Prodigy Finance’s 2024 data shows that 79% of Indian students applying for study abroad programmes now come from Tier 2 and Tier 3 cities, reflecting a shift in demand beyond major metropolitan areas.
According to the data, students from Tier 3 cities account for 46.2% of applicants, while Tier 2 and Tier 3 cities together make up 78.9% of Indians opting to study overseas. The company said the trend signals a broader geographic base of students pursuing international education.
Prodigy Finance noted that rising costs in Tier 1 cities, particularly housing expenses, are influencing decisions. Families comparing tuition, rent and living costs in major Indian metros with certain international programmes often find the gap narrower than expected. Improved access to funding has also contributed to the shift, the company said.
Sonal Kapoor, Global Chief Business Officer at Prodigy Finance, said overseas education was previously concentrated in Tier 1 cities and wealthier households but is now attracting students from smaller cities. She said many students are selecting funding options based on merit and future earning potential, sometimes without collateral or co-signers.
Kapoor added that competition for overseas education is increasing, with students facing challenges such as collateral requirements from traditional banks, currency fluctuations and rising living costs. She advised applicants to monitor scholarship deadlines and plan carefully, particularly for fall intakes.
Despite visa uncertainties last year, Kapoor said student mobility remained steady, with some students shifting destinations. She noted that the UK saw growth in Indian enrolments.
The International Students IIE Open Doors report cited in the release stated that the United States hosted 363,019 Indian students in 2024–2025, up 10% from the previous year, while enrolment from China declined by 4%.
