Education loan demand rises as students weigh overseas study options

Sonal Kapoor, Global Chief Business Officer at Prodigy Finance, says demand for international education financing is increasing as students navigate visa uncertainty, rising education costs and changing study destinations.

Demand for international education loans is continuing to grow as rising tuition costs, changing student preferences and visa related uncertainty influence decisions on studying abroad.
According to the Ministry of External Affairs, around 1.25 million Indian students were pursuing higher education overseas as of January 2025. As education costs at private institutions in India continue to rise, many families are increasingly comparing domestic and international study options before making long term financial commitments.

The growth in overseas education is also driving demand for specialised education financing. According to CRISIL Ratings, education loan assets under management by Indian non banking financial companies are expected to grow by around 20 per cent during the current financial year. The report also notes that destinations such as the United Kingdom, Germany and Ireland are attracting a growing share of Indian students as they diversify beyond traditional study destinations.
Sonal Kapoor, Global Chief Business Officer at Prodigy Finance, said the period leading up to international university admissions has become more challenging because of evolving visa processes.

“This time of year always creates pressure. Despite students preparing well in advance, many are still waiting for their visa confirmation. We are receiving thousands of emails asking us to hold their application in place because their process is still ongoing. We understand that, and we are working with them.”
Kapoor said students who are reconsidering their preferred destination because of visa related delays still have options available.

“We are also preparing for students who missed out and are now considering a shift in destination. The good news is they do not have to wait an entire year to make that change. That option is still very much open. That said, because the volume of interest is so high right now, students need clarity before they commit to applying or switching destinations. The Fall semester in the UK is still open, along with a few other destinations, and those intakes should be wrapping up soon.”
Alongside growing demand, the education financing market is becoming increasingly competitive, with more consultants, advisory firms and financial service providers assisting students with university applications and funding options.

Kapoor also advised students and families to carefully evaluate borrowing decisions before committing to an education loan.
She said students should consider the total cost of education, future repayment obligations and available financing options before pledging family assets, particularly when pursuing higher education overseas.
Prodigy Finance provides education loans for international master’s students and assesses applications based on academic background and future earning potential. According to the company, eligible applicants can access funding without requiring collateral or a co applicant, subject to its lending criteria.

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