International Women’s Day: Surge in Indian women pursuing overseas education, yet challenges persist

To be sure, the USA are leading the pack where almost 50 percent of the applicants at Invest4Edu have been women, followed by the UK, and Australia with a share ranging from 35 percent to 40 percent.

Delhi-based Deepa Patel, 25-year-old, vividly recalls the moment she received acceptance letters from renowed institution in 2023.

"My parents, who never got the opportunity for higher education, saw my potential and insisted I go for it. They believe that the investment in my education is an investment for our family's future," says Patel, who is pusuing her Master's programme in Computer Science at a university in Australia.

Patel joins thousands of other women, who are symbols of a broader trend of changing attitudes towards education, especially among women in India. Families are increasingly recognising the significance of global exposure and are supporting their daughters in pursuing international higher education opportunities.

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Rise in girl students availing loans

Education consultants and fintech platforms are consistently observing an uptick among women candidates availing loans for overseas education. GradRight, an edtech and fintech platform, has noted an 18 percent year-on-year (YoY) growth in the last three years (2021-2023) among women applying for loans. Women are getting slightly higher approvals (5 percent), compared to male applicants, GradRight data shows.

At HDFC Credila, the number of female borrowers, as a proportion of total borrowers, stands at one-third of all loans disbursed, as of FY24. Over the past few years, while the bank has seen this proportion to be constant, the number of girl students availing loans to pursue education at institutions, both in India and overseas, has grown by almost 50 percent since last year.

Similarly, at Invest4Edu, women now comprise about 45 percent of total applicants. Compared to FY 2021-22, that is a jump of nearly 50 percent.

What changed?

The sheer rise of women in STEM (science, technology, engineering, and math) education – the most popular field in overseas studies, supported by increasing avenues to finance education, and coupled with the change in societal norms, are fuelling the urge to pursue education in foreign nations.

Despite much impetus on gender diversity in education, there is very little research and data on female enrollment in overseas education. A 2016 indepedent research, titled ‘Indian international students: A gender perspective’, suggests a strong correlation between a girl student's decision to study abroad and her mother's educational background.

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The study found that 80 percent of female respondents had mothers with a university education, compared to only 54 percent of male students abroad. This indicates that parental influence, particularly mothers' educational attainment, might play a role in encouraging daughters to pursue international studies.

“It has become easier for women to take education loans. My experience has been extremely positive. I received the benefit of a lower interest rate. Most public sector banks charge 0.5 percent less interest for female applicants. The entire process was smooth for me as information and help was readily available,” said 19 year-old Girija Kaustubh, who has applied for a Bachelor of Design at the University of Melbourne, Australia.

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To be sure, the US leads the pack. Almost fifty percent of the applicants applying for loans to pursue education in US universities at Invest4Edu are women. The UK and Australia follow, with a share ranging from 35 percent to 40 percent.

"More women are going abroad and they are opting for a diverse field of studies. Interestingly, more women from smaller towns and cities are going abroad to study. I am confident that this trend will continue in the future as well,” said Rozy Efzal, Co-Founder and Director of Invest4Edu.

Challenges remain

Embarking on a journey for higher education abroad can be a transformative experience, but for many Indian women, this pursuit is not without its unique set of challenges. Despite the increasing encouragement and opportunities, these aspiring scholars often encounter obstacles that demand resilience and determination.

While platforms like GradRight and Invest4Edu, among others, have streamlined the process, students say biases related to gender in financial matters persist. Women may face restrictions on their financial autonomy, making it challenging to access loans independently.

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“Cultural norms or legal constraints may require women to obtain male family members' consent or approval to apply for loans, which can hinder their ability to pursue education abroad. Despite efforts to promote gender equality, discriminatory practices may still exist within financial institutions or educational systems, leading to unequal access to loans or scholarships for female students compared to their male counterparts,” said 27 years-old Abhinaya Murthy, who recently completed her Masters in London School of Economics, UK.

“Banks ask so many questions if only one parent is earning and it's mentally strenuous. In my case, my husband's earnings are not there. So, I had a lot of challenges explaining, providing documents substantiating nil earnings. Every bank, private or government asked this. The outcome was that there was no loan even for the most brilliant child,” said Geetha Murthy, Abhinaya Murthy’s mother.

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Indian society, rooted in traditions, can impose expectations on women, shaping perceptions about their roles and responsibilities. Pursuing studies abroad may be perceived as a departure from societal norms, leading to scepticism and scrutiny.

The cost of studying abroad, including tuition fees, living expenses, and international travel, can be a significant barrier. Financial constraints often compel women to seek scholarships or part-time employment, adding an extra layer of complexity to an already demanding academic journey.

“Access to credit for the female demographic is lesser than that of their male counterparts, with gender discrimination often being central to the conundrum. Correcting potential bias when it comes to lending to female borrowers is key if loan approvals are to tilt in their favour,” said Arijit Sanyal, Managing Director & CEO, HDFC Credila Financial Services.