‘EMI is ₹66,000, salary ₹75,000’: Fintech founder shares a cautionary tale on study loans

A young 40 lakh loan took a master’s degree in the United States hoping to graduate from profitable work. Instead, he returned to India for searching and settling for 75,000-month work.

Almost 88% of its salary with 66,000 monthly EMI disappears immediately. Leaving him only 9,000 to survive. Bengaluru’s Fintech Founder Pramesh Khanna shared this account in LinkedIn, calling it “financial crisis where income is too low to achieve the default of Tuj.”

Khanna explained that this situation emphasizes the discrepancy between the heat of education and the results of the real labor market. He noted that when 90% of income deviates against EMIS, individuals can end more to meet basic costs.

According to him, the precious international degrees are no longer guaranteed high-paid roles, especially in the conditions of visa restrictions, industry equipment and slowly global economy. The consequences, he warned, passes from finance, chronic stress, anxiety and tense personal relationships often follow. For more, the default for such loans can damage one’s credit score, and if family members united the loan, their financial health is also endangered.

Khanna was clear in its position. Also be extremely careful before taking such a mass loan. He advised to make a thorough ROI analysis, factoring, with realistic salary expectations both in India and abroad. He offered lower costs, such as European State Universities or the best Indian facilities such as IIT and IIMS.

According to Khanna, 66,000 ₹ EM should ideally consider only 30-40% of the income of postpartum education, which assumes that at least the least ₹ 1.65 lakh monthly salary is needed. He also suggested having a backup fund that covers the costs of 6-12 months or set in advance for side income.

In order to manage or avoid such a crisis, Khanna outlined several strategies. He advised to recycle the loan conditions, blessing and the EMI cargo, for example, to reduce the 40 lakh loan by 10% more than 15% to 43,000. The addition of income as a result of technical, marketing or consulting can increase 20,000- ₹ 30,000 a month.

Khanna also offered to move livelihoods to more affordable cities, divide and using public transport. For those who have already been admitted, he stressed that he had applied for scholarships and grants. He said that growing in fields like AI or data can create better jobs. If possible, family support can help bridge the gap. In addition, Khanna stressed the development of alternative skills that opens non-traditional or uncontrollable work options and a side rush.

Khanna noted that Khanna noted that the Indian Education Loan NPAs increased by 11.4% in 2023, which many students are fighting with repayment. The debt of the total credit credit of India is located at ₹ 1.2 Lakh Giror, while the United States is standing for the debt crisis of 1.7 trillion students, how popular and systemic this problem has become.

“This story is a cautious fairy tale,” Khanna concluded. “Education loans can open doors or become a lifelong load if it is taken without proper planning.”