Benefits of the 2-Year UK PSW for Indians

Do you know what the 2-Year UK PSW scheme is? If you don’t, then read about it here. Do you know that it is a visa extension for Indian students who plan to live in the UK? Are you aware that with the 2-year UK PSW you can stay in the UK for 2 years after completing your graduation? Have you any idea of the benefits of the 2-year UK PSW for Indians who plan to go to the UK?

Now, if you do know what it is, then let’s get right into the benefits.

Stay in the UK legally

That is the biggest benefit of the 2-year UK PSW for Indians. With this scheme, you can legally stay in the UK for 2 years.

But, how does that help? Moving to the UK itself is an expensive affair. You are probably using all of your savings from the past several years in making the move. And, if you are moving with your family then it just gets more difficult in terms of the finances.

But, that is what you have to understand. With this scheme, you will not have to struggle to look for jobs in the UK.

You can pay off your education loan

If you have taken an education loan to come to the UK, then with the compounding interest rates, you know that it is going to be hard to pay it off by living in India. And, well, if you already have a home loan, then taking another loan just does not make sense.

However, with 2-year UK PSW for Indians, you can easily stay in the UK, work, earn money, and pay some against your education loan each month.

Can I get a full-time job easily now?

There are still questions around it. With the UK government still deciding on the measures to take after Brexit, we are not quite sure whether getting a full-time, high-paying job would become more easy.

However, we can safely predict that it might get easy because of Brexit. How? There are two key aspects of Brexit that we need to understand. You can find them and understand them here.

With Brexit, there is a chance of the job market showing up some vacancies due to the restriction of free movement. And, once that happens, Indians who are sitting on the 2-year PSW scheme will be able to apply for those positions and will have a higher than usual chance of securing a job. Additionally, since you will be in the UK for two years, you will be able to apply to several jobs, give interviews and give the companies enough time to think whether you are the ideal candidate. If you did not have that 2-year stay limit, you would not have had that opportunity.

What if I don’t get a full-time high-paying job? How will I manage my expenses then?

Get a part-time job. That is the biggest benefit of the 2-year UK PSW for Indians. Again, because of the restriction of the free movement of people between the UK and Europe, there will be much higher chances of you securing a part-time job. And by simply working for about 30-40 hours/week, you will be able to earn somewhere between £1200 – £2000. This might not seem a lot for starters, but wait, let me give you a perspective.

The Maths behind the Education Loan

Say, your expenses for a month are about £700. For some months, they might go up to £800 depending on how many times you eat out, go for drinks to expensive bars or clubs. But, on a safer side, if you are living alone in the UK, you will incur expenses around £700. Now, if you get paid about £1500 – £1800/month, provided that you have the ability to do overtime, you can save at-least £800.

And, say, you send £450 back against your education loan of about INR 20,00,000. So that is about INR 40,000 each month. If you stick to that figure each month for about 12 – 15 months, you can easily pay off about INR 4,50,000 reducing your principle value to INR 15,50,000.

Now, while doing your part-time job, you can keep looking for full-time jobs that suit your profile. Because you will be in the UK for 2 years, you can easily apply to several companies, give interviews, and then let the company decide.

Even if you get a full-time job that pays you about £30,000/year, you can make £2500 a month. And once you start earning that money, you can double the EMI you are paying against your education loan. So, after 12 months of working part-time, you start paying INR 1L against your loan. Say, you continue paying that amount against your loan for the next 12 months.

The principle value of your loan will come down to about INR 5L. Which means if you continue working at that company for the another year, you will successfully pay off your loan in less than 6 months.

To conclude, then, you will have paid an education loan of about INR 20L in about three years by,

  1. First, working part-time and looking for full-time high-paying jobs,
  2. Second, finding a full-time high-paying job and doubling your EMI,
  3. Third, continue paying the double (or more) EMI until the education loan is over.

You can start your own business

Do you have a business idea? Once you have completed your degree from the UK, you can think of starting your own business. It could be about anything. Because you will be legally allowed to live in the UK, you will be able to start a business. In fact, you can pitch your business idea to your university. And, if they happen to like it, they might even give you a grant of as much as £15,000!

You can start a future for your family

When you will be in the UK for two years after completing your graduation, not only are you upskilling yourself, but you are also securing a future for your family.

Think about this. When you start earning anywhere between £2000 and £2500, you can think about calling your family to the UK as your dependants and they can live here too. You can then provide high-class education to your children, give your spouse a better platform to work, and overall lead a happy life.

But what about Brexit?

Look, we do not know how Brexit is going to impact the UK economy yet. Moreover, since the trade negotiations between the UK and EU are still going on, we do not know how things will turn out, and in whose favour will the economy tilt.

However, at the same time, it is important for you to understand the major impacts on any economy will take years to actually reflect on the market. And we are talking about 10 – 15 years in that case. By that time you will have gained a considerable amount of international work experience and saved up some money. Basis that, you will be able to:

  1. Apply anywhere else in the world
  2. Apply for settlement in the UK depending on your length of stay
  3. Start your own business back in India
  4. Start your own business in the UK
  5. Grow your own business in the UK
  6. Migrate to Europe if you want

And this list will go on and on depending on your situation and the kind of field you are in. Therefore, my advice to you is that do not let Brexit impact your decision significantly, especially if you are young and unmarried. Because, for now, you can come to the UK, gain significant amount of international exposure, and then eventually decide whether you want to live here or move to somewhere else.

If you do have a family to take care of, then you need to do a bit more research. However, at the same time, if you have ever considered of settling in the UK, then this is the right time to think about that decision much more aggressively.