Given the current political tensions between India and Canada, Indian banks are becoming careful when processing loan applications from students wishing to pursue their education there.
According to Ankit Mehra, co-founder and CEO of Delhi-based school funding platform GyanDhan, some students may reconsider their educational options due to concerns about visa opportunities and a less welcoming climate.
When processing loan applications, lenders exercise a little caution. Loan sanctions have paused or are being delayed somewhat. Although we do anticipate some slowdown there, the volume of applications hasn’t decreased as of now, said Mehra.
Every year, more students are choosing to pursue their education abroad. According to information from the Indian Ministry of External Affairs, there are currently more than 1.3 million Indian students studying in 79 other nations.
What’s remarkable is that more than 180,000 of these students have selected Canada as their country of study, making it the second most popular behind the United States.
But the recent conflict may cause students to change their minds about certain regions. Students can consider other locations for higher education if there is a delay or pause, said Mehra.
When Justin Trudeau, the prime minister of Canada, claimed that India had a hand in the murder of a Khalistani terrorist, the diplomatic tension increased. India vehemently refuted the claim and temporarily restricted Canadians’ access to visa services.
The outstanding portfolio of student loans held by Indian banks climbed by 17% in FY23, from Rs 82,723 crore the year before to Rs 96,847 crore, according to data from the Reserve Bank of India.
Joel Frisch, our VP of Global Acquisition at Prodigy Finance, which is supported by impact investors and other private qualified entities who invest for earning a financial and social return, added that we have seen new student demand to expand our coverage of Engineering masters courses at University of Waterloo, University of Calgary, University of Ottawa, and Simon Fraser University.