Dreaming of pursuing higher education in Malaysia? You're not alone. In 2024, Malaysia saw a 25% rise in international student applications, driven largely by students from Asia and the MENA region, with India emerging as one of the key source markets for Malaysian universities.
For Indian students, this growing popularity makes Malaysia an attractive destination thanks to its quality education and relatively affordable tuition fees. There are several education loan options available to Indian students planning to study in Malaysia.
This guide on Education Loan Malaysia 2025 covers eligibility, required documents, application process, and repayment options to help you fund your studies.
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Education Loan Malaysia 2025 Key Highlights
The table below summarises the cost of studying, loan types, eligibility criteria, and other important details for Indian students planning to study in Malaysia.
Cost of Studying in Malaysia for Indian Students in 2025
Studying abroad is a significant investment, and choosing a destination that offers quality education at an affordable cost is crucial. The average annual tuition for an undergraduate degree in Malaysia is approximately US$6,000, according to an ICEF Monitor report.
The cost of tuition in Malaysia varies based on the program and institution. On average, Indian students can expect to pay:
- Undergraduate Programs: MYR 25,349 (approximately 5.29 lakhs)
- Postgraduate Programs: MYR 27,000 to MYR 47,297 per year (approximately INR 5.6 lakh to 9.8 lakh).
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Tuition Fees at Leading Malaysian Universities
Malaysia has become an increasingly popular destination due to its affordable tuition fees and high-quality education. Adding to its appeal, five Malaysian universities are ranked among the top 200 globally as per the QS World University Rankings 2026, reflecting the strong academic standards students can expect.
The table below shows the average approximate tuition fees at some of Malaysia's top universities:
Living Expenses for Indian Students in Malaysia 2025
Malaysia stands out as a student-friendly destination because it combines affordable living with a high standard of life. Malaysia is estimated to be two-thirds less expensive to live in than the United States and half as expensive as Canada and Ireland.
Here’s a table highlighting the typical monthly expenses you can expect to pay as an international student in Malaysia:
Universities in Malaysia for Education Loan
Several Malaysian universities provide world-class programs and also facilitate access to education loans, making higher education more accessible. Here are some of the top institutions for which you can opt for an education loan in Malaysia:
- Universiti Malaya (UM)
- Universiti Kebangsaan Malaysia (UKM)
- Universiti Putra Malaysia (UPM)
- Universiti Sains Malaysia (USM)
- Universiti Teknologi Malaysia (UTM)
- Universiti Teknologi Petronas
- Taylor’s University
- UCSI University
- Sunway University
- Universiti Utara Malaysia (UUM)
Education Loan Options for Indian Students in Malaysia
Various education loan options are available, each catering to different financial situations. Understanding the distinctions between secured and unsecured loans is crucial in selecting the right financial support.
Secured Education Loans
Secured education loans require the borrower to pledge an asset as collateral. This collateral acts as security for the lender, reducing their risk. In case of default, the lender has the right to claim the collateral to recover the loan amount.
Here are the key features of a secured education loan:
- Collateral requirements include assets such as property, fixed deposits, or government bonds are typically required.
- Interest rates are generally lower due to reduced risk for the lender.
- Higher loan amounts are often available, covering full tuition and living expenses.
- Flexible repayment options, often with a grace period during the study period.
Top Lenders for Secured Education Loans Abroad
Unsecured Education Loans
Unsecured education loans do not require any collateral. These loans are based on the borrower's creditworthiness and financial stability. While they offer easier access, they may come with lower loan amounts.
Here are the key features of an unsecured education loan:
- No collateral asset is required to secure the loan.
- Interest rates are typically higher compared to secured loans due to increased risk for the lender.
- Loan amount is generally lower, covering partial tuition or living expenses.
- Shorter repayment periods with stricter terms.
Top Lenders for Unsecured Education Loans Abroad
Learn more about the differences between secured and unsecured loans in our detailed guide on Secured vs Unsecured Education Loans.
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Eligibility Criteria for Education Loan in Malaysia 2025
The eligibility requirements ensure that students are academically prepared, financially capable, and meet Malaysian visa and university regulations. Below are the standard eligibility criteria you should be aware of:
1. Academic Requirements
For Undergraduate Programs:
- Completion of 12 years of formal schooling, such as a high school diploma, A-levels, or International Baccalaureate (IB).
