Latest news with #AnkitMehra
Mint
4 days ago
- Business
- Mint
Studying abroad? How prepaid forex cards help manage student expenses
Are you going abroad for studies? Then, a prepaid forex card, which is specially designed for students, will be a handy tool for managing your expenses. Prepaid forex cards for students come with a host of benefits including multi-currency features, locked-in exchange rates and lower transaction fee compared to regular debit and credit cards. Here is a guide on the features, benefits and what you should look for while getting prepaid forex cards. A prepaid forex card for students is a convenient and secure way to carry foreign currency abroad. It offers features such as multi-currency support, locked-in exchange rates, and lower transaction fees than regular debit or credit cards. 'Prepaid forex cards provide multi-currency loading options, online tracking, secure chip-and-pin technology, easy reload functionality, and easy blocking in case of loss or theft,' says Ankit Mehra Co-Founder and CEO of GyanDhan, an NBFC (Non-Banking Finance Company) that has a tie-up with edtech firms. 'Additionally, forex cards lock in the loaded amount, protecting against currency fluctuations,' he says. 'These cards can be used for payments and ATM withdrawals globally. Many service providers offer student-friendly perks such as zero issuance fees, discounted rates, free international SIM cards, and travel insurance,' says Pavan Kavad, Managing Director, Prithvi Exchange, an RBI licensed forex dealer. These cards are widely accepted at merchants and ATMs worldwide, making them an ideal choice for students studying abroad. They come with added benefits like expense tracking through mobile apps and instant card blocking in case of loss. Prepaid forex credit cards are a smart choice for students studying abroad. They offer benefits such as global acceptance, online tracking, and easy reloads from India. They ensure safe, convenient payments and help manage foreign currency expenses efficiently. Students should ensure that their forex card comes with ISIC (International Student Identity Card) as an additional benefit. ISIC provides access to thousands of discounts worldwide on travel, food, shopping and educational resources. 'Combining an ISIC with a forex card helps students save money on everyday expenses and enhances their international experience. Many banks and forex providers also offer combo deals that include both cards for extra savings and convenience,' Kavad says. 'Additionally, pairing a forex card with an ISIC card provides verified student status and also unlocks additional global discounts on travel, shopping, and entertainment, making the student's overseas experience more economical,' Mehra says. Mastercard is offering ISIC as a complementary benefit for all prepaid forex cardholders who are on its network in India. Education finance consultants say that students should ideally load a prepaid forex card with enough funds to cover at least 3-6 months of expected expenses, including tuition fee, rent, and living costs. 'A typical initial load ranges from $3000 to $10,000, depending on the destination and the cost of living. Since forex cards are reloadable, students can top up funds as needed,' Kavad says. 'The load comes with a limit of $7500 daily, which is enough. So, students can load sufficient funds for the first couple of months, and then reload based on actual expenditure patterns,' Mehra says. Incidentally, students can transfer up to $250,000 per financial year for their studies abroad under RBI's 'Liberalised Remittance Scheme'. Consultants say that prepaid forex cards can also be used for large payments such as tuition fees. 'Prepaid forex cards should not be limited to managing only routine expenses. While they are ideal for daily needs like groceries, transportation, and dining, they can also be used for larger payments,' Kavad says. 'However, for tuition fees, it's essential to check if the university accepts card payments. Otherwise, a wire transfer from an Indian bank might be required,' he says. 'Forex cards can safeguard the amount from exchange‐rate uncertainty. Thus, loading larger sums when rates are favourable can shield students from future volatility. Beyond daily expenses, preloading tuition fees in advance locks in favourable rates and minimizes exchange costs,' Mehra says. Most banks issue prepaid forex cards to students who are more than 18 years old. There are banks that issue these cards to students above 12 years of age. In any case, the student should have secured admission in a foreign school/college/university to get the card. Here are the documents that you have to furnish to the bank for availing the card. Self-attested copy of valid passport Self-attested copy of PAN card of the Applicant or Guardian (If the applicant is a major, PAN card of the applicant is mandatory. Additionally, if the forex card is funded by the Guardian, the PAN card copyof the Guardian is mandatory). Self-attested copy of Appointment letter/ Admission letter/University Identity Card Cancelled cheque/passbook copy Self-attested copy of international travel ticket or visa (any one) Copy of 'Passbook' or one year 'Account Statement', used for funding the forex card. Self-attested copy of Form I-20 if the student is going to the US for higher studies. Form I-20, officially titled the 'Certificate of Eligibility for Non-Immigrant Student Status', is a crucial document for international students seeking to study in the US. The signature of the 'Guardian' is required on the application form if the applicant is between 12 to 18 years old. The card will be activated only after complete verification of the KYC (Know Your Customer) documents. Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.
