowned for its quality of education. 

In this article, we will uncover how you can study abroad for free or at a highly subsidized cost.

Three ways to study abroad for free 

1. Select the study program and the country that offers free education

While this may seem obvious, many students are unaware of the fact that many universities all over the world provide free or highly affordable education to foreign students. 

For example, students who enroll themselves at Paris’ La Sorbonne only have to pay a modest registration fee of around 200 USD, and no tuition fee. The only limitation is that the applicant should be proficient in French.

The language barrier should not stop you from studying in non-English-speaking nations. 

Many such countries, like Germany, offer courses that are taught in English. For instance, the Technical University of Munich offers an M.Sc. in Software Engineering that has the language of instruction as English.

And you don’t have to spend a penny on tuition fees in most public universities in Germany.

2. Apply for scholarships

This is the most popular method of limiting your expenses for studying abroad.

There are hundreds of scholarships to assist students who aspire to study in foreign universities. Most of them, that offer significant help as money, are competitive. Organizations award these scholarships based on factors like past academic performance, relevant work experience, and involvement in social work. 

Scholarships might cover just the tuition fee, or may pay you a certain amount monthly or annually. We would recommend you to apply for most of the relevant ones, even if you are planning to study in countries that charge no tuition fee. Many organizations who give these scholarships even pay for your living expenses, which makes your education free.  

You can also apply for grants. People use interchangeably the terms grants and scholarships, but there is a slight variation. Grant is mostly need-based, while scholarships are usually merit-based. 

Also check: Full Guide on Study Abroad Scholarships for students 

3. Work and Study programs

Working along with your studies can help you earn and cover your expenses more effectively. It can also help you understand the working culture of the country you are studying in and gain insights before you apply for a job.

We recommend that you check the Labor Laws of the country you are planning to study in, since many countries have work restrictions for international students.

  • While many countries don’t allow you to work full-time, a nation like the United Kingdom allows you to work part-time if you are staying for over 6 months. 
  • If you enroll in an Australian university, the government allows student visa holders to work for 40 hours every two weeks during the duration of studies and full-time when you are on vacation.
  • In Germany, the authorities allow students to work part-time for not over 20 hours per week during an ongoing term. 

The option of working part-time, along with your studies, may look lucrative from a distance but most of these jobs won’t cover your expenses entirely. We recommend that you plan well and stay updated on the country-specific employment laws before finalizing the country for your education. 

10 countries for free study abroad

1. Germany

Germany is the most popular destination among international students who don’t want to spend big bucks while not compromising on the quality of education. 

The country has universities that are ranked among the best globally. 

Most of the German public universities don’t charge a tuition fee. The students only have to pay “Semester Contribution” at the beginning of each semester, which is around 250-300 euros. It covers administrative expenses, public transport, and certain academic study material.

Also Read: MS in Computer Science in Germany.

2. France

It is not as popular among international students tight on budget, as compared to Germany, but offers many courses which charge no tuition fee for national and foreign students. 

The universities teach most of the free courses in French. Be proficient in French if you aspire to enroll in these courses. 

You can pay for a preparatory school, before starting your course, to enhance your French proficiency if you are serious about studying in France.

3. Norway

Most universities don’t require you to pay tuition fees, irrespective of your nationality. Just like Germany, the students only have to pay a semester fee of around 50 USD.

The only downfall is that most of the undergraduate courses have Norwegian as the medium of instruction. English taught courses are still more common at the Masters and the Ph.D. level. 

4. Iceland

The four public universities in the country charge no tuition fee, but only a registration fee of around 600 USD per year.

5. Austria

Education is free or highly affordable in Austria for locals and EU/EEA students. The country requires foreign students to pay a higher fee than the nationals and is around 810 USD per semester.

The country’s capital, Vienna, was ranked 13th in the QS Best Student Cities 2019.

6. Finland

Most of the colleges in Finland charge no tuition fee. This applies to citizens of all nationalities. 

Many courses are now being offered in English, and the cost of living in the country is low compared to the US.

7. Czech Republic

Education at any public university is free for students who can communicate well in Czech. People who want to study in English would have to spend around (4450 to 13500) USD per year.

The living cost in the Czech Republic is around 9200 USD per year.

8. Greece

All the EU/EEA students are eligible for free education for most of the courses at public universities. Non-EU students are also eligible for affordable higher education and have to spend around 1700 USD per year. The country is one of the most affordable countries to live in within the European Union. 

