Making Education Affordable: India’s Education Finance Startups
As India is developing, the Education system is also flourishing four-folds. From selling jewellery to borrowing money from relatives, parents keep no stone unturned in making their children’s dreams come true. Reports state that approximately 30 percent of parents sell their assets and 20 percent borrow money to fund their children’s education. According to Unitas Ventures, the Edu-Loan Market in India is estimated to be more than $10 billion. Many finance startups have attempted to encash this opportunity recently, including Eduvanz, Credenc, Gyandhan, Finwego, GrayQuest, ISFC, Financepeer and many more. Eduvanz was founded in 2016 and has given loans to 20,000 learners amounting to Rs. 300 crores in India. The neo-banking platform for education, Finwego was founded in 2018 and it offers loans for the working capital needs of the teachers, tutors, school management and other staff. The startup claims to have given loans to more than 3,500 institutions. Founded in 2017 by Rishab & Rahul Mehta, GrayQuest works on the model of ‘Study Now, Pay Later’ and gives the option to pay their children’s fees in up to 12 monthly installments without any additional cost. It also a fee collection platform for 250+ partner schools and colleges.