Are funds coming in your way of pursuing a master's course abroad? It's reasonable, considering how costly studying abroad has become in recent years unless you have opted for some of the cheapest countries to study abroad.

Still, despite there being a few cheap countries, it is by no means affordable to everyone. The minimum you need before moving to another country is at least 10-15 lakhs which is again not a small amount. And if you want to do your master's degree in the USA (one of the costliest countries for masters) then you would need at least 30-40 lakhs to complete your 2 years master's. 

There are numerous ways of funding higher education abroad, but there is no better way to finance your education abroad than abroad education loans. Although a lot of students wish to borrow an education loan for their master's courses abroad, a lot of them are not fully aware of how to go about the entire process.

This is why in the 37th episode of the LoanFlix series, we have explained how should students plan their master's education loan process. You may watch the video of the same, below.

Before applying for an education loan, having a thorough knowledge of the various types of education loans lent by banks and other financial institutions can be helpful. 

An education loan process for a master's degree is mostly similar to that of obtaining an education loan process for any other degree. What sets a process apart from others is the preferred country for the master. 

One advantage that students wishing to pursue master's get are that lenders (especially private lenders) prefer funding master's courses abroad over UG courses. 

Types of education loans for master's courses abroad

Basically, there are two types of education loans a student can get for their master's abroad. These loans are provided to students who deem eligible as per the eligibility parameters set by the lenders.

The two types of education loans are- 

• Secured education loan: A Secured education loan or Collateral education loan is only offered to students who have something to pledge to the banks.

You can pledge a home, flat, non-agricultural land, fixed deposits, insurance policies (Term insurance), and Government bonds. 

WeMakeScholars always advise students to try for a secured education loan from a Government bank as they provide the best overall deal. You should check out the different education loans schemes provided by Government banks.

• Unsecured education loan: Unsecured education loans or non-collateral education loans are offered to students who are unable to put up collateral. 

Mostly Private banks/NBFCS or international lenders offer these loans. Here they follow stringent eligibility criteria. Students are required to bring a strong financial co-applicant i.e someone with a stable income source who files ITR. 

Bear in mind the interest rate on unsecured education loans are at least 2-3% higher than that of a secured education loan. Also, check out the different education loans schemes provided by private lenders.

Lenders offering abroad education loans for master’s courses

Below are the lenders that provide a number of education loan schemes tailored to meet the requirements of students with varying needs. This could be based on course, country, etc. 

• Government/Public Banks
• Private Banks
• NBFCs ( Non-Banking Financial Companies)
• International/ USD Lenders

The following is a brief overview of what various lenders have to offer for master courses overseas.

Government/Public Banks

Private Banks

NBFCs

International/ USD Lenders

The loan amount and Interest rates for master's courses abroad

The interest rates and loan amounts offered by different lenders for master courses abroad have been compiled in this table.

Did you know, that the education loan terms (interest rates, processing fee, loan insurance, etc) in private lenders are negotiable?. And if you lack the negotiable skills, you can miss out on a better offer. 

Through WeMakeScholars, you get an automatic 0.5% reduction on the education loan interest rates. Apart from that, your assigned financial officer will also negotiate on terms even further if possible.

When to apply for an education loan for a master's course abroad? 

Most of the episodes featured in the Loan Flix web series give ample information about the typical education loan application procedure.

The financial team of WeMakeScholars recommends all its students to apply for an education loan at least 1.5 months before they need funds to fulfill all the preconditions for a typical Masters's course abroad. 

Almost every education loan application submitted to government banks through the WeMakeScholars team is sanctioned in 18-20 days, as opposed to 2-3 months when visited directly. And unsecured education loans from NBFCs are processed within a week due to the lesser amount of paperwork involved in the process. 

The services provided by us are free of cost because we are supported by the Ministry of IT, Government of India. So don't wait, apply through WeMakeScholars.