9. Argentina

International students have to pay a low fee while the education is free for the locals at the public universities in Argentina. The private universities in the country may charge north of 5000 USD per year.

The country’s capital, Buenos Aires, was ranked 31st in the QS Best Student Cities 2019.

10. Spain

The international students, not part of the European Union, have to spend around 840 USD to 2800 USD per year at public universities. 

The EU students don’t have to pay high education fees like others. Spanish cities like Barcelona, Madrid are among the QS Best Student Cities. 

Conclusion

Many dream of studying in an international student destination and at a university that is renowned globally. Unfortunately, many students aren’t able to make this dream true because of a lack of funds.

We covered various aspects of studying at a foreign university and discussed a few options. 

Even though scholarships are helpful, most of them will not cover your entire expenses. The ones that take care of most of your expenditures have a very low acceptance rate.

If you are low on a budget or don’t want the burden of an education loan weighing you down mentally,  then you should take admission in any of the German universities. The country is respected internationally for its historical inventions and has renowned public universities that charge no tuition fee.

Book a call with Nistha if you are serious about studying abroad and need help with your application.

10 best study abroad loan providers – Indian banks, NBFCs or international lenders?

best-study-abroad-loan-providers

Let’s look at 10 best study abroad loan providers in today’s post.

After securing admission into your dream university abroad (MS, MBA or BS), you must organize the finances to cover the costly expenditures of a university, including living costs, tuition fees. Even though your parents might be able to aid you in covering the cost of education, taking a study abroad education loan to smoothly sail through higher education without any financial burden would be advantageous to you in many ways. 

The principal reason for students opting for an education load is to become financially independent and reduce the workload on their parents. Getting a loan can also be due to a lack of funds compared to the high cost of renowned universities in foreign countries. Sometimes, the savings are not enough to fund your education, so taking a study abroad loan becomes necessary.

Another major cause of students taking an education loan is when unexpected circumstances occur e.g., loss in parent’s financial matters. As a result, the loan money is used to fund the student’s education without any break.

Whatever the reason for opting for an education loan, maybe, once you must consider which loan to take. A mortgage is influenced by a number of factors, such as the interest rate, type of lenders, and the repayment policy. Therefore, a comparison and a list of outstanding loans are discussed here to help you in making an intelligent decision while taking an education load for studying abroad.  

Loan Providers for Study Abroad Aspirants

1 – Loan provided by National Banks

A significant advantage of taking a loan from national banks is that they have very low-interest rates compared to the other banking systems.

However, there are two main disadvantages to such loan schemes.

First of all, national banks need security if the loan amount is more than ten lakhs. It is often challenging for students to arrange security.

Secondly, hundreds of thousands of people apply for education loans via the national bank. As a result, the processing time is very long, making the entire process tiring. Moreover, such loans usually cover only the tuition fee with a minimal amount.

2 – Loan through Non-banking Financial Companies (NBFCs)

Major NBFC’s include Auxilio and Credila. NBFCs provide a good option for taking a loan; however, the main disadvantage is that the interest rate of the loan is very high. Moreover, some of the tax benefits are excluded in their loan schemes.

These companies mainly target student education loans. Therefore, they are much more focused on providing a good option for the applicant. They also offer highly customized loan plans for the students wishing to take a loan and study abroad.

The processing time of the NBFCs loan is very low. If your documents are complete, authentic, and verified, it is likely that the decision about the loan is made within 1 to 5 days. Options of unsecured loans, home service, and flexibility in the repayment schedule are offered as well.

3 – Loans by Non-Indian Lenders

Major non-Indian organizations offering a loan to the students are Prodigy Finance and Mpower. The details of these loans can be accessed very easily as they built very user-friendly applications and websites for easy accessibility. No security is necessary for many of the loans through foreign lenders. Moreover, the rate of interest is lower than the other lenders.

On the other hand, these loans have their disadvantage as well. Usually, the loans do not cover all of the expenses associated with studying and living abroad. About 15% to 20% of the fee and other expenses have to be paid by the students themselves. These companies do not enjoy the tax benefits as they are foreign-based. Even though the interest rate is low, the amount ultimately repaid can be much higher than the original amount due to the depreciation of the country’s currency.

The processing fee is very high for foreign loan lenders. This is because they work very rapidly and efficiently, so the charges are high. Moreover, only a restricted number of universities are covered by foreign lenders.

4 – Foreign Loans

Foreign loans have a very low rate of interest, from about 2% to 5%. Moreover, no collateral is necessary for the majority of these loans.

The disadvantage of a foreign loan is that it can only be taken on the guarantor’s name. You need to get someone very close to take out the loan on his or her name.

In order to conclude about the best choice between an Indian lender and a foreign loan provider, every applicant must determine and smartly calculate the total loan needed and rate of interest that you will have to pay according to the policies of each lender.

In international lenders, the interest rate is very low compared to the Indian banks. However, the currency keeps fluctuating over time so a final calculation cannot be made about the repayment amount. On the other hand, Indian lenders have a high-interest rate, but you will be able to calculate the definite repayment amount and plan the schedule accordingly.

Therefore, every applicant must decide between the Indian and international lenders, depending on their specific situation.

Also read: How to get a Study Abroad Education Loan?

Ten best study abroad education loan providers

A number of options, Indian banks, as well as international lenders, are available for students to get study abroad education loan. Some of them are (in no particular order):

  1. State Bank of India
    It offers a maximum loan of RS 20 lakhs with an interest rate of 10.5% per annum.
  2. Axis Bank
    It is a good choice for customized loans with an amount greater than 20 lakhs. The interest rate of Axis Bank is 13.7% above 7.5 lakhs.
  3. HDFC
    Applicants can take the maximum loan of 10 lakhs from HDFC, with the rate of interest being around 13% per annum.
  4. State Bank of Mysore
    It can lend a maximum of 40 lakhs to make your dream of studying abroad come true. The interest rate varies from case to case.
  5. Avanse Financial Services
    It has no limit on the maximum loan. Applicants can discuss their specific cases with the bank representative. The interest rate at Avanse Financial Services is 11.7% above ten lakhs.
  6. Prodigy Finance International Student Loans Company
    Some students face immense difficulty in getting a goal from Indian lenders. However, many global options are present in this industry. One of the most popular ones is the Prodigy Finance Loans Company. It has various schemes and options for applicants.
    The range of the loan offered is from 10 lakhs to 1.5 crores. No major security is required in this loan scheme, and the interest rate is from 11.57% to 13.57%. A big but is – they support only a limited schools.
  7. Credila
    It does not specify any limit on the loan.An interest rate of about 12% is present above the loan of 7 lakhs.
  8. Indian Overseas Banks
    It offers the maximum loan of 40 lakhs and an interest rate of 12.25% above 7.5 lakhs.
  9. Allahabad Bank
    With the limit of 50 lakhs loan, Allahabad Bank has an interest rate of 10.85% above 7.5 lakhs.
  10. Syndicate Bank
    It offers an optimum loan of 50 lakhs and an interest rate of 12.25% for the amount of more than 7.5 lakhs.

How to get a Study Abroad Education Loan?

study abroad education loan

Before understanding the process of getting an education loan to study abroad, you must be familiar with how it works. First of all, you cannot even apply for the student loan if you have not secured admission at a renowned school abroad.

How does education loan work?

The admission offer is necessary to asses your credibility for the study abroad education loan. After a total approximation of the education cost is provided by the education institute, the type of the program or degree you have applied to will play a role loaning. The prospects of your future are guessed depending on your degree, to determine if you will be able to repay the loans in the future.

Majority of the loan givers need a guarantor to ensure the loan will be returned over time. Education loan to study abroad is usually free from the condition of putting something valuable against the loan money to secure loan repayment.

Moreover, a student is never given the loan money directly. These loans are managed by the educational institute and its financial aid office. Thus, education loan for studying abroad is provided directly to the institution instead of specific students’ bank accounts.

Shall I go for study abroad education loan?

There is a myriad of benefits of getting an education loan to study abroad. Some of them are:

  1. A loan can make you financially independent. Major loans cover all of your expenses to study abroad, including living expenses, healthcare charges, and other expenditures.
  2. Study abroad loan offers easy repayments. The small repayment amount is decided over a longer period of time to make it easy for the students to repay the charges.
  3. Education loan also includes the option of applying for a scholarship, which can result in loan forgiveness or decrease in the amount of loan to be repaid.
  4. Many students are eligible to apply for the education loan to study abroad.  Applicants from undergraduate as well as postgraduate can apply.
  5. Loan processing time is very less so the students can make decisions about their admissions quickly well before the deadline of a particular institute.

