The education funding preference in Gujarat has witnessed a remarkable shift over the past decade, with an astonishing 79% rise in the number of students seeking education loans. As of FY 2024, education loan disbursals in the state have soared to an all-time high of INR 1,951 crore, up from INR 280 crore in FY 2015. This surge is largely attributed to the growing aspirations of Gujarati students for top-notch education and the skyrocketing costs of tuition fees, both in India and abroad.
According to the latest report by the State Level Bankers' Committee (SLBC) - Gujarat, 21,810 students applied for education loans in FY 2024 alone, a sharp rise from 12,152 applicants in FY 2015. The trend reflects a growing demand for quality higher education within the country as well as abroad.
The data highlights a significant jump in education loan disbursals over the last decade. In FY 2024, loan disbursals of INR 1,951 crores witnessed an incredible 596% increase compared to FY 2015. This exponential growth indicates that education loans have become a critical funding tool for students, especially those aspiring to study abroad.
When compared to the past year, there has been a remarkable 55% increase in education loan disbursals, from INR 1,252 crore in FY 2023 to INR 1,951 crore in FY 2024. Overseas education industry experts believe that various factors like the growing number of international education aspirants, increased university fees worldwide, and improved employment opportunities abroad have contributed to this surge.
In the year 2024, the United States has been a top preference among study abroad aspirants from Gujarat. As such, the average ticket size for education loans has risen. Factors like elevated fee structures in top universities and the increasing cost of living abroad have led to an increase in the loan requirement.
The global interest of Gujarati students is no longer limited to the US and Canada. They are also preferring study destinations like the UK, Australia, New Zealand, Singapore, Germany, and the Netherlands. Gujarati students are exploring these countries for quality education at competitive costs, further driving the demand for larger education loans.
Another notable contributor towards this increase is education loans for studying abroad by the Gujarat Government. Let’s check the details of it ahead.
The Government of Gujarat has been proactive in facilitating higher education for students through initiatives like the Gujarat Education Loan for Economically Weaker Students (GUEEDC) Scheme. Under this program, students aspiring to pursue higher education abroad can avail loans at subsidized interest rates starting just at 4%. The scheme specifically targets students from economically weaker sections and provides financial assistance for various courses, including management, medicine, and technical fields.
With the GUEEDC education loan scheme, the government aims to support deserving students in fulfilling their aspirations of studying at reputed institutions across the globe. This initiative ensures that students from Gujarat have access to the necessary funds to finance their overseas education, regardless of their financial background.
In short, we can say that the sharp rise in education loan recipients in Gujarat underscores the growing demand for higher education, especially abroad.
As the trend continues to grow, students and parents can explore the best education loan schemes early in the application process. For Expert guidance and support in securing the right loan, one can connect with Overseas Education Loan Advisors at Élan.
Stay tuned for more such updates!
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