Mumbai-based finance company Capital India has invested $25 million via equity and debt into education loans platform Credenc, Your Story has reported.
New Delhi-based Credenc offers education loans covering K12 school fee, online upskilling courses, education abroad, and higher education costs. The company is using the investment to build a loan book of 3,000 crore rupees (£294.5 million) by 2025 to facilitate more education loans.
SK Narvar, chairman of Capital India, said: “The annual spend on college fees in India is around $50 billion or 3.5-plus lakh crore, of which only 5% is financed by organised lenders. With Credenc, Capital India Finance Ltd intends to change the segment perception and reduce underwriting risk basis, which will help this percentage go up to at least 15%, aiming to lend 3,000 crores by 2025.”
Avinash Kumar, co-founder of Credenc, said: “Our partnership with Capital India is very strategic – it will give us both balance sheet and cost of capital advantage, which will help in disrupting the education lending segment by providing loans to students who were until now ignored, helping lakhs of Indian students achieve their potential.”
Date published: 21 July 2021