What kind of loans are available?

Bank Name Study Abroad Education Loan Amount Interest Rates
State Bank of India (SBI) Up to ₹20,00,000 (20 Lakhs) 10.70%
HDFC BankUp to ₹36,00,000 (36 Lakhs) 14.88%
ICICI Bank Up to ₹3,00,00,000 (3 Crore) 11.50%
Punjab National Bank (PNB) Up to ₹1,00,00,000 (1 Crore) 11.10%
Canara Bank Up to ₹36,00,000 (36 Lakhs) 10.70%
Axis Bank Up to ₹75,00,000 (75 Lakhs) 13.70%
Bank of Baroda   Up to ₹20,00,000 (20 Lakhs) 15.00%
IDBI Bank Up to ₹20,00,000 (20 Lakhs) 9.50%
Avanse Financial Services Customized according to the applicant Custom

Also read: 10 best study abroad loan providers – Indian banks, NBFCs or international lenders?

What documents are required for study abroad education loans?

To apply for education loan for studying abroad, the applicants must have four main types of documents which are listed below:

1. Academic Documents

  • Offer letter from the college (in case of Bachelor’s) or graduate school (MS or MBA)
  • SAT Exams, LSATS, GRE GMAT, TOEFL, IELTS, other aptitude tests
  • Result cards of previous classes:
    • Class 10th
    • Class 12th
    • Equivalence certificate can be provided as well.
    • Graduation degree, if relevant.
    • Post-Graduation degree, if relevant.
  • Student Status Certificates (country-specific)
  • USA I-20 Certificate of Eligibility for Nonimmigrant Student Status
  • UK (England) CAS (Confirmation of Acceptance for Studies)
  • Australia GTE (Genuine Temporary Entrant) as per SVVF
  • Other student VISA and immigration letters
  • Scholarship for foreign education records (if any)

2. Financial Documents

  • Bank Statements
  • IT Returns copy
  • GST returns copy: (only in case of self-employed/business-oriented applicants/co-applicants)
    • Min: last two quarters, max: last year
  • Salary Proof:
    • Income tax computation statement (attested by CA and employer)
    • Salary Slips (Min: last three months, max: last nine months)

3. Collateral Documents

  • Loan against property:
    • Property deed/lease agreement/allotment letter by Govt./Municipal Authority/NOC from society-builder
    • Property tax statements
  • Loan against security:
    • DE-mat account statement (min: 12 months, max: 36 months)
    • Insurance policy receipt and original policy certificate
  • Loan against deposits:
    • Original FD/RD/Gold Deposit/Bond certificate
    • Interest statement: (min: 6 months, max: 24 months)
  • Loan against third-party guarantee:
    • Certificate of third party guarantee (with signature and verified by appropriate authority)

4. Identification/KYC Documents

  • PAN card (at least Co-applicant mandatory)
  • Aadhaar Card/ Passport Copy/Driving License/ Voter’s ID
  • Residence proof: rent agreement/residential lease/electricity bill-phone bill/LPG bill
  • PIO (person-of-Indian origin)/NRI (non-residential Indian) Identification documents

It is recommended to start preparing the documents early for the loan program to avoid any confusion at the last minute.

What is the process for getting a study abroad education loan?

Every major education institution has a student financial aid office assist the students in applying for education loan. The whole process is quite lengthy and exhausting, so it is better to apply as soon as possible. In this way, you will be able to avoid any problem in getting a loan to study abroad.

Generally, the following process is performed for getting a study abroad education loan:

  • Evaluate the list of degrees in which you are going to enroll in to make sure it is recognized by the loan provider
  • Asses the total amount of the loan you will be needing. Calculate the money that you will be able to arrange by yourself.
  • Compare the various student loans offered by a number of banks. This helps you in determining the best loan scheme according to your demand.
  • Finalize the bank, loan scheme, and the total loan amount as soon as possible. Apply for the load using the application form and contact the loan provider if you have any ambiguities about the process.
  • Once the loan is approved, a loan document is issued by the bank. This document will include every detail about the loan.
  • Sign the loan document if you are satisfied with the terms and conditions of the loan.
  • The loan amount will be disbursed by the bank according to the terms of the university.

