Is it worth taking a loan of 40 lakhs if my expected starting salary is only 35k euros?

This is a very important question and a common concern for many students planning to study abroad. Let’s break down your situation:

1. Loan Amount vs. Expected Salary
- Loan Amount: ₹40 lakhs (approximately €44,000 at current rates)
- Expected Salary: €35,000 per year (gross, likely before taxes)

2. Key Considerations:

a) Salary vs. Cost of Living
- In many European countries (like Germany, France, Netherlands), a starting salary of €35,000/year is modest but typical for fresh graduates, especially in non-technical fields.
- After taxes, your take-home salary may be around €2,000–€2,200/month, depending on the country and tax regime.
- Cost of living (rent, food, insurance, etc.) can range from €800–€1,200/month, depending on city and lifestyle.

b) Loan Repayment
- If you take a loan of ₹40 lakhs (~€44,000), your EMI in India can range from ₹45,000–₹50,000/month (assuming 10–12 years tenure, 10–12% interest).
- If repaying from Europe, you’ll need to convert Euros to INR, considering exchange rate fluctuations and remittance charges.

c) Savings Potential
- With careful budgeting, you might be able to save €500–€700/month, but this depends on your expenses and city.
- Repaying the loan will require strong financial discipline, especially if you send money to India for EMI.

d) Career Growth
- Most international graduates see their salaries increase after 1–2 years of work experience.
- If you stay and work in Europe post-study (using Post Study Work Visa), your salary can increase, making repayment easier over time.

e) Alternatives
- Explore scholarships or part-time jobs during studies to minimize loan burden.
- Some countries (like Germany) have lower tuition fees, which can reduce your overall loan requirement.

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Is it worth it?

It can be worth it IF:
- The degree offers strong career prospects and salary growth.
- You are confident of finding a job in Europe after graduation (use the Post-Study Work Visa).
- You are committed to a frugal lifestyle initially to manage repayments.
- You see long-term value in international exposure and career opportunities.

Potential Risks:
- Not finding a job immediately after graduation, which can strain your finances.
- Currency risk (Euro to INR) and possible changes in visa/work regulations.

Recommendation:
Discuss your individual case with our expert counsellors at Pollster Education. We can help you:
- Choose cost-effective countries/universities.
- Explore scholarships and part-time work options.
- Plan your finances and repayment strategy.

Book a free counselling session: