Today, higher education has become much more than a milestone or a fancy degree for most students. Instead, most folks are becoming outcome-oriented, applying for courses abroad and now considering the potential return on their financial investment. This has naturally opened doors for students to explore new destinations for higher education, and financial institutions, specifically NBFCs, have a significant role to play in this mix.
Read along to learn how Indian students are approaching their higher studies aspirations.
The shift in mindset: what is an outcome-oriented perspective?
For the longest time, most students who sought higher education, based their decisions on a university’s or a country’s reputation. While that formula worked, the changing global landscape meant it no longer guaranteed success after course completion. With many students holding law or tech degrees from reputed institutions struggling to find employment, the next generation of students began to rethink their choices.
Besides, the rising cost of education has also led new-age applicants to ask questions like, “What is the placement rate for this course?” and “What is the average starting salary?” Add to this the complicated visa rules of the big four – the US, UK, Canada, and Australia.
This has led to a major reset in mindset, with both students and their parents/guardians adopting an outcome-oriented approach. The new approach determines everything from the course the student picks to the country to the overall ROI.
The destination shift: beyond the big four
The US, UK, Canada, and Australia, home to some of the most prestigious universities, were the preferred destinations for students pursuing higher education until a few years ago. Though demand for these countries among students remains high, a significant focus has also shifted to countries like Germany, France, the Netherlands, Sweden, South Korea, Switzerland, and Italy, given the ROI they offer in higher education.
In the last five years, countries such as Germany, Ireland, New Zealand, Japan, and Singapore have seen a significant increase in the number of Indian students. Ireland has seen the most dramatic surge in the last two years, largely due to its status as a major English-speaking country in the EU and its favourable post-study work policies. Indian students’ enrolment hit a record high of approximately 9,000+ enrolments, representing a 30% increase from the previous year. Projections suggest this number will cross 10,000 enrolments in 2026.
Singapore offers abundant opportunities for students with finance degrees. Germany, on the other hand, is an engineering epicentre that has been welcoming international students. South Korea has transitioned from a niche destination to a mainstream contender.
A paradigm shift towards future-focused courses such as AI, Bioengineering, and Robotics has resulted in an almost 40% jump in the enrolment of these courses. Relaxed visa rules and increased part-time work hours are the key drivers making South Korea a highly attractive option for Indian students from middle-income families. This has also led students from Tier 2 and 3 cities in India to turn their heads towards higher education abroad as their next milestone.
Education loans: the fuel behind higher education aspirations
With more students opting for higher education each year, the demand for education loans has gone up, too. Apart from tuition fees, other costs associated with higher education, and the depreciating value of the Indian rupee make it a fairly expensive affair, making an education loan almost a necessity rather than an option.
With new-age NBFCs offering student loans with more flexible repayment options than traditional institutions, families are choosing them over dipping into savings or liquidating assets to fund education. With access to more funds, students can choose better universities and courses with potentially higher ROI. According to a 2024-25 study, nearly one in every three students pursuing higher education abroad took an education loan.
The number of aspiring students accessing education loans remains far below the true potential of this segment. At our core, we are committed to changing that reality. Education Loans will play a critical role as a strengthening support, enabling them to be more independent, and introducing financial solutions that unlock opportunities and transform ambition into achievement
Vikas Pandey, executive director, Poonawalla Fincorp
The role of NBFCs: enabling more students to pursue education abroad
While banks have been the traditional lenders for education loans, NBFCs are dominating the lending space. Several NBFCs have tailored education loan plans designed for students’ convenience, with flexible repayment options.
Companies like Poonawalla Fincorp have been the silent enablers, helping more students pursue their higher education dreams through a digital journey, collateral-free loans, competitive interest rates, quick approvals, minimal documentation, and flexible repayment options, unlike those of traditional banks. These lenders offer flexibility to apply for education loans both online and in person at their branches, with dedicated support.
Besides, NBFCs tend to follow a robust, outcome-led credit underwriting process, in which funds are sanctioned based on the likelihood of the applicant’s future ability to repay. This creates a two-way ROI-based approach for both the lender and the applicant.
To conclude
The global education landscape is undergoing a profound transformation, and Indian students are at the forefront of this shift. Prestige of an institute alone is no longer the guiding compass for higher education choices; instead, outcomes such as employability and long-term ROI have become the true north.
NBFCs continue to dominate the education loan space as agile and outcome-driven lenders, fuelling student aspirations and ensuring that access to finance keeps pace with evolving ambitions. As students explore destinations beyond the traditional Big 4, they are reshaping the map of international education with sharper, more pragmatic decisions.
Together, these forces are creating a new era in which higher education is not just about degrees but about futures carefully planned, strategically financed, and globally aligned.
About the author: Vikas Pandey is executive director at Poonawalla Fincorp. Poonawalla Fincorp is a leading NBFC in India, offering digital-first lending solutions built on transparency, governance, and a customer-centric approach. The company focuses on enabling responsible access to credit for individuals and businesses across India.
