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Education Loan For MS Abroad: What Do You Need To Know?

Education Loan For MS

Moving abroad for higher education can provide opportunities and chances to establish a successful career and achieve growth. For bachelor’s graduates, acquiring an MS degree from a recognised university can further increase your access to these opportunities. However, due to inflation and the growing costs of education, emigrating abroad is an expensive process that domestic students can rarely afford without any financial aid to study abroad. One of the best solutions is an MS student loan. Our guide compiles all the essential aspects, recommended banks and finance sources, and the step-by-step process of an education loan for MS degree programmes. Continue reading to find out!

Benefits Of Taking An Education Loan For MS


Due to the high costs of quality education, taking a loan for tuition fees and living expenses is a wise investment. Often, excessive loans are considered a poor fiscal decision since the interest rates increase the principal amount quite a lot. However, education loans are a prudent decision since they are not only an investment in the student’s future but also a means to access higher opportunities. Check out some of the many benefits of taking an education loan for MS.


Student loans are designed to cover the candidate’s expenses during their study, which they can later repay once they acquire employment. This system instils a sense of responsibility and independence among the students as they do not have to rely on anyone for their expenses.

Comprehensive Expense Support

A student loan covers the total cost of tuition for all terms of study. In addition, the cost of living, transportation, visa, health insurance, and other study-related expenses are also covered. If not, the financing body sanctions at least a percentage of these expenses.

Interest Rates & Repayment Schedules

Education loans are often outlined while keeping the best interests of students in mind. Additionally, since students will be paying it after they acquire a job, repayment usually takes time. Hence, student loans have comparatively lesser interest rates and more flexible repayment schedules than other loans.


Numerous banks and financing bodies readily offer student loans at low-interest rates and flexible repayment schedules. Through any source, students can acquire loans by following a simple step-by-step process.

Eligibility Criteria


Ensuring that you fit the eligibility criteria is one of the most crucial steps. While most banks have similar basic eligibility guidelines, the latter can vary from bank to bank and depending on the course, as well. The basic criteria are listed below –

  • The applicant must be a minimum of 18 years of age. Otherwise, the parents must take a loan on behalf of the candidate.
  • Students must be enrolled to a recognised or accredited university.
  • Applicants must submit proof of enrolment, like an admission letter or offer letter.
  • Banks verify the student’s financial background and capability to repay the loan. Hence, financial documents must be error-free.
  • Banks demand scores of entrance exams and transcripts of previous grades. Hence, maintaining a consistent academic record is crucial.

Other than these, each bank has its regulations depending on the type of loan, the candidate’s financial capabilities, and the type of course too. Students are advised to research these rules and guidelines thoroughly before proceeding.

Required Documents


To begin the process of sanctioning the loan, banks verify each criterion through valid documents. Hence, to expedite the process, students must compile their files of documents beforehand. Here is a list of the required documents.

  • Application form
  • Photographs
  • Official academic transcripts or mark sheets of previous grades
  • Official result cards of entrance exams undertaken
  • Birth certificate
  • Proof of identification of student, co-applicant and guardian
    – Aadhar Card
    – PAN Card
    – Driving License
    – Voter ID.
  • Proof of residence
    – Electricity bill
    – Tax receipt
  • Proof of admission
    – Offer letter
    – Letter of enrolment
  • Six months bank statements of the co-applicant
  • Proof of income
    – Salary Receipt
    – Bank slips
    – Form 16
  • Proofs of any other expenses to be included under the loan. For instance, proof of the cost of housing if accommodation has to be added to the loan.
  • Property Title Deed
  • Building approved plan
  • NOC for a mortgage from a builder or society

Students must note that the last three documents are required only if they apply for a student loan with the immovable property as collateral. However, several banks have many options for students to acquire an MS loan without collateral. 

How To Apply For An Education Loan For MS?


The procedure to acquire an education loan for MS is quite simple and easy to follow for students. On average, a student loan takes around 15 days to be sanctioned. However, it may take longer for the formalities to be completed. Thus, students are advised to begin the process as soon as possible to avoid discrepancies and delays. Note the following steps to acquire a student loan.

  1. Eligibility – Before proceeding to the application process, check your eligibility in compliance with the basic guidelines to find the most suitable loans. It is advisable to use the services of a financing body or consultancy to evaluate your eligibility since they can suggest the best education loans accordingly.
  2. Research – Once you’ve evaluated your eligibility, research the different student loans. Check and compare the available schemes or interest rates suitable for you and shortlist the best ones. Also, find out all the expenses that need to be listed and verify the accurate amount of each. Once sanctioned, the amount of a student loan can be seldom changed. Hence, quoting accurate costs at the beginning is crucial.
  3. Apply – Once you’ve finalised which bank and loan you wish to go ahead with, fill out the application form accurately and attach it to the file of your documents. Ensure that your details match the ones on the official documents.
  4. Compile the file – Refer to the above-mentioned list of documents in addition to those listed by the bank and compile them in a file to be submitted ahead.
  5. Sign – On approval, the bank will issue an official document containing all the components of your loan with in-depth details about the interest rates, repayment and other terms. Your loan will be sanctioned once you sign the document. Next, the demanded amount will be transferred directly to the university or college. In some cases, it may be reimbursed to the student if they have already endured the costs.

