The weak rupee could dampen demand for education loans in the near term, a cause of concern for the banking industry which saw slower growth in deployment of education loans in 2011-12.
In the April-September period, education loan disbursement grew by 18.1%, a big drop from the 23.6% in the year-ago period, the government said last week in its mid-year economic review.
“A large number of parents and students could opt to study in India instead of going out due to the fall in rupee,” M Narendra, CMD, Indian Overseas Bank told HT.
A senior executive at a private sector bank said more students would now look for scholarships. “Only serious students seeking degrees from renowned institutions would try to go now. In the last few years we saw many students go for less known local degrees,” he said.