Indian GyanDhan gets green light from regulator to disburse $ 87 million in loans
GyanDhan, a FinTech loan facilitating education in India, received an NBFC license from the banking regulator Reserve Bank of India to start disbursing loans as the country slowly recovers from the crisis triggered by Covid. Following the permit, the company aims to disburse $ 87 million in education loans in 2021-2022.
The credit would fund short-term national courses offered by various well-known players in educational technology and training institutes across the country.
GyanDhan, which offers interest-free student loans to students wishing to finance their higher education abroad and at home, has already authorized loans worth $ 27 million for this current fiscal year 2022.
“So far we have disbursed over $ 135 million in total. The NBFC license will allow us to design new lending solutions that meet customer needs. We have extended loan offerings to nearly 3,000 students in the past six months, partnering with over 350 institutions in India. It is revolutionary in terms of various features such as instant loan approval, free IMEs, 24 hour disbursement and the ability to customize the loan product for the institute ”, Ankit Mehra, said GyanDhan, founder and CEO.
The New Delhi-based company realized that there are limited funding options for students interested in taking short-term / professional courses with the ongoing pandemic. Traditional lenders are reluctant to offer loans to these clients because they perceive them as high risk products. But the demand for Edu financing has increased significantly, helped by a boom in the electronics technology sector with a high fee structure.
With access to internal partner data and alternative data, including understanding of course quality and final internships, GyanDhan can even approve clients with no credit history. The company believes the data it collects will help it further refine its model, increasing access to financing options for more students in the future while lowering the cost to the end consumer. .
The company has forged partnerships with leading financial players in India, including the State Bank of India, Bank of Baroda, Axis Bank and ICICI Bank.