Entrepreneur
5 days ago
- Business
- Entrepreneur
GyanDhan Raises INR 50 Cr in Series A from Classplus and Pravega Ventures
The fresh capital will be deployed to bolster GyanDhan's consultant partnership network, enhance its proprietary SaaS platform, and double the number of partnered financial institutions from 15 to 30. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Education financing platform GyanDhan has secured INR 50 crore in Series A funding from edtech leader Classplus and venture capital firm Pravega Ventures. The funding marks a pivotal moment for the company as it aims to democratise access to education by expanding its footprint across Tier II and III cities and scaling its partner ecosystem. The fresh capital will be deployed to bolster GyanDhan's consultant partnership network, enhance its proprietary SaaS platform, and double the number of partnered financial institutions from 15 to 30. The startup also plans to invest in regional expansion, increasing its physical presence from 30 to over 50 cities, and grow its teams in technology, credit, and sales. Additional funds will be channeled into community-building efforts, including seminars, financial literacy sessions, and student workshops. "This fundraise is more than just capital—it's a strong vote of confidence in our mission to democratize access to education," said Ankit Mehra, Co-founder and CEO of GyanDhan. "We're doubling down on building infrastructure and technology that unlock educational opportunities for millions of families across India." Founded in 2016 by IIT alumni Ankit Mehra (IIT Kanpur) and Jainesh Sinha (IIT Delhi), GyanDhan operates a hybrid model that combines a loan marketplace with its own NBFC lending arm. The platform simplifies the student loan journey through partnerships with 15+ financial institutions, including SBI, ICICI, and Credila, and over 100 education consultants using its SaaS tools. To date, it claims to have originated loans worth over INR 7,000 crore (~USD 840 million) and now sets its sights on INR 18,000 crore (~USD 2.1 billion) in loan originations over the next three years. Mukul Rustagi, CEO of Classplus, said, "We love resilient founders, and the GyanDhan team has displayed the DNA of surviving in a tough but massive TAM." A Pravega Ventures spokesperson added, "Their hybrid model and tech-first approach position GyanDhan as the definitive gateway for education financing in India." With this funding, GyanDhan is set to bridge India's education financing gap—one student at a time.
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Business Standard
20-05-2025
- Business
- Business Standard
Visa revokes, illness abroad: How Indian students may face loan burden
Ritu, a 24-year-old Indian student, had taken a loan of Rs 45 lakh to pursue her studies in the UK. Last month, she fell ill and flew back to India so her parents could care for her. For now, she has had to pause her education abroad. She's not alone. Across countries like the US and UK, many Indian students are grappling with similar disruptions. Some have faced deportation after visa revocations. Others dropped out due to mental health breakdowns. In most cases, these are non-fatal but life-altering setbacks that throw their financial commitments into disarray. < Lenders usually don't cancel loans, even in serious setbacks < Relief (like EMI reduction or moratorium) is given on a case-by-case basis < Supporting documents are mandatory: medical, academic, or immigration-related < Full loan waivers are rare Ankit Mehra, CEO and co-founder of GyanDhan, said Indian lenders rarely cancel education loans, even in cases of distress. "In case of a serious setback, such as illness, deportation, or academic suspension, relief is assessed on a case-by-case basis with supporting documentation from universities, hospitals, or immigration authorities. Based on individual cases, lenders offer moratorium extensions, reduce EMIs temporarily, or allow partial repayment options. However, such relief measures are exceptions, not guarantees," Mehra said. Adhil Shetty, CEO of explained that moratoriums are usually limited to specific hardship events. "Education loan repayment can be paused or renegotiated in situations like serious illness or academic suspension. Many lenders provide a deferment period during which repayments are temporarily paused. However, complete loan waivers are rarely granted. In cases like deportation, repayment is still expected, though restructuring can be requested," Shetty said. Financial and emotional impact on families The toll is not just monetary. Sonam Chandwani, managing partner at KS Legal & Associates, said both students and their families bear the brunt. "A ₹20-40 lakh unsecured education loan at 11-13% interest can balloon to ₹50 lakh or more over a decade if repayments falter. Co-borrowers, usually parents, are legally liable. With many nearing retirement, their savings can be obliterated," she said. Chandwani said secured loans put assets