Avanse Financial closes first securitisation of education loans
Education-focused NBFC, Avanse Financial Services, and fintech marketplace, Vivriti Capital, on Wednesday closed first securitisation of education loans in the country amounting to Rs 108 crore
Mumbai: Education-focused NBFC, Avanse Financial Services, and fintech marketplace, Vivriti Capital, on Wednesday closed first securitisation of education loans in the country amounting to Rs 108 crore.
"For the education sector, such deals could go a long way in aiding the growth of the industry," Avanse Financial Services chief executive, Amit Gainda, said in a release.
Avanse Financial Services is the NBFC arm of Wadhawan Global Capital and an associate company of DHFL. It lends to students and to educational institutions.
Chennai-headquartered Vivriti Capital addresses debt requirements of its target clientele comprising financial institutions, corporates, small enterprises, and individuals that lack efficient access to financial services.
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Banks are concerned because the economic slowdown and prevalent high interest rates are pushing up non-performing assets (NPAs) to alarming levels and the number of educational loans that are not being paid back is also fairly high as usually there is no security against loans up to Rs 4 lakh.
Cooperative banks-scheduled urban cooperative banks or state cooperative banks-nowadays offer different types of loans, including education loans.
The same engineering and medical degrees, which used to cost you Rs 2-3 lakh per semester earlier, now cost Rs 4-5 lakh. MBA costs more than Rs 25 lakh in premium colleges.