The British Council research on ’Landscape of in-country funding options for students from Bangladesh, India and Pakistan to pursue higher education overseas’ aims to understand availability of indigenous funding within these South Asian countries amidst growing numbers of students to study abroad, particularly in the UK.  Technopolis Ltd was commissioned to undertake this research.

The study sought to answer the following key questions:

• Policy approaches to supporting outbound overseas study.
• Funding sources for overseas study, including funding organisations (public, private, and philanthropic sector) and key features such as eligibility criteria, size, scale, and terms and conditions.
• Similarities and differences in the funding sources across the three countries, for example, in the type, size, and scope of funding sources on offer.

Based on the data collected through desk research and qualitative interviews, the research provides a detailed account of each of the local funding sources identified in the target countries for their students to study abroad.  It also attempted to compare key findings across the three countries. A total of 59 unique funding sources were mapped across Bangladesh, India and Pakistan, one of which is common across the three countries.

The study finds that the policy motivations for, and approach to, funding overseas study are similar across the three countries reviewed. These are unlikely to change significantly in the near future, however, new actors and funding modalities may enter the market such as a student loan trust/company that provides low-interest loans with flexible repayment requirements which is being explored in Bangladesh.

The study reaffirms that loans are the most common of the profiled study abroad funding sources in India and Bangladesh.  Most loan products are available nationwide for both undergraduate and postgraduate study. There are also specialised loan schemes available for students from economically and socially disadvantaged backgrounds. Eligibility criteria for loans are also less onerous than for scholarships. Taken together, this means that loans support a wide range of students in terms of levels of study, geographies, and family background. However, dedicated study abroad loan schemes for students are not available in Pakistan and some students may be using general commercial loans to fund their overseas studies.

By comparison, scholarships are limited in quantity and mainly target top performing students. Government funders and philanthropic foundations in South Asia award scholarships to support overseas study for specific student groups, particularly the most academically gifted students to remove financial barriers that these students may face.  Most of the scholarships available to prospective overseas students from the target countries support postgraduate rather than undergraduate study. Some scholarships also target students from socially/economically disadvantaged backgrounds and/or women.

The research shows that India has a comparatively more mature ecosystem to support overseas study with a greater number and wider variety of funders (e.g., non-banking financial company, state government departments and bodies) and funding sources (e.g., loan scholarships, interest subsidies). Further, a number of banks in India use Indian Banks Association’s Model Education Loan scheme which offer favourable repayment terms.  There are specific funding sources that address the needs of students from marginalised or disadvantaged groups such as scheduled castes or tribes, other backward classes, minority religions, and low-income families, and support their access to overseas study.

To know more details, read our full report.