Education Loan Options for Studying in Malaysia

Over 10 Malaysian universities are ranked among the top positions in the QS World University Rankings, making Malaysia a prominent country in global education. From renowned institutions offering varied degrees and programs to vibrant and affordable student life, Malaysia is quite attractive for international students. Read on to learn more cost of studying and bank education loan Malaysia, student loan Malaysia, the process of education loan for international students, major factors to consider, and much more!

Cost of Studying in Malaysia

Universities in Malaysia offer accredited and globally recognized courses, making it quite popular among international students. With warm hospitality, an English-speaking population, and easy access to education loan for international students, Malaysia has emerged as one of the best and most affordable study destinations.

The average annual tuition fee for a bachelor's degree is, while the average annual tuition fee for a postgraduate degree is RM 27,000–RM 47,297. PhD programs in Malaysia usually have lower tuition fees than bachelor's or master's programs. Also, education loan Malaysia banks also offer like RHB study loan malaysia etc.

Top 5 QS-ranked Malaysian Universities 2024

Cost of Living in Malaysia

Kuala Lumpur, Subang Jaya, and Shah Alam are some of the most popular cities as per the QS Best Student Cities 2024. On average, an Indian student needs around INR 40,000 per month excluding house rent.

These factors are very important to consider for your financial planning and for your student loan Malaysia. Education loan for international students usually cover this expenditure but it has to be communicated to the bank. Here is a break-up of the cost of living in Malaysia:

Universities Recognized for Education Loan Malaysia

Here are some of the top-rated universities in Malaysia for which education loan for international students are available:

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  Universiti Malaya (UM) 
• 
  Universiti Kebangsaan Malaysia (UKM) 
• 
  Universiti Sains Malaysia (USM)
• 
  Universiti Putra Malaysia (UPM)
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  Universiti Teknologi Malaysia (UTM)
• 
  Universiti Teknologi Petronas
• 
  Sunway University
• 
  Universiti Kebangsaan Malaysia

While this is not the complete list, however, you can get complete information about the list of universities, their courses, and education loan to study abroad Malaysia for international students by contacting Gyandhan.

Types of Education Loan for International Students in Malaysia

Planning your higher studies in Malaysia is a great option, given the country is affordable, hospitable, and offers accredited and internationally recognized courses. However, with tuition fees, living expenses, and other expenditures, it is of utmost importance that you plan your finances appropriately. Fortunately, various bank educational loans for international students can make your study abroad dream a reality. For abroad education there are two types of loans secured and unsecured loans.

Secured Education Loan Options Malaysia:

Secured education loan for international students is provided by banks as well as non-banking financial corporations (NBFCs). However, public banks are preferred over private banks and NBFCs because of lower interest rates. One of the most important aspects of secured loans is that they require collateral as a guarantee against your education loan. Collateral can be an immovable property (like homes, shops etc.) or liquid assets like fixed deposits, government bonds, sovereign gold bonds etc. In case of re-payment failure of a loan, even after repeated intimations, the collateral is sold by the lender to recover the loan amount.

Secured educational loans for international students - overview

Unsecured Education Loan Malaysia:

Unsecured education loan for international students is usually provided by private banks and non-banking financial corporations (NBFCs). These types of loans do not require any collateral or guarantee, however, a co-applicant with a stable monthly income and a good credit rating is required. Co-applicants, usually, can be the applicant’s parents or blood relatives, however, some lenders allow close relatives as co-applicants too. Also, please note that the loan amount is lower and the interest rate is higher for unsecured education loans as compared to secured education loans, as the risk involved is higher for lenders.

Unsecured educational loans for international students - An overview

Also read: How to get an education loan with a low CIBIL score? 

Major Factors To Consider For A Student Education Loan Malaysia

Before you apply for an education loan for higher studies in Malaysia, consider the following important factors for educational loans for international students -

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  Make sure there is a co-applicant with a stable monthly income and a good credit score.
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  Co-applicant can be your parents or any blood relative. However, in some cases, lenders allow close relatives, family members or even friends to be co-applicant.
• 
  If you are planning to apply for an unsecured loan, make sure your co-applicant’s credit score and monthly income are within the lender’s required range.
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  If you are planning to apply for a secured loan, make sure that all the required documents of collateral are in order as per the lender’s requirements.

