Education Loan for MS Abroad Studies (without Security)

Education Loan for MS Abroad Studies without Security Collateral

Is it possible to get an education Loan for MS Abroad Studies without Security (collateral)?

It’s completely possible and here’s why.

Education varies between countries. In Germany, for example, most universities are free. Yep, free. But only as long as you can speak the language and have certain minimum marks in high school.

You’ll find a similar situation in Sweden. Universities are essentially free. You wouldn’t expect the majority of Swedish students to graduate with any debt, right?

Wrong. In Sweden, anyone over the age of 18 is considered an adult. And, adult children in Sweden don’t rely on their parents for financial support. It’s not done. At 18, you become financially responsible for yourself.

In the United States, the federal government provides citizens with subsidised loans based on need. Only if their parents can claim them as a dependent, will the family’s financial situation be taken into account.

You will also find government subsidised loans in Australia. Students there don’t worry too much about the initial outlay of attending university. The government foots the bill, and loan repayments are deducted from their pay cheques – as long as they’re earning a certain minimum amount.

These norms contrast heavily with the way educational loans are handled in other parts of the world. Indian students, for example, are flabbergasted by the availability of collateral and family-free loan products on offer.

Banks in India operate according to a different set of regulations. Family co-signers are almost always required, and loans over a certain amount necessitate collateral backup. Students not only need to ask their parents to co-sign on their educational loans, they also need to put the family home on the line too.

Every MS Education Loan Must Be Carefully Considered

It’s a tough spot to be in. And, yet, it doesn’t mean that educational loans in India need to be considered any more carefully than those in Sweden or the United States. A loan is a financial obligation anywhere in the world. Whatever degree you pursue… and wherever you pursue it, education loans are a big deal.

As great as it may sound to receive free college education as a Swedish student in Sweden, taking loans so you can afford to study has just as many ramifications as Indian students studying in India.

No one, anywhere in the world, wants to borrow more money than they need. It’s true for MBAs, and it’s true for MS Engineering students.

If you need a loan to pursue an MS Engineering degree or any other diploma, the return on investment (ROI) of that degree must be carefully considered. And, that’s before looking at a single financial product or bank loan.

Will a domestic degree provide you with the expected ROI? Will you get a job? Will you earn enough to pay off that loan before you or your parents need to sign or co-sign for another loan? Will you be able to support yourself and save for retirement?

It all depends on the field of study and the job market, but it’s becoming increasingly difficult to answer yes. But, don’t panic yet; there are other options.

Choosing to Study an MBA or MS Engineering Degree Abroad

There are, of course, students that pursue domestic degrees taking domestic loans (with or without collateral and family co-signers) in just about every country in the world.

Some countries, like Luxembourg, don’t have the population to justify huge university programmes. Other countries, such as Niger, don’t have the financial backing to make it possible. Where there aren’t many colleges to choose between, study abroad becomes a natural choice.

But, they’re not the only students choosing to study internationally. Some degrees, especially MS Engineering programmes, are better pursued abroad. The structure of education, the specialisations available, and the expected ROIs are simply higher for MS degrees in some countries, like the United States.

And, since ROI is the first question you should be asking when considering a post-graduate degree, you may have to look at universities abroad.

Students from modest financial backgrounds can afford higher education

If you don’t want to borrow more money than you need for your education, then, surely, you don’t want to consider an international degree. That will cost you (and potentially your parents) so much more, won’t it?

Except, there’s something else you need to know. The ideal student loan debt should total less than your expected annual income after graduation. If you take a loan for the full $70,000 estimated spend, your annual salary should be at least $70,000.

According to the statistics on and Huffington Post, that’s not hard to achieve. If you’re sitting with an MS Mechanical Engineering degree from an American university and/or working with an MS degree in the US, that’s about the minimum annual salary you should expect.

And, rather surprisingly, more than 20 percent of engineering students in the United States aren’t American. But, that’s beside the point, isn’t it?

The real question is how you’ll find that $70,000 to fund your studies? Could you really ask your parents to put their future on the line for you to pursue an international MS Engineering or MBA abroad?

You may not have to.

Education Loan for MS Studies Abroad without security / collateral

Remember that Swedish students would never ask their parents to co-sign on a loan. And, think back to all those American graduate-level students that don’t rely on their families. They receive loans without co-signers, securities, or collateral. And, they’re not the only ones able to take these loans.

Once you break out of the financial norms of your home country (as any MS abroad student does by default), the possibility of tapping into global financial structures is higher. You’ll find that many American universities are so certain of their grads’ successes and job stability that the school itself acts as a co-signer for US loans.

That’s not the only option for funding MS abroad studies either. Because it’s not abnormal to find loans that don’t require co-signers or collateral in many countries, global lenders exist that operate with the same principles.

Believe it or not, international loan platforms exist for MS Engineering loans. And, yes, these are available to Indian students who are used to requiring their parents’ signature as much as they are for Swedish students who wouldn’t dare.

Rishabh GoelAuthor Bio: Rishabh Goel is an Associate Relationship Manager at Prodigy Finance. He studied Economics & Engineering at BITS & Masters at London Business School. He has helped Indians excel at GMAT/GRE and mentored students to attend top schools globally.

This article is part of CrystalConnect, an outreach initiative by MBA Crystal Ball.

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MBA Crystal Ball provides professional Admissions Consulting services. Hire us to improve your chances of getting into the top international universities. Email: info [at] mbacrystalball [dot] com

Prodigy Finance //
Prodigy Finance
Prodigy Finance is the pioneer of community-based student financing. To date, the company has funded students from 115 countries with repayment rates in excess of 99%.