like property or fixed deposits at risk. "Defaulting craters credit scores, blocking future loans for emergencies. The social stigma of default in India adds to the distress, and when paired with mental health struggles or deportation, the emotional toll is immense," she added. What education loan insurance covers < Usually covers death or permanent disability of the borrower < Does not cover temporary illness, visa denial, mental health issues, or academic failure < Families often misread the extent of insurance coverage < Students advised to read exclusions carefully System is rigid, relief not assured Under the Indian Banks' Association (IBA) Model Education Loan Scheme, loans come with a moratorium period covering the course duration plus 6 to 12 months. During this time, interest accrues, pushing up the total payable amount. According to Shetty, public sector banks guided by RBI's 2019 circular may offer some leeway. Private lenders and NBFCs, however, are far less flexible. "Restructuring options like extending the loan tenure or reducing EMIs are available, but banks demand hard proof of distress and approvals are inconsistent. Early loan termination isn't permitted," Shetty said. Mehra added that while GyanDhan has not encountered cases of outright loan termination due to setbacks, they've seen lenders offer support selectively. "We strongly advise students to maintain timely communication and keep documentation ready. Relief options like restructuring or forbearance require exceptional approvals from senior management," he said. Gaps in the loan system < Moratorium covers course duration + 6–12 months; interest accrues < No early termination of loan even if student drops out or is deported < Public banks may allow restructuring; private lenders often rigid < Documentation needed for relief: deportation proof, medical reports < Relief approvals often inconsistent and slow Outdated risk models and lack of insurance coverage Lenders typically assess default risk using the course type, university reputation, and co-borrower's income or collateral, based on RBI's 2016 guidelines. These models don't account for visa revocations or mental health issues. Chandwani said visa revocation is particularly crushing. "It cuts off access to high-wage foreign jobs, and India's ₹5-10 lakh annual salaries can't cover hefty EMIs. The loan system assumes a straight path to graduation and high-paying employment. It's blind to disruptions like immigration rules or illness," she said. She cited an example of a student deported after taking a ₹25 lakh loan. Back in India, he finds a ₹6 lakh job, with a monthly EMI of ₹30,000. "After 90 days of missed payments, the loan is marked as non-performing under RBI's 2018 norms, triggering recovery efforts, including legal notices or asset seizure. Families get trapped in a cycle of debt and despair," she said. Is student insurance the answer? Insurance, too, has its limits. Meet Kapadia, head of travel insurance at said foreign university insurance plans often carry exclusions. "A well-structured student insurance plan usually covers medical treatment, hospitalisation, emergency evacuation, accidental death, and travel-related issues. But many plans exclude coverage for academic failures, mental health, or deportation," Kapadia said. Many students buy supplementary insurance in India, which is more comprehensive. "Indian policies often cover pre-existing conditions, medical emergencies, personal liability, trip cancellations, and loss of documents," he added. But this doesn't solve everything. Shetty said families should be wary of overestimating what education loan insurance covers. "These policies typically cover death or permanent disability, but not temporary illness, visa issues, or academic problems unless specifically mentioned. Families must go through policy documents in detail," he said. Mehra said most lenders require students to take out loan insurance for the full loan amount. "These usually cover death or permanent disability, but in other cases, repayment responsibility falls back on the family," he said. No standard relief policy, slow grievance redressal While RBI's 2021 Banking Ombudsman Scheme allows borrowers to file complaints, relief is not always forthcoming. Chandwani said banks rarely have consistent internal policies. "Some public banks offer ad-hoc concessions, but private lenders often stonewall. Grievance redressal processes are slow, bureaucratic, and rarely offer meaningful relief," she said. She called for structural reform. "The system needs mandated loan insurance, automatic repayment pauses during crises, and coordination with mental health services. Without it, families continue to bear the burden for events beyond their control." The gap is wide. And for students like Ritu, the consequences are immediate, personal, and deeply tied to a financial system that expects the best-case scenario—even when the world has other plans. Automatic repayment pause during verified crises
