Why do students take loans in India for studies in the USA? They don?t have credit history in the US and then once they have it, they don?t get education loans once they finish their studies!
Indian Middle class parent, increasingly in non-metro cities also, more open to leverage their assets to send children abroad. (1) Intense competition for entry into Tier-1 institutes in India at both under-graduate and post-graduate levels, while securing admissions abroad seen to be easier (2) Significant difference in ?Perceived? and ?Actual? quality of education when it comes to Tier-2 institutions in India as compared to Tier-2 and even Tier-3 institutions abroad (3) Immigration-led outreach backed by assured jobs by countries such as Canada, NZ and Australia creating a draw amongst Indian students
Avanse business proposition has three key constituents
(1)Specialized Product Offering which involves accreditation check, course stream risk analysis, ranking analysis, research endowment, geographic scope, placements and understanding the macro-economic scenario. (2) Underwriting and loan structuring (3) Service orientation
They are particular about lending to those segments where they expect payback based job pay. Various innovations: pre-visa loans, merit students, etc. They also offer education infra loans as capacity enhancement loans to institutions. 30% customers come via self-marketing, 70% from the 600+ tie-ups. They pay 0.4-0.7% referral fees for foreign course counselors. The overlap between the target segment of PSU banks and private companies is very low as the segments are very different.