Types Of Lenders For Education Loans For MS In The United States


The United States is a suitable location for pursuing higher education as it has a plethora of opportunities for career growth and development. Keeping this in mind, lenders are often more inclined to sanction the loan faster if the candidate applies for a recognised university in the US. Students can acquire an education loan through the following sources –

  1. Foreign Lenders – Although they cover high expenses under an education loan, their interest rates (12 – 15%) are usually higher too, when compared to other sources.
    Examples: Prodigy Finance, MPower Financing.
  2. Public Banks – These might require collateral before sanctioning the loan. However, they cover the complete costs of education at an interest rate of 8 – 10%.
    Examples: State Bank of India, Bank of Baroda.
  3. Private Lenders – They usually fund unsecured education loans at an interest rate of 10 – 13%. But their schemes are flexible and accommodating for students.
    Examples: ICICI Bank, Axis Bank, HDFC Bank.

List Of Education Loans For MS Abroad


A list of the most helpful education loans for MS abroad is compiled below. None of these loans requires a cosigner, which makes the process easier for students.

  1. Ascent – Ascent Student Loans are undoubtedly, one of the best in the market today. Most importantly, they do not require a cosigner and sanction an additional amount to cover the costs of housing and living as well.
  2. Discover – Private loans without the necessity of a cosigner, ‘Discover’ loans require the applicants to have a valid credit score.
  3. Citizens Bank – Citizens Bank approve education loan for higher studies without any application fees. However, candidates must show a good credit score.
  4. Earnest – The advantage of going with Earnest Loans is that they cover the entire cost of tuition, even if it is as high as USD 2,50,000.
  5. Sallie Mae – Sallie Mae offers student loans specifically to candidates of graduate programmes and does not need a cosigner for approval.
  6. Funding U – Similar to Earnest, Funding U Student Loans cover a generous amount of loans – up to USD 1,50,000 per academic year.
  7. Common Bond – They offer students loans of high amounts and may be willing to cover as much as 6-figure amounts under the right eligibility.

Top Education Loan For MS In India


Moving abroad for higher studies may not be the most feasible option for everyone. You can still be eligible for several types of student loan for MS if you decide to continue your education in India. If you’re wondering, ‘Which is the best bank to take education loan for MS in India?’, check out the following table for details of these loans and their respective characteristics.

BankMaximum Loan AmountCollateralInterest RatesRepayment 
SBIINR 30 lakhsFlexible 7.45 – 9.55%15 years
Axis Student LoanINR 75 lakhsCollateral required for loans above INR 40 lakhs13.70 – 15.20%10 years

HDFC Credila

INR 20 lakhsCollateral required for loans above INR 7.5 lakhs9 – 14%15 years
IDBI student loanINR 20 lakhsCollateral required for loans above INR 7.5 lakhs8.49 – 8.75%15 years
Punjab NationalFlexibleFlexible  15 years
CanaraINR 20 lakhsCollateral required for loans above INR 7.5 lakhs7.80 – 9.40%15 years
ICICI Education LoanINR 1 croreCollateral required for loans above INR 20 lakhs for UG, and INR 40 lakhs for PGStarting from 9.50%15 years


Other Banks Providing Education Loans For Higher Education


If you find it tough to acquire a feasible student loan from one of the above-mentioned finance sources, try applying at the following banks. Their flexible guidelines and simple procedures may get you an education loan for higher education.

  • Avanse Education Loans
  • Syndicate Education Loans
  • Vijaya Education Loans
  • Bank of Baroda Education Loans




Q1. Can I get an education loan for MS without collateral?

Ans: Students can acquire an education loan from either public or private banks without collateral. However, after a cap of INR 7.5 lakhs for public banks and INR 40 lakhs for private banks, collateral is necessary.

Q2. What are the types of education loans for MS in the USA?

Ans: Students can opt for two types of overseas education loans for studying in the US – Secured Education Loans and Unsecured Education Loans.

Q3. Is education loan interest-free?

Ans: Currently, education loans in India aren’t interest-free.

Q4. Who is eligible for an education loan?

Ans: Any Indian resident of a minimum of 18 years of age can apply for an education loan. The candidate must have secured admission to a higher education course in recognised or accredited institutions in India or abroad.

Q5. What is the minimum income for an education loan?

Ans: INR 30,000 is the recommended minimum monthly salary to be eligible for an education loan at most banks.

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Education Loan For MS Abroad: What Do You Need To Know?

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