Saturday, 22 June 2013

Slump in rupee affects students, businessmen - Source LT

Confused over gold purchasing
Yogesh Jhaveri, director of VBZ Jewellers, said that the finance minister is asking Indians to not invest in gold; the impact of dollar on gold prices is huge. Now, customers are in a confused state of mind about whether or not they should buy gold. The metal is the only alternative for the government to give the rupee a solid position in the international market. Residents should deposit their gold in banks offering them a high interest rate.

Right from middle class to the industrialists, everybody seems to be suffering hard as the rupee slumping against the dollar impacts their pockets directly. The cost of imported goods is soaring. Even higher education abroad has become costlier and the interest on education loan might also go up. The fall in the value of rupee is only favourable to the industrialists who export goods. 
A student from the city, Manish Chopda (name changed), had enrolled for a Master of International Business course, in a university at San Francisco last year. At that time, the fees for the two-year course was Rs 37.75 lakh and Chopda paid the fees for the first year from his own fund. For his second year fees, he applied for an educational loan. His loan amount will be Rs 19.87 lakh, against Rs 18.87 lakh when the rupee had not fallen so much.
There are several students like Manish who are studying abroad or are planning to go to the US or UK this year but their education budget might not allow that. Those who have applied for educational loans could suffer again while repaying the amount. As the loan amount goes up, so will be the interest on it. 
Nationalised banks are giving educational loans for higher studies, but its limit is Rs 20 lakh. If the fees is more than that, students will have to arrange the money from their own resources. Apart from fees, students will need money for accommodation, food and other expenses.
Working part-time while studying
Bank officials said that most of the students abroad go for a part-time job. They repay the interest amount on their loans from the money they earn. They prefer working abroad because the salary is in dollars and the value in rupees is much higher.
Imported items costlier
The items imported will now be costlier. These items include crude oil, gold, electrical and electronics products, Chinese items, wallpapers, fruits, furniture and imported cars. The prices of essential commodities will also go up soon as the transporters raised the charges after the hike in fuel prices. Indian companies are also hinting at hiking the cost of electronic items.

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