India Experiences Slow Down in Student Loans for Study Abroad

India Experiences Slow Down in Student Loans for Study Abroad

A weak Indian currency and high interest rates has led to a drop in students taking out loans to study abroad, a trend that may grow in the near term, report the Business Standard and The Hindustan Times. In the April-September period, education-loan disbursement grew only 18 percent compared with almost 24 percent growth in the same period a year earlier, the Indian government said. “I think the slow growth is mainly a function of global uncertainty, which has probably played on the minds of risk managers at banks,” said Prashant Bhonsle of Credila Financial Services. “They may now perceive higher risks for students, as far as job potential is concerned,” Mr. Bhonsle added. Other bankers said the number of students planning to go abroad for higher education may be declining, which might have led to the reduced growth rate of loan disbursals.

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