Prodigy Finance Data Shows 79% of India’s Study Abroad Applicants Now Come from Tier 2 & 3 Cities.

Prodigy Finance’s 2024 data highlights a shift families can feel on the ground: 79% of India’s study abroad applicants now come from Tier 2 and 3 cities, with Tier 3 at 46%, as students look beyond local options for better outcomes.

Studying abroad used to feel like a distant, metro-only dream. It was the sort of thing you heard about through well-connected families who could afford the fees, sort the paperwork, and lean on the right networks.

For most households, the idea of going overseas sat in the “ if you’re lucky” category. Less a plan you could build towards, more a privilege that belonged to someone else. But this picture is changing fast. Today, the strongest growth in study abroad demand is coming from India’s Tier 2, Tier 3, and even Tier 4 cities.

According to Prodigy Finance’s recent data, the centre of interest has shifted beyond the big metros. The data indicates that students from Tier 2 and Tier 3 cities make up about 78.9% of Indians opting for study abroad, with Tier 3 alone at around 46.2%. which is a clear sign that global ambition is coming from a much wider base.

Students from Tier 2 and Tier 3 cities such as Northeast Assam, Meghalaya, Punjab including places like Chandigarh, Coimbatore and Kochi, are all pointing to the same reality. The cost of studying in Tier 1 cities has risen a lot, especially the housing expenses. When families compare tuition, rent, and living expenses in major metros with the cost of certain international programmes, the gap often feels smaller than expected. With better funding solutions available today, many students ask a practical question: if the opportunity exists, why not aim global?

What matters is they’re not doing this for the trends. Many are high-achieving students coming from humble backgrounds, with a clear idea of the career they want. For them, studying abroad is a practical step towards long-term security, for themselves and the people depending on them.

Sonal Kapoor, Global Chief Business Officer at Prodigy Finance, says the demand is only set to grow. “Ten to fifteen years ago, overseas education was largely limited to Tier 1 cities or wealthy households. It was seen as a proud family milestone. Today, students from smaller cities are more informed, more ambitious, and far more strategic. With industries changing rapidly, especially with the rise of AI, students understand that practical exposure and global experience matter.”

Kapoor adds that for many Tier 2 and Tier 3 students, this is not about showing off. It is about changing their circumstances. “We are seeing students choose funding based on their own merit and future earning potential, often without collateral or family co-signers. That shift alone shows how serious this generation is.

Sonal further added, “At the same time, competition is getting tougher and tougher day by day. While traditional banks do offer study abroad loans, many students still find the terms hard to meet. Collateral and a co-signer are often needed, which often block a lot of capable students. At the same time, currency swings and rising living costs are putting extra strain on students’ budgets. We advise students to monitor scholarship deadlines and apply early, especially for Fall intakes, as seats and funding can close quickly due to strong global demand to study abroad.

Sonal also explained that despite visa uncertainties last year, student mobility did not slow down. Instead, many shifted destinations. The UK saw a strong rise in Indian enrolments as students adapted to changing visa landscapes. Kapoor also cautions students against making rushed decisions. “Studying abroad should be a planned investment. We urge students to choose recognised universities with strong employment outcomes rather than switching countries in panic when visa uncertainties hit.”

According to the International Students IIE Open Doors report, it also backs the trends. The US hosted 363,019 Indian students in 2024 to 2025, up 10% from the previous year, while China’s numbers fell 4%. Asia is still the biggest sending region overall, and India is now the main driver of that growth.