-Mayank Sharma
The pandemic took the world by surprise and put an abrupt halt to ecosystems around the world, including the education system. COVID-19 caused a major upheaval in the global education ecosystem. With classes moving to the virtual mode overnight, the education fraternity was forced to adapt to the digital mode with limited infrastructure and understanding of the medium. While students were quick to adapt, travel restrictions across the world made students reconsider their options and aspirations of going abroad.
According to data from the Ministry of External Affairs, a 55% dip in the number of applications was recorded in the academic year 2020-2021. As the world is gradually moving back to normalcy, there is a significant hike in the number of applications for overseas education.
It has been forecasted that the overseas education market will achieve pre-pandemic numbers as the world gradually revives and we have observed this trend at Prodigy Finance. “We have witnessed a 98% growth in study abroad loan applications in the first 3 months of 2022 compared to the first 3 months of 2021 with tier-II and tier-III cities seeing a significant uptick. In fact, Vijayawada, Visakhapatnam, Guntur, Warangal and Tirupati among others have contributed 176% of this growth.”
Due to the pandemic, education moved to the digital mode which has enabled students from smaller cities access to quality education with some of the best instructors from around the world. The phenomenal growth of study abroad focused ed-tech platforms has also contributed significantly to this growing trend. With leading Indian test prep and admission counselling centers moving online, students across the country now have access to India’s best instructors and counselors. These study abroad focused Edtech platforms have been instrumental in helping students reach their education goals by leveraging their existing partnerships to facilitate connections between Indian and global educational institutions.
Additionally, students also have access to better counseling and training. Students coming from smaller cities can now make informed choices from a larger pool of resources.
However, for a majority of the students, the primary roadblock in continuing higher education is funding. Documentation, loan sizes, guarantors, or complex processes further discourage students from pursuing higher education. But with the introduction of hassle-free and completely digital loan processes, transparent systems and easy repayment methods, students no longer have to give up on their dreams due to funding challenges.
As the world opens up more gradually, students look forward to better opportunities. Going forward, the merit-based model will help students access credit and fulfill their study abroad ambitions. This model not only makes the process simple and approachable but also helps build students’ confidence in their merit.
Mayank Sharma is the country head, India Prodigy Finance
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