Eduvanz, a fintech Non-banking Finance Company (NBFC) that enables students to Study Now, Pay Later at 0% interest rates has launched Digital Lending for parents at Zero Cost to pay their ward’s school fees. Eduvanz helps parents to convert school fees into easy and simple subscription-based Zero Cost EMIs with the benefit of repayment in 3 months to 9 months without any processing fee. An amount of Rs 300 crore will be disbursed during the next 3 years. The K-12 edtech market in India is projected to be worth $1.7 billion by 2022, up more than six-fold from $265 million in 2019.
Varun Chopra, CEO and Co-Founder of Eduvanz said, “After a survey conducted involving 10,000+ parents, we understood that there is requirement for a product that could make finance easier for parents as well as the educational institutions in many ways. While the number of the enrolled student population in India stood at 271 million across grades 1-12, around 100 million are part of the middle and top tier school segment. At Eduvanz, we always promise to fulfil our customers’ funding needs for education. Therefore, we are excited to offer this easy and convenient service by joining hands with K-12 institutions to make education easier in the country.”
Eduvanz works with educational institutions across India in maintaining the cash flow of the organization by paying school fees to the management on behalf of parents to make their finance easier. This mode of payment comes with a quick documentation process and combines the expenses for school uniforms, bus transport, trips certification, training, and more.
Additionally, parents get the privilege of complimentary invites to Eduvanz events that include parenting seminars and other workshops and get access to career counselling sessions for the children. Parents can also avail of discounts and deals on over 5000 of India’s top brands and maintain a healthy credit score.
With the help of the Smart Zero Cost EMI offer, Eduvanz has paved the way for schools by boosting admissions and enrolments for better cash flows and improved visibility on the revenue stream. This mode of payment also helps to reduce the rate of drop-outs or no admission due to financial constraints and liquidity issues.
With the assistance of a digital dashboard, educational institutes can easily manage and get live updates of the applicants and can eliminate the need for collections and maintaining accounts manually. It has been found that households with children enrolled in grades 1–12 currently use 41% of their education expenditure on supplementary education. It has been estimated that by 2022, this share will increase to 48% due to the growing need for out-of-school coaching, driven by increasing aspirations, competitiveness, and demand for quality education.