There is a sweeping change in the mindset of the middle class Indian household.
Families are now mortgaging property to send their child abroad in the hope they will be back with flying colours.
For a mother and daughter pair in Durgapur, there’s a strong sense of relief.
The daughter Priyanka is leaving for the UK to study hotel management, a course that will set them back by Rs 14 lakh. However, she has managed to get an education loan of Rs 10 lakh from the State Bank of India.
“For common people, you cannot afford Rs 14-15 lakh, because having that much will obviously matter a lot if you are staying in India. But for abroad, it’s minimum. So educational loan if giving me the opportunity to go and move around,” said Priyanka Nath.
Her mother is the co-borrower. Pratima, who is a widow, had to mortgage her property to the bank, but she has no regrets.
“Marriage can no longer be the be all and end all. If I were to get my daughter married and she faces adjustment problems she would have nowhere to go. This way she is self-reliant,” said Pratima Nath, Priyanka’s Mother.
In the last five years, education loans have made the dream of studying abroad a reality for many students. In fact, those who apply for less than Rs 4 lakh as loan do not have to provide security to banks.
The repayment schemes vary from five years to 10 and so do interest rates from 9.5 to 12.25 per cent.
Note of caution
However, another student from Durgapur strikes a note of caution.
Nabarupa Mukherji had taken a loan to study in the UK and has to pay a monthly instalment of Rs 20,000 to the bank. But it is proving to be a struggle since getting a job is not easy.
“It’s not the case that all the students going abroad with money will be getting jobs no. As the job scenario there is very difficult, very competitive and always home students get preference,” said Nabarupa Mukherjee, Student, Aston University.
So sure there are some flipsides to the growing trend of education loans, over and above the basic problem of beginning your life in debt.
But thanks to the banks, the once distant Indian dream of a foreign degree is no longer a mirage.
For generation next, the mantra is have loan, will travel.
Source: ndtv.com
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