Also, read: Study abroad scholarships for students

How to finance your MS or MBA education abroad

Discover multiple ways to finance your education abroad whether you are going for MBA or MS in USA. While the education in USA seems prohibitively costly at first glance, there is good news – there is high possibility of funding if you can get into a reputed grad school. You can finance your MS or MBA education abroad by understanding how it works.

In this post, we will discuss:

  1. How can Grad Schools help in financing your education abroad

  2. How can you avail external sources to finance your education abroad

Using Grad School funds to finance your education abroad

Universities and Professors in USA are funded by government and other agencies that invest in research; these funds are, in turn, used to support research students. Except when recession hits the funding grants, schools do try their best to support as many PhD students as possible. This is the reason why getting funding in PhD is easier than getting for Master’s because it is understood that PhD students are contributing more towards research.

Similarly Master’s in Engineering schools has more grants and research funding than Management oriented programs such as MIS/MEM and MBA. MBA is practically not funded because the goal of a MBA grad is to join corporate world and not research. Schools are more likely to fund students working closely in research.

1. Scholarships

These are the monetary awards given to students based on some qualifications, which could be academic excellence or extra curricular talent (sports related scholarships). There might be additional qualifications for these awards such as nationality, ethnic background, gender etc. These can be given in the form of a one-time cash award or be yearly covering your length of study. A school may have few such scholarships and they might ask for a separate application for these scholarships. Given the competition and scarcity of such awards, it is better to not bank on one. However, do find out about these especially if your academic record is excellent.

2. Tuition waivers

Sometimes, a school may offer full or partial tuition waiver to few students. It is usually awarded in conjunction with teaching or research assistantships (see below). A student still needs to pay other kind of fee (health insurance, administrative, library etc.) as tuition waivers only cover the tuition fee. These are most likely announced along with the news of your admission. For example, Case Western Reserve University typically offers 40- 50% tuition waiver at the time of sending the admission letter to its MEM students. In this case, the I-20 will only show remaining tuition fee to be paid by the student.

3. Assistantship

This is the most common form of funding offered by the graduate school to its admitted students especially PhD students. Getting an assistantship involves getting a cash stipend in return for some work that you do officially in the school itself. Normally, a student is allowed to work up to 20 hours per week. These are frequently combined with a full/partial tuition waivers in research oriented programs such as MS. However, assistantships offered in MIS/MEM programs may be only paid hourly and not include a tuition waiver (exceptions apply). There are three main kind of assistantships:

Teaching Assistantship

As per Virginia Tech, “graduate teaching assistants (GTAs) provide academic program support under the supervision of a faculty member. GTAs may assist faculty in the department in teaching undergraduate courses, including laboratory teaching assignments, or in providing other appropriate professional assistance, including grading examinations, problem sets, and/or lab assignments, setting up displays for lectures and laboratory sections, and preparing or maintaining equipment used in laboratory sections.”

Research Assistantship

As per Virginia Tech, “graduate research assistants (GRAs) are graduate students conducting academically significant research under the direction of a faculty member, who is generally a principal investigator on an external grant or contract. Graduate research assistantships are awarded by departments and professors who are engaged in research projects. Since GRAs are often funded by sponsored research grants, they may be paid at a higher stipend level than GAs or GTAs.” When I was studying at University of Illinois, Urbana Champaign, I received an RA by a Professor in Wireless Networking that paid me a cash stipend (for 20 hours per week work) along with a full tuition waiver. It meant that I did not have to pay any tuition fee and got a stipend that easily covered my living expenses and helped me save some money as well.

Graduate Assistantship

Again, as per Virginia Tech, “graduate assistants (GAs) are graduate students who provide academic and program support. GA responsibilities may be administrative in nature and consist of duties unrelated directly to teaching or research (such as academic advising, program planning, advising student groups, and assisting with the administration of student services offices). GA responsibilities may also be academic in nature and include grading examinations, problem sets, and/or lab assignments, setting up displays for lectures or laboratory sections, and preparing or maintaining equipment used in laboratory sections.”

4. Grants

These are similar to scholarships but awarded solely based on the financial need of a student. American universities may offer several forms of government-supported grants but these are usually available only to American citizens.

