Students and families must stress test repayment capacity based on Indian salary standards.
Rising study-abroad costs are prompting families to use education loans strategically while preserving savings, liquidity and long-term financial stability, says Yogesh Rawat
According to a 2021 Redseer report, India's overseas education market is estimated to more than double to $80 billion by 2024.
'With tuition fees for international students rising, education loans have become critical for bridging the gap between savings, scholarship, and full cost.'
Compared with a year ago, the effective cost of studying abroad for Indian students has increased by roughly 10%-12% due to currency depreciation and rising living costs.
'It reduces the immediate financial strain on your family and helps you take control of your finances without being dependent on your parents.'
The Enforcement Directorate has filed a chargesheet against former Reliance Communications president Punit Garg and another individual in connection with a money laundering probe linked to an alleged Rs 40,000 crore bank loan fraud.
The biggest challenge with public sector banks is the processing time, which is why starting early helps.
'The order has no practical effect unless and until he chooses to enter Singapore.'
You are an engineering graduate and want to pursue higher studies overseas. Do you know how to get an education loan for this purpose? Our education loan expert Harsh Roongta has all the answers.
A look at education consultants, educational loans and other ways to manage the steep costs of internatinal studies.
Here are answers to some generic queries that rise in regards to educational loans.
Calls for a rethink on why some sectors should get more easy credit than others
'We currently have new proposals worth Rs 1.48 trillion in the pipeline.'
There are certain key points that one must know when while applying for education loans
India's privatisation push, once projected as a cornerstone of economic reform, has suffered another setback, with the Centre set to call off the IDBI Bank stake sale, highlighting the political and structural constraints shaping the country's disinvestment policy, experts say.
For Indian parents, sending a child abroad for a three-year degree could deplete 48% of their retirement savings, while a four-year degree may consume up to 64%.
'We are profoundly energy-dependent on the Gulf. That dependency must now be redirected towards the United States, because we require American permission to procure oil.' 'We additionally require Iranian permission to acquire oil from that source. So India now has to seek two separate permissions merely to secure its energy supply.' 'Should we be compelled to source from America, or from Venezuela -- which is, in effect, American-controlled supply -- that will inevitably carry a price premium, an elevated shipping cost, and a considerably extended delivery timeline, given the distances involved.'
The foreign degree no longer sells itself, families are doing the math, and for many, the numbers just don't add up.
By choosing your study destination carefully, leveraging government schemes, comparing loan options, and adopting frugal living practices, Indian students can acquire global credentials without mortgaging their futures.
The Indian government has expressed its disagreement with the IMF staff's 'baseline' assumption that the 50 per cent US tariffs on its goods exports 'would remain in place indefinitely', based on which the staff pegged the country's GDP growth at 6.6 per cent this year, and pared its 2026-27 projection by 20 basis points to 6.2 per cent.
Education finance is a complex and dynamic sector. There are too many variables -- the course, the calibre of students, the universities, and the job prospects once the course is over, notes Tamal Bandyopadhyay.
Low admissions, loan-funded capital expenditure pull down creditworthiness of many, with banks wary of lending.
'The increase in the limit for TDS on interest to Rs 1 lakh will ensure greater cash flow in the hands of senior citizens.'
Overseas education consultant Karan Gupta hosted a chat with readers on September 2. The transcript.
Take an education loan. Encourage them to freelance while studying.
Given the prevailing employment market, uncertainty in the United States and the exorbitant expenses associated with studying abroad, it would be prudent for your son to acquire professional experience in India initially, advises rediffGURU Pananjay Tiwari.
Public sector Indian Overseas Bank on Monday announced 0.50 per cent hike in benchmark lending rate to 14 per cent with effect from August 16, but spared housing loans up to Rs 30 lakh and education advances from the increase.
These global scholarships cover a range of programmes at the undergraduate and post-graduate level. Read on for details
On his 200th birth anniversary, Utkarsh Mishra traces the life, thought, and legacy of Dadabhai Naoroji, the Grand Old Man of India.
Education sector has reasosn to cheer Budget.
The primary and immediate impact of a depreciating rupee is on the importers who will have to shell out more for the same quantity and price. However, it is a boon for the exporters as they receive more rupees in exchange for dollars. The rupee depreciation has wiped away some of the gains that would have accrued to India from international oil and fuel prices dropping to pre-Ukraine war levels.
The government on Friday announced that no tax will be charged on overseas spending of up to Rs 7 lakh in a year using debit or credit as it looked to douse backlash from its earlier decision of levying TCS on all spending. The government had earlier this week brought overseas credit card spending under Liberalised Remittance Scheme (LRS). This meant that any spending using credit cards overseas would attract a 20 per cent tax from July 1.
Do not sound as if you intend to permanently settle overseas, warns Ritika Gupta, CEO and counsellor at AAera Consultants.
Ashwin Shenoy from Australia tells us how he funded his education and advices students to consider working part time after college.
'With the current situation in the global job market, students come back with an added burden of educational loans.'
Ask rediffGURU and PF expert Milind Vadjikar your insurance, stocks, mutual fund and personal finance-related questions.
Byju's, India's most-valued startup, has decided to put two of its key assets -- Epic and Great Learning -- on the block to generate $800 million-$1 billion in cash, with an aim to meet the edtech firm's various commitments, including repaying the entire $1.2 billion term loan B (TLB) within six months, according to sources. The cash-strapped company has proposed repaying $300 million of the $1.2 billion loan in the next three months, depending on whether the lenders accept Byju's amendment proposal, said the people familiar with the development. "This loan repayment proposal has been submitted to the lenders and conversations are going in the right direction," said a person in the know.
rediffGURU Sushil Sukhwani offers expert advice about pursuing higher education abroad.
There is too much focus on building, infrastructure, the number of teachers (as opposed to quality), number of laboratories and so on, says Vineet Gupta.
