Have you ever wondered why a loan application for courses not belonging to STEM disciplines faces a hard time getting approved? Why do lenders, particularly private lenders, decide whether to approve or not or how much to fund depending on the course student chose?

If you are here to know what are STEM courses then do not worry, this article will explain the various courses which can be counted as STEM fields, the top universities across the world offering these courses, and how you can fund these courses abroad.

What is STEM?

STEM stands for Science, Technology, Engineering, and Mathematics. STEM courses are a group of subjects that specifically deal with the fields of Science, Technology, Engineering, and Mathematics. 

The Science in STEM specifically includes subjects related to natural sciences and formal sciences. The third type of science, political sciences is part of the Arts and Humanities group. Hence it is not to be confused.

If you do thorough research on the subjects that are covered under STEM courses, you are likely to get confused. This is because universities across the world offer a huge variety of courses under the STEM category.

Which courses are considered STEM courses?

Apart from the obvious, there are several interdisciplinary fields that could be categorized as STEM courses. The sub-disciplines of each of the fields represented by the acronym are counted under the STEM category. 

The fields of Aerospace engineering, Astronomy, Biochemistry, Biology, Chemistry, Physics, Chemical engineering, Mechanical engineering, Civil engineering, Computer science, Electrical Engineering, Mathematics, Psychology, Life sciences, Natural science, Material sciences, Biological Sciences, Information Technology, Software Engineering, Structural Engineering are some of the most sought after STEM courses by international students.

Who can opt for STEM courses?

STEM courses offered by universities across the world cover both, undergraduate, as well as postgraduate programs. Students who have completed their previous educational qualifications in any of the fields under the STEM category are eligible to apply for the same. 

STEM being one of the most competitive categories of higher education, the cut-off percentages can be quite high for international students who wish to secure admission into any of the STEM courses abroad. 

Some of the prestigious universities around the world that offer varying degrees in STEM are MIT, Princeton, Harvard, University of British Columbia, Toronto University, the UNSW, Monash University, etc. Students are also required to appear for exams such as the IELTS or TOEFL, depending on the country in which they prefer to study and the requirements placed by their respective universities. In addition, they are also required to secure qualifying scores in admission tests such as GRE, in order to be able to secure admission into any of the top universities offering STEM courses.

Students from India who wish to study for undergraduate STEM courses should have completed their high school from the science or commerce streams and passed the corresponding admission tests such as the SAT.

Top universities for STEM courses in USA

The concept of STEM appeals more to the education system in the USA than that of any other country in the world. It is also to be noted that a major percentage of Indian students who enroll in universities in the US is higher compared to those who apply for other locations abroad. Hence, it is only fair to list some of the top universities for STEM courses in the USA. Here are some of the top universities for STEM courses in the USA and their global rankings. 

Why banks and lenders prefer STEM Courses

As STEM courses offer great employment opportunities to those enrolled, all lenders consider them to be the creme de la creme of the higher education courses. It means that if you are enrolled in a university for any of the STEM courses, you can easily get an education loan to pursue the same because-

• Higher Average Salary -One of the reasons why banks prefer STEM is because of its earning potential. Usually, STEM graduates can expect to receive higher starting salaries than the graduates of other subjects. Higher the salaries, less are the chances of students defaulting on the loan.
• Wide Variety of Careers - Students graduating from a STEM course have a high chance of getting employed since in almost every industry there is a high job demand for STEM graduates.

Types of Education loans 

Education loan is available under two different categories. These categories have been decided on the basis of the need for collateral security. Education loans that are lent on the basis of collateral security are called secured education loans and the ones which do not need any collateral security are called unsecured education loans. 

Secured education loan for STEM course abroad

Secured education loan is mainly provided by major government banks like the SBI, Bank of Baroda, PNB, etc. Government banks are the first choice of most students and their parents for an education loan due to the multiple benefits they get. However, not all students possess collateral whose fair market value can cover the total education loan amount.

Again, the flexible policies adopted by government banks regarding education loan for abroad studies makes it possible for candidates to borrow an education loan even under such circumstances. It is possible for students to pledge a third party’s assets as collateral security against their education loan.

Another concern that bothers a lot of loan applicants is the long processing time taken by government banks. Even the ones considered to be the best bank for education loans in India have this issue. 

This is where the assistance and expertise of the WeMakeScholars team come in handy. The knowledge and expertise of our financial team have helped a lot of students in getting their education loan in India to study abroad within a stipulated time without them having to face a lot of obstacles in the process. 

When you apply for an education loan through WeMakeScholars, you get to experience a flawless education loan process with some of the most prominent government banks in India. Education loans are sanctioned within 15-18 days of applying with each of these banks. So, do get in touch with our team today to avail yourself of assistance regarding your secured education loan process.

Education loans in India without collateral for study abroad

Education loans without collateral or unsecured education loans are lent by private lenders. Unsecured education loans of up to 60 lakhs can be offered to students for STEM courses. 

There are three major lenders that can provide enough education loans to cover your STEM course abroad since Government banks can only provide up to 7.5 lakhs of unsecured education loans which are not enough to complete STEM courses abroad. The three major private lenders are

• NBFCs (Non-Banking Finance Companies)
• Private banks
• International lenders/ USD lenders

NBFCs provide unsecured education loans on the basis of several factors of a candidate’s profile and the country they wish to pursue their courses from. For eg. For the students who need an education loan to study in the USA, a maximum of INR 60 Lakhs can be provided as education loans and a loan amount of a maximum of 20 lakhs for Germany.

Similarly, private banks check candidates’ profiles and the ranking of the university for approving education loans. Whereas international lenders provide education loans purely on the basis of candidates’ profiles.

Due to the absence of collateral, the interest rates charged by these private lenders are higher than what is charged by government banks. These interest rates vary between 10% to 14.5%. The processing fees charged by them depend on certain aspects of your academic profile and those of your co-applicant’s financial profile. these private lenders charge a processing fee that varies between 0.9% to 2% of the total education loan amount sanctioned.

An education loan process may seem very overwhelming if you do not possess the right kind of information. The financial officers of WeMakeScholars strive their level best to provide the students with some of the best schemes offered by government banks, NBFCs, as well as private banks in India. Do request a callback if you are seeking an education loan for STEM courses abroad.