Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts

Monday, August 4, 2025

Think Twice Before That Big Education Loan: Zoho’s Sridhar Vembu Sounds the Alarm on Studying Abroad

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5 Key Takeaways

  • Zoho founder Sridhar Vembu warns students and parents against taking large education loans, especially for studying abroad, due to unstable job prospects.
  • He highlights the current downturn in IT job opportunities, making it particularly tough for international students to secure employment after graduation.
  • Vembu urges financial prudence and advises against trapping young people in debt for the sake of education, whether in India or overseas.
  • He advocates for companies to invest in practical skills training and to value non-traditional credentials over formal degrees.
  • Zoho focuses on talent development and upskilling, aiming to create opportunities, especially in rural India, rather than relying solely on traditional academic qualifications.

Thinking of Studying Abroad with a Big Loan? Zoho’s Sridhar Vembu Has a Warning for You

Are you or your child dreaming of studying abroad, even if it means taking a huge loan? Before you sign those papers, Zoho founder Sridhar Vembu wants you to pause and think carefully.

Recently, Sridhar Vembu, the well-known Indian entrepreneur behind Zoho Corporation, took to social media to share his concerns about students taking on massive debts for foreign education. He pointed out that the job market, especially in IT, is not as promising as it once was—making it risky to borrow large sums for overseas degrees.

A Real-Life Example: Big Loan, No Job

Vembu shared the story of a student who took a loan of about Rs 70 lakh (around $80,000) at a steep 12% interest rate to study at a lesser-known university in the US. Now, with the IT job market struggling and companies hiring less, this student is facing loan repayments but has no job lined up. This is not an isolated case—many international students are finding it tough to land jobs after graduation, especially in tech fields.

Why Is the Job Market Tough?

According to Vembu, the IT industry is going through a rough patch. Even Zoho, a major tech company, has slowed down hiring as it adapts to changes like artificial intelligence. While Zoho tries to avoid layoffs, it also means they are extra careful about bringing in new employees. In such a climate, students who have taken on big loans may find themselves stuck—no job, but huge debts to pay.

Advice for Parents and Students

Vembu’s message is clear: Don’t put yourself or your children in a debt trap for the sake of a degree, whether in India or abroad. He believes that the industry should move away from focusing only on traditional degrees and instead value practical skills and training. He encourages companies to invest in skill-building programs rather than just looking for formal qualifications.

Zoho’s Approach: Skills Over Degrees

At Zoho, the focus is on nurturing talent and providing training, not just hiring people with fancy degrees. Vembu hopes more companies will follow this path, so young people aren’t burdened by loans before their careers even start.

Who is Sridhar Vembu?

Sridhar Vembu is a respected entrepreneur from Tamil Nadu, known for building Zoho into a global software company from rural India. He’s been recognized with the Padma Shri and is one of India’s richest people.

Bottom Line: If you’re considering a big loan for education, think twice. The job market is uncertain, and there are other ways to build a successful career without drowning in debt. Focus on gaining real skills—and make sure your financial decisions are wise.


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