How Much Education Loan Can I Get
How Much Education Loan Can I Get
Blog Article
How Much Are UG vs. PG Programs Worth?
Introduction
Students pursuing higher education in India and outside now depend heavily on education loans. How Much Education Loan Can I Get? Financing your studies frequently necessitates outside assistance, whether you're pursuing a postgraduate (PG) degree for job progression or an undergraduate (UG) program following your 12th-grade graduation. However, parents and kids frequently inquire about: Do UG and PG programs have different loan limits?
In this article, we’ll explore the typical loan amounts sanctioned for UG vs PG programs, the factors that influence these limits, & how students can plan smartly to secure sufficient funding in 2025.
Loan Amounts: UG vs PG at a Glance
| Program | In India (Loan Limit) | Abroad (Loan Limit) |
| UG (Undergraduate) | ₹4 – ₹10 lakh (unsecured) ₹10 – ₹50 lakh (secured) | ₹15 – ₹40 lakh (secured) Up to ₹7.5 lakh (unsecured) |
| PG (Postgraduate) | ₹5 – ₹15 lakh (unsecured) ₹10 – ₹75 lakh (secured) | ₹20 lakh – ₹1.5 crore (secured) ₹10 – ₹25 lakh (unsecured) |
The restrictions for PG loans are typically greater. Given the shorter course length, improved return on investment, and increased employability, how much may I borrow for my education?
Why Higher Loan Limits Are Frequently Attracted to PG Programs
- Shorter Duration: Since most postgraduate studies last one to two years, payback is completed more quickly.
- Increased Employability: Graduates with an MBA, MS, or M.Tech frequently fetch better starting salaries.
- Reputable Institutions: Postgraduate students frequently apply to IIMs or global universities, which banks view as low-risk.
- Developed Credit/Financial Profiles: Postgraduate students may possess previous professional or academic experience.
UG Loan Considerations:
- Because UG studies last three to five years, the overall cost is higher.
- The income and collateral of the co-applicant are more important because students usually have no financial history.
Elements That Impact Loan Sanction Amounts
- Institution type (Tier-3 college against IIT/IIM)
- Study country
- ROI and employability of the course
- Collateral availability
Qualifications of the co-applicant
- Prior academic achievement
- Advice for Increasing Your Loan Eligibility
- Apply as soon as possible and with the necessary paperwork.
- For a larger loan request, offer collateral security. S
- Keep up a strong academic record.
- Compare your bank options using government portals such as Vidya Lakshmi.
Conclusion
The loan amounts available for undergraduate and graduate programs differ greatly in 2025, with postgraduate students frequently being eligible for larger loan limits, particularly for study abroad programs. How Much Education Loan Can I Get? Because PG programs have shorter repayment cycles and higher employment possibilities, they offer greater flexibility than UG loans, which are more reliant on collateral and family income.
Knowing these distinctions can help parents and students make better plans, select the best lender, and guarantee that financial limitations never stand in the way of academic achievement, whether one is just getting started or has higher goals.
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