Over 4.6 Lakh Students Availed Education Loan to Study Abroad, Says Finance Ministry

The Ministry of Finance (MoF) informed Lok Sabha on Monday, February 13, that a total of 4,61,017 students have utilised education loans for studying abroad in the last 10 years. Out of the total number of students, 42,364 students have availed of education loans for studying medicine, as reported by the Indian Express. Constant growth has also been witnessed in the number of students using education loans over the last 10 years, according to the data shared by the ministry in the parliament, stated the publication.

A total of 22,200 students received education loan disbursement in 2012-13 and the numbers continued to rise until 2020, as per The Indian Express report. During the pandemic, 56,930 students benefitted from the education loans which was less when compared to the students in 2019, when 69,183 students had availed of education loans to study abroad. In 2021, there was a gradual rise that took place, as 69,898 students had availed of education loans.

Reports further state that despite the pandemic and the after-effects of Russia and Ukraine’s war on medical students, the loans handed out for studying medicine abroad have risen steadily. A data from the Ministry of Finance reveals that student loans worth Rs 39,268.82 crore were disbursed in the last 10 years. Furthermore, out of the total, Rs 1,790.16 crore worth of loans were disbursed for students studying medicine abroad.

Loans disbursed for medicine degree abroad:

2018-19: 237.13 crore

2019-20: 298.97 crore

2020-21: 243.64 crore

2021-22: 289.82 crore

As per the data shared, the amount of loans disbursed has been increasing with time and the maximum amount was in the year 2021-22. Media reports state that the loans for study abroad medical education have also risen from Rs 51.86 crore in 2012-13 to Rs 289,82 crore in 2021-22. It is an increase of 459 percent over a decade, according to Career360.

Students availed loans for studying abroad:

2012-13: 22,200

2013-14: 29,373

2014-15: 38,047

2015-16: 45,197

2016-17: 50,029

2017-18: 56,896

2018-19: 60,628

2019-20: 69,183

2020-21: 56,930

2021-22: 69,898

In 2015, the government smoothened the process of applying for education loans by introducing the Vidya Lakshmi portal for students. This website collects all information on student loans and supports students as a single-window system for application and tracking of loans.

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