- Minimum GPA or percentage as required by the chosen university.
- Highly competitive courses like medicine, engineering, or business may require higher GPA or percentage thresholds.
For Postgraduate Programs:
- Possession of a recognised bachelor’s degree with a minimum GPA of 2.5 on a 4.0 scale or at least 75% in equivalent examinations (e.g., UEC).
- Relevant work experience may be required for professional courses, like an MBA.
2. English Language Proficiency
- IELTS: Minimum overall score of 5.5–6.5, depending on the university and program.
- TOEFL: Minimum scores of 500 (Paper-Based Test), 173 (Computer-Based Test), or 60–80 (Internet-Based Test).
3. Financial Requirements
- Students must demonstrate access to sufficient funds for tuition, living costs, and other expenses.
- Minimum annual funds typically required: MYR 70,000.
- Proof can include personal bank statements, fixed deposits, or letters from financial sponsors.
4. Student Visa Requirements
- Offer letter of admission from a recognised Malaysian institution.
- Valid passport with at least 12 months’ validity from the date of visa application.
- Completed visa application forms along with medical clearance documents.
- Health insurance coverage in line with Education Malaysia Global Services (EMGS) guidelines.
Documents Required for Education Loan Malaysia
Banks and financial institutions typically require documents from both the student applicant and the co-applicant, along with supporting financial records. Additionally, for secured loans, collateral documents must be complete and accurate.
Documents from the Applicant:
1. Identity proof: Aadhaar Card, PAN Card, Passport, Driver’s License, or Voter ID.
2. Address proof: Recent utility bill, Driving License, or Aadhaar card.
3. Completed loan application form.
4. Passport and visa documents.
5. Statement of expenses for tuition, living costs, and other study-related expenditures.
6. Existing loan account statements (if any).
7. Bank account statements (last 6 months).
8. Two recent passport-size photographs.
9. Academic records:
- 10th and 12th standard mark sheets.
- Undergraduate mark sheets (semester-wise).
- Entrance exam results (e.g., GMAT, GRE, TOEFL, IELTS).
- An admission letter from the Malaysian university.
Documents from the Co-applicant (usually parents, close relatives, or legal guardians):
- Identity proof: Aadhaar Card, PAN Card, Passport, Driver’s License, or Voter ID.
- Address proof: Recent utility bill, Driving License, or Aadhaar card.
- Bank account statements (last 6 months).
- Existing loan account statements (if any).
- Legal documents related to collateral (for secured loans) as per the bank checklist.
Income Proof for Co-applicant or Guarantor:
For salaried co-applicants:
- Last 3 months’ salary slips.
- Form 16 for the past 2 years.
- Bank account statements of salary deposits (last 6 months).
- Brief statement of assets and liabilities of parents or guardians.
For self-employed co-applicants:
- Proof of business address.
- IT returns for the last 2 years.
- TDS certificate (Form 16A, if applicable).
- Certificate of professional qualification (if applicable, e.g., doctors).
- Bank account statements (last 6 months).
- Brief statement of assets and liabilities of parents or guardians.
Steps to Apply for an Education Loan in Malaysia
With multiple banks and financial institutions offering different loan options, following a structured approach ensures faster approval and reduces the risk of delays. In 2024, select Indian and Chinese students gained access to the Graduate Pass, a work permit allowing them to stay in Malaysia for up to 12 months after graduation to gain work experience and explore career opportunities.
Here’s how the education loan application process typically works:
Step 1: Verify Loan Eligibility
Check your eligibility based on factors like your credit score (CIBIL score for Indian students), required loan amount, academic background, and co-applicant’s financial profile.
Step 2: Dedicated Education Loan Counsellor
An Educational Loan Counsellor (ELC) will review your profile and recommend the most suitable lender based on your financial and academic details.
Step 3: Prepare and Submit Documents
You will receive a personalised document checklist. Submit all required documents accurately, including academic records, identity proofs, financial statements, and collateral documents (if applying for a secured loan).
Step 4: Document Verification
The lender reviews and verifies your documents. This process usually takes around 7–10 business days, depending on the bank or financial institution.
Step 5: Loan Approval and Agreement
Upon approval, you will receive a loan agreement. Carefully review and sign it. Many lenders allow you to track your loan status through an online dashboard.
