Around 44 per cent of Indian parents consider tertiary education abroad says HSBC Study
Education Abroad – As per the research report published by the HSBC Bank, an estimated 44% of Indian parents are contemplating on sending their wards abroad for tertiary +education, particularly countries like the US, the UK and Australia, a PTI report said. As per the survey, the US stood as the top destination for the parents who preferred to send their children abroad with 52%, which was followed by Australia with 46% and the UK with 44% in the second and third preference respectively. In addition to that, the HSBC Research Report, the other top destinations Indian parents preferred included Canada, Germany, Singapore, New Zealand, Japan, Australia and Switzerland.
Ramakrishnan S, HSBC India Head – Retail Banking and Wealth Management told the news agency, “There is a clear appetite from parents in India to send their children abroad, be it to gain international work experience or to improve language skills of their children. The preference for the Indian parents is to send their wards to the UK, the US and Australia.”
The high cost is the area of concern expressed by the Indian parents in terms of sending their children abroad. According to the report, 42% of the respondents felt that their biggest concerns for parents in India about an international education were incurring a higher cost to them or their partner. Notably, the same sentiments are pronounced in other countries as well, if the feedback given by HSBC study is anything to go by. Parents in the wealthiest nations such as the UK (63%), the US (65%) and Australia (64%) also saw this as a similar challenge, said the report.
According to the PTI report, the survey represented views taken from 10,478 parents and 1.507 students in 15 nations and territories as follows: Australia, Canada, Mainland China, France, Hong Kong, India, Indonesia, Malaysia, Mexico, Singapore, Taiwan, Turkey, the United Arab Emirates, the UK and the US.
Increase in Bad Loans
Meanwhile, the banks in India had reported an exponential increase in education loans going bad. Citing data provided by Indian Banks’ Association (IBA) non-performing assets (NPA) in the education sector, an ET report said that the NPA had shown upward tick of 8.97% at the end of March 2018 in contrast with 7.29% in March 2016. In fact, the Union Government had informed the Lok Sabha that bad loans of PSBs in education sector stood at 5.70% in March 2015.
Those pursuing nursing courses constituted the chunk of those who were not able to repay the loans to about 21.28% of the total education sector bad loan portfolio of the banks, noted the report. This was followed by the engineering students who were pegged at 9.76%, standing third of the total bad loan portfolio till March last year. Furthermore, loans disbursed towards the nursing course in 2017-18 stood at Rs.2, 263 crores as against Rs.1,154 crore in the previous fiscal, added the report.