In the last three years, there has been an extraordinary surge in the demand among Indian students to study abroad, with a remarkable fivefold increase in education loans provided by Indian Non-Banking Financial Companies (NBFCs).
These NBFCs are anticipated to experience substantial growth, with education loan assets under management projected to expand by 35-40% to ₹35,000 crore in the current fiscal year.
This growth is driven by specialized business models and an increasing number of students pursuing overseas education.
As the pandemic’s effects subsided, the number of students traveling abroad increased significantly to 450,000 in FY22 and 750,000 in FY23.
Over the past decade, more than 5 lakh students have availed themselves of educational loans to support their overseas studies.
Notably, approximately 40% of all international students in Canada now hail from India, injecting a substantial 10 billion Canadian Dollars annually into the Canadian economy.
Despite recent diplomatic tensions between India and Canada, visa services for Indian students remain uninterrupted, underscoring the significance of this student influx.
The growth in Indian student numbers has been remarkable, with the percentage of student visas granted to Indian students surging from 14.6% in 2015 to 40% in 2023.
Factors contributing to this trend include the recently introduced Post-Graduation Work Permit Extension program and the promising career prospects that studying in Canada offers.
