AHMEDABAD: The attraction of pursuing education overseas is increasingly appealing to Indian students, including those in Gujarat. A recent report from the State Level Bankers’ Committee (SLBC) in Gujarat indicates a remarkable 95% surge in the number of individuals applying for education loans in the state, highlighting a growing interest in international education.
The surge in applicants seeking education loans can be attributed to various factors such as streamlined visa processes, the emergence of new study destinations, and a growing number of universities welcoming Indian students. Additionally, the potential for enhanced career opportunities post-graduation adds to the allure of studying abroad. During the third quarter of the fiscal year, between October and December 2023, a total of 6,505 individuals in Gujarat applied for education loans, nearly doubling the 3,330 applicants from the same period in the previous year.
Banking officials link the increase in loan disbursements to the rising number of students aspiring to pursue graduate and postgraduate studies abroad.
An anonymous senior official from SLBC Gujarat noted, “There has been a consistent upsurge in education loan disbursements over the past three quarters, primarily driven by the growing interest among aspirants to study abroad. Many applicants sought substantial loans for overseas education, with several banks now actively promoting their education loan products.”
The accessibility of education loans plays a pivotal role in supporting the aspirations of students looking to study abroad. A student, Shloka Joshi, shared her experience, “I recently enrolled in a cybersecurity course in Canada, a high-demand field. With an education loan of Rs 18 lakh, I smoothly transitioned to Canada. Obtaining an education loan is much easier with good scores and clear documentation.”
Notably, there has been a significant increase in education loan disbursements, totaling Rs 595 crore in fresh disbursals during the quarter, compared to Rs 283 crore in the corresponding quarter of FY 2024, marking a substantial 110% rise.
Bhavin Thaker, the founder of a foreign education consultancy firm in the city, highlighted the evolving landscape, stating, “The influx of new banks has led to increased credit disbursements for these loans. Banks are now scrutinizing applications more meticulously, granting collateral-free loans up to Rs 30 lakh to students with commendable academic records who secure admissions to reputable universities.”
Thaker further emphasized, “Pursuing higher education abroad transcends acquiring a degree; it represents a strategic choice for individuals aiming to migrate and work overseas, often serving as a pathway to settling abroad.”
In addition to traditional study destinations like the US and Canada, countries such as the UK, New Zealand, Australia, Singapore, Germany, and the Netherlands are gaining popularity among students in Gujarat. Moreover, an expanding number of students are exploring diverse fields such as psychology, humanities, mass communications, and public policy for their international education pursuits.