  1. vinay gupta says:

    I belong to a poor family from India.
    I want to join master degree in USA but I have no money to pay large amount to this programs.
    Can you help me about fee / living cost / scholarship details and give me all information…

    • Rishabh Goel says:

      Hi Vinay,

      Thank you for your interest in Prodigy Finance.

      The cost of attending a typical Masters degree in the USA is approximate $55k. This is the median cost and can vary åccording to your school and programme. This cost includes Tuition Fee (~$40k) and Living Expenses (~$15k).

      There are lots of scholarships available for Indian students. You can find them online from the school Financial Aid page or from various scholarship resources. While there are indeed a lot of scholarships available, the pool of Indian applicants has risen considerably over the past few years. Furthermore, most scholarships cover part of your education costs and you still need to pitch-in funds from your own pocket.

      For such students, Prodigy Finance offers non-collateral/no-cosigner loans to students attending MS programmes in the US and across the globe. Please check out the website and/or reach out to a Prodigy Finance at for suther details.

      Best wishes,
      RIshabh Goel

  2. Jashik says:

    Hi sir
    My name is jashik from kerala.. i got an admission mba (strategical management in tourism) from turiba university in Latvia. The total fees will be 4.50 lakhs.. i approach the bank they need a tangible collateral security but i dont have any tangible collateral securities to give them… i have a doubt what securities will be needed for 4 to 7 lakhs for abroad study ? Pls me give me all information

    • Rishabh Goel says:

      Hi Jashik,

      Thank you for your interest in Prodigy Finance.

      Unfortunately, we do not have a loan program in place with Turiba University. If you’d like to take a look at the schools that we do support this year, the full list on our FAQ page here:

      Our aim is to support international students joining the top 100 schools in Business, Engineering, Law and Public Policy. We’re now speaking with many of these schools to build partnerships for the classes starting in 2017.

      Best wishes,
      Rishabh Goel

  3. Chandan Chakraborty says:

    Sir, I have done B.Tech in Civil Engg.and worked for 5.5 years in a blue chip engg firm in KOlkata, India. Now I want to do MS in Construction Management from one of those relatively cheaper Universities in US. I would like to know the following-
    a) what should be the minimum GRE marks that I have to score
    b) what will be the annual cost of attendance – cost of tuition, living and other incidental expenses.
    c) is there any possibility of getting scholarships and financial aid
    d) what are the chances of getting part time jobs to meet the partial expenses while studying.
    Any other information that you think might of use to me.
    Thanks and regards

    • Rishabh Goel says:

      Hi Chandan,

      Thank you for your interest in Prodigy Finance.

      If you are interested in relatively inexpensive US Universities, you might want to focus on Public Universities.
      To answer your questions:
      a) GRE scores depend on the school you are applying to. As a rough rule of thumb, you need at least 320 for a top 30-40 school and 300 for a top 100 school.
      b) The median Cost of Attendance is $45,000. Of course, it varies according to university.
      c) Yes – there are always chances of securing scholarships. However, not everyone secures a scholarship and often the scholarship amounts are not enough to support the full Cost fo Attendance. Prodigy Finance offers non-collateral/no-cosigner loans to international students at top schools.
      d) Very often students secure various assistantship as Research, Graduate or Teaching Assistant. You can also do an internship in the summer to meet partial expenses.

      Happy to answer any further queries.

      Best wishes,
      Rishabh Goel

  4. Shubham pal says:

    Hi I want to go Australia for master degree. Sir can prodigy finance my studies.

    • Rishabh Goel says:

      Hi Shubham,

      Thank you for your interest in Prodigy Finance.

      If you’d like to take a look at the schools that we do support this year, the full list on our FAQ page here:

      Our aim is to support international students joining the top 100 schools in Business, Engineering, Law and Public Policy. We’re now speaking with many of these schools to build partnerships for the classes starting in 2017.

      Best wishes,
      Rishabh Goel

  5. Roshni Gulati says:


    I am a Chartered Accountant from India, who is planning to pursue Msc. in International Business Management from UK. I have following queries:

    a) Msc in IBM is better or should I go for complete MBA?

    b) Is UK a good option or I should prefer US? US the cost is high and I didnt find good Masters program in IBM.

    c) The Cost in UK would be around 20-22 Lacs and I have been looking for education loan but I dont have any collateral security to provide. Can prodigy finance help me out? Is the help limited to certain special universities only?

    Thanks in advance!

  6. Renaju says:

    Dear Sir,
    I am a male nurse from India and my qualification is Diploma in general nursing and I have 5 years of experience. I am now planning to upgrade my qualification to Bachelor of nursing from Deakin university, Australia. The future prospects are extremely good as I can work as a registered nurse in Australia after completing the course. The total cost of the course will be 25 lacs including living expenses. I am not able to find funding for studying abroad as all the banks need collateral which I don’t have. Can you please help me to avail a loan so that I will pay back during and after my course. Please help me.

    Renaju Lawrence

  7. apsara chatterjee says:

    Hi I am Apsara Chatterjee from India. I already have an offer letter from University of Leicester with a merit scholarship and 1 year paid internship. I want an education loan without collateral. Is it possible?

  8. Chirag Jain says:

    Dear Rishabh,

    I am Chirag Jain from Mumbai. I already have secured admit in University of Technology Sydney for Masters in Information Technology.
    i want an educational loan or can prodigy finance my studies. Can you please guide me through this.

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