How to finance your education abroad using external funding

There are other types of funding that you can look for outside what is offered by the school. These include:

  1. External Scholarships/Fellowships – You can look for scholarships offered by private organizations external to your school as well. We have covered a detail of all study abroad scholarships available to Indian students in our blog. These are given to students with exceptional records and pass some qualifying criteria. To compete for these, you have to fill out a separate application which usually includes writing few essays explaining why you deserve the scholarship and how will you use it.
    All reputed universities often have a database of merit-based scholarship and fellowship opportunities available to its students.
    For example, University of Washington lists it at Student Financial Aid. Other than that, you can search on Internet for opportunities available to you. Scholarships In India 2016, Fellowships In India 2016, Internships In India 2016, Financial Aid For Education 2016, Students Grants For Schools And Colleges, Scholarships 2016 lists a lot of active scholarships in India.
    Fulbright Program is one of the most reputed scholarships available worldwide on a merit basis. As expected, there is a lot of competition for these awards.
  2. On-campus jobs – These include helper positions on campus such as the school library, dining hall, housing office, bookstore etc. and allow international students to work up to 20 hours per week. Students working in these jobs are paid hourly (usually sufficient to cover living expenses) and do not get tuition waivers. These are the least preferred form of funding since they do not usually involve building any valuable skills.
  3. Bank loans – Lastly, if nothing else works out, a student has to look for loans to finance her education. There are a lot of loan schemes now available but most of them are processed only once you receive an admit. Since loan processing takes a long time, it is advisable to start early.

What if I do not receive any funding from the university at the time of admission?

Do not write off your funding chances just yet. These days, schools have stopped giving funding except to PhD students but it does not mean that you cannot find one after being admitted. In most cases, Master’s (especially MIS/MEM) students will not receive funding at the time of admission.

First, you should have done some research on funding possibility at a school before deciding to apply for it. This includes contacting current students and recent graduates and asking them how did they fund their education. If you hear favorable funding news (let’s say multiple students tell you that they received some form of funding after reaching the campus), then you can still consider attending this school and hunting for funding after arriving on campus. The downside to this is that you still need to manage and show higher finances for your visa interview since you have no funding to show to the visa officer.

Many students take a loan if they cannot show sufficient personal funds and go to the school. There, they start looking for funding and return the loan as soon as they find it. This is what I did because I had not received any financial assistance when I was admitted to UIUC. However, it is a risk and you must do some background research on how likely it is to find funding before making such a decision. Again, if you have shortlisted schools after proper research, you would have applied only to the schools where you can manage the finances.

These are some ways how you can finance your education abroad. With a little proactive preparation, you can manage some sort of funding sooner or later.

We have covered funding, finances, employment opportunities, application strategies more comprehensively in MS BOOK: Smart Engineer’s complete guide to MS in USA

How does rising DOLLAR impact your study abroad plans?

Rupee has fallen more than 10% in past few weeks. As you or your children plan on applying to schools abroad, the natural concern is how will this impact you.

Here’s my take –

1. Financial Aid becomes more critical – Same school fee is now 10% more expensive for you. So, those who were implicitly relying on financial scholarships  to fund some or whole of their expenses can get more anxious now. This is tough at this point of the process but the good news is that it will only help you being more aggressive in pursuing scholarships. Our insider tips on securing financial aid just became more valuable. We are soon releasing the details of our counseling package, so don’t forget to keep an eye on our incoming posts because we are sure you will be interested in how can we help you easing your financial burden.

2. Career prospects in USA became more lucrative – Right now you are thinking about how much you will have to spend but the good news is that once you start earning (and that begins right when you secure scholarships and start earning stipend), the value of that will be so much more as well in India. So, I want you to look at the positive side and use this forex volatility to your benefit.

3. Let loans help you – Lastly, for those students who are all set to leave for Fall 2013 studies, it might be better to use loans to substantiate your finances. However, do not take out too much extra currency right now and wait for the rupee to stabilize a little if you need more money later on.

4. Be investment savvy and protect yourself against fluctuations – Now, if you are a little money savvy, you can make some investment that can protect you against further volatility in Rupee and Dollar. For details and formal advice, do ask your CA and Investment Advisor to help you plan your foreign expenses.

In the end, do NOT be disheartened. The rise in your expenses is going to be marginal in long run. So, keep focused on your original goal – STUDY HARD and SMART. BUILD a BRIGHT FUTURE. When you graduate and get an awesome job, all this will matter nothing in hindsight.

For specific inside strategies on how to get admitted to top schools, check out our bestselling MS Book: Smart Engineer’s Complete Guide to MS in USA.

Happy Sunday 🙂