GyanDhan, India’s first education finance platform, said it has obtained an NBFC license from the Reserve Bank of India and plans to pay out Rs650 billion in education loans in the fiscal year.
Of which 50 million rupees are offered for short national courses by various actors in educational technology and training institutes. Delhi-based digital first has already partnered with companies like Great Learning and various IAS institutions to offer interest-free educational loans to potential students looking to take short courses.
“To date, we have paid out more than 1 billion rupees in total. The NBFC license will allow us to develop new credit solutions that meet customer needs. We have expanded the loan offering to nearly 3,000 students in the past six months., in partnership with more than 350 institutions in India. It is revolutionary in terms of its multiple features such as: instant loan approval, free EMI, 24 hour payout and the ability to customise the loan product for the institute, “said Ankit Mehra, Founder by GyanDhan
To date, Gyandan has approved 22 loans worth 200 million rupees in the fiscal year, including domestic and foreign education loans.
Demand for funding for such programs rose significantly during the pandemic, aided by the surge in the education technology sector. IAS universities, educational technology platforms and training institutes offer interest-free loans to prospective students in a market where traditional lenders are reluctant to offer loans due to their risk perception.
The company said the data it collects will help refine its model further, improve access to funding for more students, and reduce costs for the end user.