Step 6: Loan Disbursement
After completing all internal checks, the sanctioned loan amount is disbursed. Depending on your lender’s policies, it may be credited to your bank account or directly to the university’s account.
If you want a step-by-step guide on securing funds, check out our detailed guide on How to Get an Education Loan for Abroad Studies.
How to Secure an Education Loan for an MBA in Malaysia? Reddit Insights!
Financing a Master’s in Business Administration in Malaysia requires careful planning. Understanding tuition fees, living costs, and the loan application process is crucial to avoid delays and ensure smooth funding.
Reddit User in r/Indians_StudyAbroad shared:
"What are the costs and process for obtaining an education loan to study in Malaysia for a Master's in Business Administration, and are there specific loan providers or schemes available for Indian students with a commerce background?"
Insight: Traditional banks often require strong co-applicant credit scores, collateral, and proof of funds, which can delay or block loan approval. Certain NBFCs like Propelld, however, provide more flexible options, faster processing, and lower dependency on strict credit criteria.
What do we infer from the above case?
- NBFCs and specialised education loan providers can be a practical solution when banks hesitate.
- Flexibility in co-applicant choice helps students with limited family credit support.
- Loans can cover tuition, living expenses, and other MBA-related costs without excessive collateral.
Tip: If you face delays or denials from banks, consider NBFCs or education loan platforms that cater specifically to Indian students pursuing MBAs abroad. Compare interest rates, repayment options, and processing times to select the most suitable provider.
If you want a broader view of MBA options for Indian students, including colleges, fees, and the application process, check out our guide on MBA Abroad for Indian Students 2025 with college, fees & application details.
What Expenses Can an Education Loan Malaysia Cover?
Education loans for Indian students are designed to cover more than just tuition fees, helping to manage living costs, travel, and other essential expenses. Here are the expenses typically covered by an education loan in Malaysia:
- Tuition Fees
- Accommodation Costs
- Living Expenses
- Books and Study Materials
- Travel Expenses:
- Health Insurance
- Internet bills, utility charges, library fees, student activities, and other incidental costs.
- Examination and Application Fees
By covering these expenses, education loans make it easier for Indian students to manage their entire study abroad budget, reducing financial stress and allowing them to focus fully on academics.
Education Loan Malaysia Repayment Structure
The repayment tenure, interest structure, and moratorium period can significantly impact your financial planning. Delays in repayment can negatively affect both the student’s and co-applicant’s credit score (CIBIL score for Indian students), making it harder to secure future loans.
The table below shows the repayment structure during the moratorium period by lender type:
Key Considerations When Applying for an Education Loan in Malaysia
Before applying, it’s essential to understand the eligibility criteria, documentation, and financial factors that lenders evaluate. Paying attention to these details helps ensure a hassle-free loan process and timely access to funds.
Below are the essential factors to consider:
1. Co-applicant’s Financial Stability
Ensure you have a co-applicant with a steady monthly income and a good credit score, as this significantly affects loan approval.
2. Who Can Be a Co-applicant
Typically, parents or blood relatives are accepted as co-applicants. In some cases, lenders may allow other close relatives, family members, or trusted friends to serve as co-applicants.
3. Eligibility for Unsecured Loans
If applying for an unsecured education loan, your co-applicant’s income and credit score must meet the lender’s minimum requirements, since there is no collateral backing the loan.
4. Eligibility for Secured Loans
For secured loans, ensure all documents related to the collateral (such as property deeds, fixed deposits, or bonds) are complete and meet the bank’s requirements to avoid delays in approval.
5. Loan Amount vs. Expenses
Verify that the loan covers tuition fees, living costs, and other expenses, especially if planning to study in high-cost cities like Kuala Lumpur or Penang.
6. Repayment Terms and Interest Rates
Compare interest rates, repayment tenure, and processing fees across banks and NBFCs to choose a loan that aligns with your financial capacity.
7. Tax Benefits
Some education loans offer tax benefits under Indian regulations. Check whether the loan provider qualifies for these benefits to maximise financial efficiency.
Getting an education loan for Malaysia might feel challenging at first, but with the right preparation, it becomes much easier to handle. By knowing the eligibility rules, keeping your documents ready, and choosing the right loan type, you can focus on your studies and future career. A well-planned Education Loan Malaysia can make your dream of studying abroad a reality without the stress of financial surprises.
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