Hyderabad, March 24, 2022: GyanDhan, India’s First Digital Education Financing Platform & NBFC received approximately 7000 study abroad loan applications from Hyderabad and 500 from Vizag since inception to go to the USA, UK, Canada, Australia, and Germany to study MS & M.Tech.at the postgraduate level and Engineering/Technology at an undergraduate level.
In 2016, Hyderabad saw close to 300 loan applications, while Vizag witnessed 50 loan applications with total loan amount requests of 9 Million USD and 2 Million USD respectively.Post that it has picked up momentum.In 2021, the loan amount requests skyrocketed to 103 Million USD for Hyderabad and 5 Million USD for Vizag, which takes up the total loan amount requests to 250 Million USD and 7 Million USD for Hyderabad and Vizag, respectively.
Some of the top universities among others are Algonquin College (Canada), Anglia Ruskin University (UK), Arizona State University (USA), Birmingham City University (UK), California State University (USA), Carnegie Mellon University (USA), Centennial College (Canada), TU Munich (Germany), which are the preferred choice of universities amongst students in Hyderabad and Vizag.
GyanDhan is working diligently with several admission consultants in Andhra Pradesh and Telangana to provide easy access to education loans.
Most of the applications received are for the master’s program, which counts for 60% of the overall applications.The next huge chunk of applications is for PG Diploma and undergraduate degrees courses.
When compared to the gender ratio, females are still less with 33% to 35% who opt for higher education abroad from Andhra Pradesh.
Ankit Mehra, Co-founder and CEO, GyanDhan said, “Historically, students from Andhra Pradesh gravitate towards the USA for their higher education abroad.
There is a shift in trend with an increase in the number of applications for countries like the UK, Canada, and Australia.To facilitate an easy and better loan process, GyanDhan is launching a new Group Loan product.
Students receive the benefit of GyanDhan’s seamless education loan process along with assured cashback and a chance to win sponsored flight tickets to their destination.”
The process to avail a loan at GyanDhan is made easy.
They have partnered with several lenders in the market that enables them to fast-track the loan applications of their customers.To make the process fair and meritocratic, they have built an in-house credit score model, called the GyanDhan score, that assigns a credit score to the students after assessing their academic records, professional achievements, future earning potential, and target course and country.
It eliminates the usual markers of loan eligibility, such as collateral, used by traditional lenders.The loan application is judged solely based on the applicant’s profile.
It effectively increases the chances of loan approval for students who cannot pledge collateral to secure a loan.
According to a report, the number of Indian students opting for higher education abroad grew from 440,000 in 2016 to 770,000 in 2019 and is set to grow further to roughly 1.8 million by 2024, resulting in increased overseas spending on higher education.Compared to this, the number of students domestically increased from 37 million to roughly 40 million between 2016 and 2019.
In terms of states of origin from within India, a report finds that the majority of the student outflow is from states like Andhra Pradesh, Punjab, and Maharashtra, which are amongst the richest states in India with possibly high awareness of the educational benefits.
The significant increase in outflow of students from India over the recent years is driven by factors like better educational quality and outcomes abroad, higher standards of living, gaps in the Indian education system leading to supply-demand imbalance, and upward income mobility of Indian households, among others.
