Yeswanth Kumar Muppalla could have been one such person had it not been for GyanDhan, one of the startups assisting in getting student loans. Currently a student of North Carolina University, USA, Yeswanth approached quite a few banks for a student loan, only to face disappointment.
There are 4 startups that presently assist in getting education loans. They are listed below.
Ankit Mehra (left) and Jainesh Sinha (right) are the founders of GyanDhan; Image Courtesy: techcircle.vccircle.com
GyanDhan, founded by Ankit Mehra and Jainesh Sinha, part of IIT Alumni, came to Yeswanth’s rescue. It set up a camp in his undergraduate college and that is where his dream of studying abroad took a flight, after his education loan got approved through this startup.
GyanDhan helps provide education loans for students who wish to pursue higher education in foreign universities. Partnering with State Bank of India (SBI) and Axis Bank, they have provided close to 100 loans to students who are unable to provide collateral. It gives importance to the employability quotient of the student more so than the financial condition.
Student loans worth Rs. 21 crore have been processed so far, with Rs. 27 lakh as the average ticket size, all across India.
OpenTap, founded by Senthil Natarajan, is one such start-up as well. Following the P2P or the peer-to-peer lending approach, it performs the vetting process before it connects the lender and the borrower of the loan. They usually provide loans to blue-collar workers in the auto, textile, chemicals and ancillary industries, whose credit worthiness is determined by the employer. Due to this practice of OpenTap, employers save on the salary advances and the employee is able to fund the education of their children easily. Loan payback can be done through monthly instalments.
Credila, that calls itself India’s first education loan specialist, is an HDFC Limited Company that provides education loans to study abroad in 35+ countries for more than thousands of courses! Attractive benefits include:
Upto 100% finance
Loan amount of even more than Rs.20 lakhs
Repay the loan through easy EMIs over 10 years
Get a loan even before you get admission in a foreign university.
Online Banking is now the simpler option for all and sundry. BankBazaar is an online marketplace where the customers can choose from over 35 real time bank offers that are customised based on their profile, offered by more than 50 banks. Co-founder and CEO of BankBazaar.com, Adhil Shetty, says that this concept gives the customer a better understanding of the product and its benefits as well, and they can decide which financial product suits them the best.
Shiksha is another start-up that operates in the school education sector. Founded by two Chartered Accountants, Jacob Abraham and VL Ramakrishnan, Shiksha is a Chennai based start-up. It provides loans to small store owners, auto drivers and those without a valid or good credit score. They have tied up with schools whose letter of recommendation, stating that the parents have paid the fees regularly, is the only collateral that needs to be provided.