Introduction
Education loans have become an essential tool for students pursuing higher education in India and abroad. How Much Education Loan Can I Get? Whether it's an undergraduate (UG) program after 12th or a postgraduate (PG) program for career advancement, financing your studies often requires external support. But a common question students and parents ask is: 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) |
PG loans generally have higher limits. How Much Education Loan Can I Get due to shorter course duration, better ROI, and higher employability?
Why PG Programs Often Attract Higher Loan Limits
- Shorter Duration: Most PG programs are 1–2 years, meaning quicker repayment.
- Higher Employability: MBA, MS, and M.Tech grads often command higher starting salaries.
- Prestigious Institutions: PG students often apply to global universities or IIMs, which banks consider low-risk.
- Established Credit/Financial Profiles: PG students may have prior academic or professional experience.
UG Loan Considerations
- UG courses span 3–5 years, so total costs are higher.
- Students typically lack income history, so the co-applicant’s income and collateral matter more.
Factors Affecting Loan Sanction Amounts
- Type of institution (IIT/IIM vs Tier-3 college)
- Country of study
- Course ROI and employability
- Availability of collateral
- Co-applicant’s creditworthiness
- Previous academic performance
Tips to Maximize Your Loan Eligibility
- Apply early and with all required documents.
- Provide collateral security for a higher loan request.s
- Maintain a good academic record.d
- Use government portals like Vidya Lakshmi to compare bank options.
Conclusion
In 2025, the loan amount you can get for UG vs PG programs varies significantly, with postgraduate students often qualifying for higher loan limits, especially for international studies. How Much Education Loan Can I Get While UG loans are more dependent on family income and collateral, PG programs offer better flexibility due to stronger career prospects and shorter repayment cycles.
Understanding these differences can help students and parents plan better, choose the right lender, & ensure that financial constraints never come in the way of academic success, whether you're just starting or aiming higher.