- In this article, we will delve into the recent data released by the Ministry of Finance regarding the number of students availing education loans to study abroad, and specifically, those studying medicine.
- We will also explore the trends observed in the number of students availing educational loans over the past decade, and the impact of the COVID-19 pandemic on this trend.
Studying abroad can transform one’s life, but it can be challenging for students from low-income families who lack the financial means to pursue higher education overseas.
Introduction
The trend of studying abroad has been on the rise in India, with a growing number of students seeking higher education overseas. While many students are unable to fund their education abroad, educational loans have been a popular option for financing their dreams. Nearly 4.6 lakh Indian students availed education loans to study abroad in 10 years, with over 42,000 seeking loans for medical studies, according to data shared by the Ministry of Finance. Despite the impact of the COVID-19 pandemic, the loans disbursed for studying medicine abroad have continued to rise steadily.
Rise in the Number of Students Availing Education Loans
The data highlights a steady increase in the number of students availing education loans over the past decade. The figure grew from 22,200 students in 2012-13 to over 56,000 in 2020, with a slight dip during the pandemic.
A table showing the amount of education loans disbursed for medicine degree abroad from 2018-19 to 2021-22.
| Year | Loans disbursed for medicine degree abroad (Rs in Crore) |
|---|---|
| 2018-19 | 237.13 crore |
| 2019-20 | 298.97 crore |
| 2020-21 | 243.64 crore |
| 2021-22 | 289.82 crore |
Impact of Covid-19 on Education Loans
The pandemic saw a decline in the number of students availing education loans to study abroad. However, the number of loans recovered in 2021, indicating a return to pre-pandemic levels.
Education Loans for Medicine
Despite the challenges posed by the pandemic and the conflict in Russia and Ukraine, the number of students seeking education loans for medicine studies abroad continues to rise steadily.
Disbursement of Education Loans for Medicine Abroad
The data also shows that a significant amount of loans, worth over Rs 1,790 crore, were disbursed for medical studies abroad in the last 10 years.
Conclusion
The data shared by the Ministry of Finance highlights the crucial role of education loans in enabling Indian students to pursue their academic aspirations abroad. Despite challenges posed by the pandemic and geopolitical factors, the trend of rising education loans for medicine studies abroad is a positive development. It is heartening to see that education loans have provided many students with the opportunity to pursue their dreams of studying abroad. However, it is crucial to note that availing an educational loan is a significant financial decision that requires careful planning and consideration. Students must weigh the pros and cons of taking out a loan and assess their repayment capabilities before applying for a loan.
(India CSR)
