Zoho founder Sridhar Vembu warns students eyeing foreign education: 'Job scene in IT is bad ...'

Thinking of taking a huge loan to pursue education abroad? Think again, urged Zoho founder Sridhar Vembu. Taking to X on Monday, the billionaire wrote about the perils of being inundated by education loans in a volatile job market. He highlighted the financial risks young students face when they borrow large sums to pursue foreign degrees—especially when the job market is unstable.

In one specific instance, he shared the case of a student who borrowed around Rs 70 lakh (approximately $80,000) at an annual interest of 12% to attend a lesser-known university in the U.S. With limited job prospects, especially for international students in the IT field, the individual now faces repayment deadlines without clear employment options.

Job Market Pressures and Hiring Freeze

Vembu pointed out that the situation is especially tough for foreign students due to the current downturn in IT job availability.


"The job scene in IT is bad, especially so for foreign students, and payments on the loan are starting soon..." he wrote.

As Zoho itself is in a transitional phase, adapting to changes brought on by artificial intelligence, the company has reduced hiring activity. He emphasized that their firm avoids laying off employees, which makes them even more careful with recruitment. In such an environment, students burdened with enormous debts may find themselves trapped, with no immediate job or relief in sight.

A Word of Advice for Parents and Students

He stressed the need for families and students to exercise financial prudence. Accumulating large loans for education—whether in India or abroad—is not a wise decision, in his opinion. Instead of chasing traditional degrees through heavy borrowing, Vembu believes the industry needs to rethink how it views qualifications. He encouraged companies to sponsor practical training programs and shift toward accepting non-traditional credentials rather than insisting on formal degrees.

"I urge students and parents to be cautious in borrowing heavily to pursue degrees abroad. Borrowing heavily to pursue degrees in India is unwise too. I strongly believe we should not trap young people in debt in the name of education.,," he wrote.

Zoho’s Commitment to Skills and Training

At Zoho, the focus has always been on enhancing talent and upskilling the workforce. Vembu expressed that the most valuable investment any company can make is in nurturing talent through training and development. He hopes that more organizations will adopt this approach so that young people are not left burdened by unmanageable loans before their careers even begin.

The Man Behind Zoho

Sridhar Vembu, an acclaimed Indian entrepreneur, is the driving force behind Zoho Corporation. A native of Thanjavur, Tamil Nadu, he graduated from IIT Madras and worked in the U.S. before returning to India. Determined to create global-grade software from rural areas, he set up Zoho’s headquarters in Tenkasi. He is widely recognized for his unorthodox leadership and self-sustained business model. In 2021, he was awarded the Padma Shri, and in 2024, Forbes listed him among India’s richest individuals with a net worth of ₹50,000 crore.