List of Expenses Covered by Education Loan Malaysia

Education loan Malaysia study overseas cover the following costs and expenses. They can be broadly classified into the following categories:

Eligibility Criteria for International Students for Education Loan Malaysia

Malaysia, being a highly affordable and hospitable destination for higher education has specific eligibility requirements when it comes to education loan for indian students in Malaysia. It can be broadly classified as follows:

Eligibility Criteria: Academics:

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  For Undergraduate Programs:

  • 
    Completion of 12 years of education (e.g., high school diploma, A-levels, IB).
  • 
    Minimum GPA or percentage set by the university of your choice.
  • 
    Competitive programs like medicine or engineering may have different GPA / percentage criteria

   
• 
  For Postgraduate Programs:

  • 
    Recognized bachelor's degree, typically with a minimum GPA of 2.5 (on a 4.0 scale) or minimum 75% in Unified Examination Certificate (UEC) or equivalent.
  • 
    Relevant work experience, if you are planning for work experience MBA course

   

Eligibility Criteria: English Proficiency:

• 
  IELTS: Minimum score of 5.5–6.5.
• 
  TOEFL: Scores of 500 (Paper Based Test), 173 (Computer Based Test), or 60–80 (Internet Based Test).

Eligibility Criteria: Financial Proof:

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  Minimum annual funds: MYR 70,000 (INR 1.4 L approximately). Proof can include bank statements or financial sponsor letters.

Eligibility Criteria: Student Visa Requirements:

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  Admission offer letter from a Malaysian institution.
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  Valid passport with at least 12 months’ validity.
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  Visa application forms and medical clearance.
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  Health insurance as per the Education Malaysia Global Services (EMGS) guidelines.

Application Process Of Education Loan Malaysia

Make sure that the following documents are readily available before you proceed with your education loan application-

Apart from these, income proofs of co-applicant or guarantor are also required as mentioned in the table-

Also read: Documents required for an education loan: A detailed guide

Repayment of Education Loan Malaysia

The Repayment tenure of an education loan is one of the key factors that a student should keep in mind before selecting a lender, as any delay in repayment can severely affect your CIBIL score. Most lenders require borrowers to pay simple interest or partial simple interest during the moratorium period.

Also read: 

• 
  How to plan your education loan repayment?
• 
  Education loan without a parental income?

How to Apply for an Education Loan Malaysia?

Securing a bank educational loan for Malaysia is a straightforward process, however, due to multiple formalities and checks, the process can be tedious. Apart from the loan process, choosing a lender can be a time-consuming process as well. At Gyandhan, we have streamlined the entire process and you can get the best education loan for Malaysia with just a few clicks. We will provide you with free and thorough assistance in obtaining education loans for studying in Malaysia. Here are the steps:

Step 1: Check your loan eligibility, which is based on your CIBIL score, loan amount, and other factors.

Step 2: An ELC (Educational Loan Counsellor) will be dedicated to you, who will go through your profile and suggest the best lender based on your profile.

Step 3: Once your loan application process commences, a customized document checklist will be sent to you, which you have to send accordingly.

Step 4: Verification of documents usually takes around 7-10 days, depending upon your chosen lender.

Step 5: If your application gets approved, you will receive a loan agreement that needs to be signed by you. Once signed, you can track your education loan status through Gyandhan’s user dashboard.

Step 6: After all checks and internal processes as lender’s policies, the loan amount is disbursed, either to your account or to your institute’s account, depending on the terms and conditions of your lender.

Best Education Loan Option for Malaysia

The best bank education loan Malaysia option varies according to each student's profile, requirements, and financial credibility. However, students can make a well-informed decision by evaluating the following important points:

• 
  Secured education loans usually offer higher amounts at lower interest rates, as compared to unsecured education loans. Thus, it is strongly recommended to go for a secured education loan with higher amounts that can cover all your expenditures without straining your financial situation.
• 
  The processing fee is refunded once the loan is approved, which is financially beneficial to you.
• 
  Unsecured education loans are usually offered by private banks and NBFCs. Since collateral is not involved, the time taken to disburse the amount is relatively less but interest rates are considerably higher.
• 
  NBFCs (Non-Banking Financial Corporations) provide unsecured education that covers 100% of your expenses. These loans are sanctioned quickly with minimum paperwork. However, NBFCs provide loans at high interest rates, and thus, it is advisable to choose an education loan from NBFC as a last option.

Malaysia, no doubt, is an ideal destination to pursue higher studies as it offers certified courses and degrees at an affordable price. Education loans for Malaysia are easily available whether you're pursuing a bachelor's, master's, or PhD. We at Gyandhan, can help you with the entire process from application to approval in a streamlined and expedited manner. Check your eligibility now for more information.

Frequently Asked Questions