With global integration, the world is becoming increasingly interconnected, prompting many to pursue successful global careers. Students also strive to develop an international perspective to build expertise to lead the dynamic MNCs and business conglomerates with an international presence as they launch their careers. A large increase in the number of students aspiring to study abroad to access quality education, despite the macroeconomic uncertainties, such as education inflation, rupee depreciation, indicates a strong determination among the student fraternity to pursue their academic pursuits. According to the Ministry of Education, the number of Indian students going abroad for higher education has risen, with ~7.50 lakh students pursuing education abroad in 2022, a 68 percent increase over 2021. It is witnessed that ambitious students aspire to finance their education independently. opting for an education loan.Unlocking Unlimited Opportunities: Why Students Choose to Study Abroad
- Well ranked and famous universities: Leading international universities offer impeccable education and a wide range of study programs. The United States, Great Britain, Canada, Australia and Ireland are the preferred destinations among the study-abroad cohort. Indian students perceive studying abroad as an avenue to gain advanced knowledge, develop refined skills, access state-of-the-art facilities and gain exposure to diverse perspectives. In addition, international universities often offer cutting-edge research opportunities and practical training programs, improving students’ employability.
- Network is net worth: Students from different countries come together through vibrant campuses, expanding their personal and professional networks. By interacting with students, alumni, faculty and potential employers from various nations, students can develop cross-cultural communication skills, improve their intercultural competence and broaden their horizons. This international network not only enriches their personal experiences but also opens doors to future professional opportunities, enabling them to build global connections.
- Sharpen professional and personal skills: Rigorous coursework, assessments, presentations, group discussions and several other activities shape professional skills. International education challenges students to think outside the box, step out of their comfort zone and be independent, encouraging them to develop soft skills. Additionally, the emphasis on critical thinking, creativity and holistic development in foreign education systems attracts Indian students who aspire to develop well-rounded personalities.
- Cultural immersion: Studying abroad is a unique experience that allows students to travel, make new friends, learn new languages and, most importantly, live independently in a new country that offers them many opportunities to explore and capture. Students learn to be culturally sensitive and also learn to welcome new perspectives. Cultural intelligence will open up a new dimension of opportunities as employers will prefer candidates with international exposure who may be best suited to work with diverse teams.
- A strong CV: Foreign education will help build a strong profile sealing an easy transition to a career. Studying abroad demonstrates independence, self-confidence, expansive cultural exposure, adaptability and resilience, all of which are valuable qualities sought by employers. In addition, exposure to different academic systems and educational approaches broadens intellectual horizons and shows students’ appetite for knowledge.
- Student friendly visa policies and benefits: Many countries, such as the United States, the United Kingdom, Canada, etc., offer post-study work visas that allow international students to explore job opportunities or work after completing their education. The post-study work visa often enables students to pursue exciting career opportunities in the host country, providing an avenue for Indian students to gain global exposure.
Role of new-age Non-Banking Financial Companies (NBFCs) in fulfilling academic aspirations
The increase in education inflation from 3.34% in September 2021 to 5.68% in the corresponding month of 2022 has made it challenging for Indian students to study abroad. However, the new age NBFCs have played a crucial role in providing comprehensive financial solutions. According to a credit rating agency, the education loan asset under management (AUM) of NBFCs is projected to almost double to over INR 25,000 crore in FY23 from about INR 13,000 crore in FY22. This substantial growth reflects the growing demand for education loans in India. Below are some benefits that such education focused NBFCs offer to students:
- Comprehensive financial coverage for studying abroad: These NBFCs offer holistic education loans that cover major expenses like tuition, travel, accommodation, living expenses and more. So, students no longer have to worry about education inflation because student loans cover major education expenses. Utilizing AI-powered credit decision making, they also provide lightning-fast education financing solutions, effectively addressing the delayed demand resulting from the pandemic.
- Education loans for various courses: New-age NBFCs have effectively facilitated students’ pursuit of the best educational opportunities by partnering with foreign institutions, offering student loans for both conventional and unconventional courses, and providing consultation during the study abroad journey.
- Hyper-personalized financial solutions: One of the main advantages of education-focused NBFCs is their ability to customize education loan products to meet the specific needs of students. They also offer flexible repayments and streamline the application and approval processes, ensuring a simplified and seamless experience. With their dedicated focus on education financing, these NBFCs are revolutionizing the way Indian students finance their academic dreams and enable them to achieve upward mobility.
The perfect time to study abroad is now! By embracing an international education, students can invest in their personal growth and carve their personalities by learning industry-specific skills. Students should do thorough research to plan their study abroad. Young aspirants can easily overcome financial hurdles by accessing new-age education focused NBFCs that provide hyper-personalized education finance solutions. This article is written by Amit Gainda, MD and CEO, Avanse Financial Services. All opinions expressed are personal.