Chennai: When colleges and universities reopen globally and the government facilitates travel restrictions, students continue plans for study abroad, which results in a surge in demand for education loans.
Educational loan institutions see leaps in student questions out.
But the bank did not see such a surge in their education loan book.
According to HDFC Credila MD & CEO of Arijit Sanyal, there was a growth of 209% in the application of foreign education loans at Q1FY22 during the first quarter of the previous year.
“The growth is across geography – US, Canada, Britain and other European countries,” he said.
Last month, the US Embassy said that more than 55,000 Indian students and visitors were traveling to study in the US this year and it was a “all-time record”.
In the UK, the number of records of 3,200 students from India has been accepted at universities and higher education courses through the state-centralized application system in 2021, an increase of 19% from the previous year.
The reduction in loan interest rates has helped.
Rates fell by 50 basis points (100bps = 1 percentage point) during FY21, and now starting at 9.5% for applications to major schools abroad.
SIFE SBI executives describe their growth as the emergence of hidden requests.
Also, the size of the ticket for the average foreign education loan has increased to Rs 35 Lakh at FY21 compared to Rs 30 Lakh in the previous year.
Mayak Batheja, one of the founders of Fintech Company Credenc, who has the size of the RS 150 Crore book, said, “Demand has more than doubled in recent months.
We see more traction from students who want to pursue higher education in the UK, Ireland, EU and Singapore, compared to the US.
We also see interest in growing in Russia and the Czech Republic for the first time.
“However, Germany, Australia and New Zealand have not officially communicated visas and travel guidance for foreign students.
Batheja said, “We are not very clear about how Germany will accept students abroad today.” Provider of Financial International Education Loans, which have a $ 1.5 billion education loan book, saw India as the fastest growing market with a 60% loan increase in August this year.
China, Brazil, Pakistan, Mexico and Peru are other major markets.
“There is a 10-15% increase in the average ticket size of the loan from RS 30 Lakh, driven by marginal increase in tuition fees,” said Sharma, Head of India for Financial Finance.