A rise in foreign Education Loans in India, led by Tier 2 and Tier 3 cities

Since the previous year, overseas education loans for funding overseas study have doubled as Indian students seek to pursue education in universities abroad. As per a study by a UK-based FinTech company, Prodigy Finance, it has been observed that there has been a 98% growth when it comes to studying abroad loan applications during the first three months of 2022 in comparison to the first three months of 2021.

Tier-II and tier-III cities comprise Vijayawada, Visakhapatnam, Guntur, Warangal, and Tirupati. These cities have contributed the growth of 176%, out of which male applicants were 67%, female applicants were 33% who witnessed a growth rate respectively of 58% and 54%.

The loan amount on average for study abroad applications was $42,000. Due to the COVID 19 onslaught, study plans were overturned and scattered globally, with the study abroad section being a part of this.

As the Ministry of External Affairs (MEA), the pandemic led to a slump of 55% in 2020 in the number of interested student applicants who have moved to study overseas compared to 2019.

Presently, with the mass vaccination drive and a state of normalcy and relaxation in the processes of most visas, the study abroad market is all set to come back to its previous state, and the data from Prodigy Finance have substantiated this.

As per observations of a study, many of the students who have moved overseas were inclined to choose Business, Engineering, Healthcare, Law, Public Policy, and Science. For the majority of the Indians, the United States remained the top choice when it came to pursuing their degrees in engineering.

In 2021, the top 5 colleges for engineering were Northeastern University, Carnegie Mellon University, Arizona State University, University at Buffalo, and the University of Texas at Arlington. If business courses are your choice, then a global selection of universities is good.

Prodigy Finance, Country Head Mayank Sharma, said, “The Indian foreign education landscape has undergone a massive change in the post-COVID-19 era. The global education sector has started to normalize with the opening up of international travel, easing of various restrictions, and ramping up vaccinations. The number of applications for overseas admission of Indian students to foreign universities has gradually been on the rise.”

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