The Impact of Falling Rupee and Tips to Manage the Extra Expenses

    Updated on: 06 Sep 2023 8 min read

    The falling of the Indian rupee is undoubtedly one factor that affects the education loan and many other aspects of our lives. Of late, the rupee has witnessed a fall owing to a plethora of things happening around us. This is something that we need to understand before moving ahead with its impact on education loans for abroad studies. The depreciating rupee effect is something that is making an appreciable adverse effect on people’s ability to spend in dollars, euros, pounds or any other major currency. Since most of the payments regarding the tuition fee, cost of living, airfare, and other expenditures that form a part of the abroad education loan are done in the above-mentioned major currencies, their valuation is of great importance to us.

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    Top-up loans and refinancing are certainly a good choice, but not everyone can afford the terms of repayment. For taking the loan, one might have to pledge collateral. Even after pledging the collateral merit and creditworthiness, one must fulfill other criteria to get the refinancing. Also, the rate of interest is very high for these loans. In fact, it can be more than 15% in some cases. So, one must think carefully before taking this loan as its implications will be felt at the time of repayment of loans. 

    Another thing that students can do is to choose a floating interest rate. Since bank interest rates also change with the factor mentioned above. A loan that is on the floating interest rate will benefit from the change in rates by the RBI, which is directly linked to inflation and other related factors. However, the banks themselves have now switched to floating interest rates, and in most cases, it is the default interest rate type. 

    And, the last but the best way out to actually extinguish the effect of the depreciation of the rupee is to apply for a scholarship and get one. There are several types of scholarships available for students from different backgrounds. There are private organizations, trusts, government-based scholarships for meritorious students. These scholarships, at times, even cover the living expenses and airfare. A falling rupee is one thing over which the students don’t control. So, it’s in the best interest of the students to choose a way out to ward off as many uncertainties as they can in the journey of their education abroad.

Written by Yogender Panchal

Yogender is a tech enthusiast with specialization in digital marketing. He is currently working at Gyandhan a leading company which provides Education Loan who are studying Abroad. Playing Volleyball, driving a car, traveling, researching new online marketing trends are some of his interest areas that keeps his rejuvenated.

Photo aman jain
Reviewed by Aman Jain

Aman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh students in his 8-year-long journey.

Specializes in:
Education loan , Study Abroad Admissions

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