As pandemic restrictions are easing out and colleges and universities reopen globally, students are resuming their plans to travel abroad leading to an increased demand for education loans.
As per HDFC Credila, MD and CEO Arijit Sanyal said that there is a 2009 percent growth in exterior student loan applications in the first quarter of fiscal year 22 during the first quarter of the prior year. He further said that the growth occurs in all geographies including the USA, Canada, UK, and other European countries.
Last month, the US embassy said that more than 55,000 Indian students and exchange visitors will travel to study in the United States this year and it is “a historic record.” In the UK, a record number of 3,200 students from India have been accepted into university and higher education courses through the country’s centralized application system in 2021, a 19% increase from the previous year.
The co-founder of financial technology company Credenc, Mayank Batheja said that the demand has more than doubled in recent months. They see more attraction from students wanting to pursue higher education in the UK, Ireland, the EU, and Singapore compared to the US. They have also witnessed a growing interest in Russia and the Czech Republic for the first time, he said.
Germany, Australia, and New Zealand have not officially communicated visa and travel guidelines for foreign students. Batheja said that they are very clear about how Germany will accept foreign students today.
International education loan provider Prodigy Finance, which has a $ 1.5 billion education loan book, sees India as its fastest-growing market with a 60% increase in loans as of August this year. Its other key markets include China, Brazil, Pakistan, Mexico, and Peru. There is a 10-15 percent increase in the average note size of the Rs 30 lakh loans, driven by a marginal increase in the tuition fee.
