HYDERABAD: Auxilo Finserve, a non-banking financial company that focuses on educational loans, plans to disburse RS 350 crore over the next two years. The NBFC, backed by Balrampur Chini Mills and investor Akash Bhansali, is aiming to chart a growth path in the educational loan segment where traditional banks lag.
“Education loans of about Rs 20,000 crore were disbursed in India in FY17 registering a 17 per cent year-on-year growth. Nearly three lakh students availed education loans to study in India and four lakh students to study abroad. We aim to reach to about 2,500 students by March 2019 and carve a niche for ourselves,” said Neeraj Saxena, CEO of Auxilo Finserve.
Auxilo, which has operations in Mumbai and Hyderabad, will be present in Bengaluru, Chennai, Delhi and Pune by March 2018. It is also focusing on providing loans to schools and colleges for their growth needs. The firm wants to disburse an average loan size of RS 5-7 lakh to students studying in India and RS 25 lakh for those going abroad.
We are confident of making headway in the educational loan segment, as it is difficult for students to get a loan from banks without collateral. We provide collateral-free loans and depend more on students’ ability to repay the loans rather than their parents’ eligibility, which gives us a clear edge in the market,” added Saxena.