As rupee tanks, students abroad work longer, seek more loans

September 1 2013

MUMBAI: The rupee's free fall against the US dollar and the UK pound is turning out to be a major source of concern for Indian students returning to campuses after their summer breaks. These students, faced with a currency which has depreciated more than 20% this year against the US dollar alone, are scurrying around to arrange for additional funds to complete their courses and get their dream jobs.

Unlike the fresh intakes who can possibly defer their admissions, these students are feeling the heat in a big way. Having taken loans when the rupee was at 50 to the dollar, they are seeing their overall expenditure go up by anywhere between 10-20%.

HDFC Credila, which specializes in education loans, said it is open to providing additional loans so that these students can finish their courses. PSU banks such as the State Bank of India said they will approach the Indian Banks' Association if there are requests for enhancement of loan amounts from existing borrowers. Banks are also contemplating extending the repayment period of loans taken to pursue higher studies abroad.