NBFC dedicates Rs 100 crore of loans to TN education ecosystem

The company, which is registered by RBI and started operations in 2017, launched a customer centre office in Chennai to help disburse this loan amount, by the end of 2019. 

To address the growing needs of the state’s school education infrastructure development, including students’ classroom renovation and school uniforms, under one roof, the company designed need-based customised financial solutions to be disbursed to eligible schools/institutes. 

The company will provide financing to more than 100 schools by next year-end. The proposed ticket-size of loans, secured & unsecured, for schools/ institutes could go up to Rs 15 cr or minimum at Rs 20 Lakh.  

As per Govt data, Tamil Nadu has accounted for 50% of all incremental education loans between FY 13 and FY 16. The Indian education loan industry disbursed nearly Rs 20,000 cr in FY 16-17, with a growth of 17%. 

“We believe that education standards in India, particularly in Southern states, shouldn’t suffer due to lack of financing opportunities. We are in the process of identifying schools and institutes providing basic as well tertiary education, to further support them to match up with standardization,” says Neeraj Saxena, MD & CEO, Auxilo Finserve Pvt Ltd. 

We plan to disburse more than Rs 350 crore nationally for the end of FY 19 into both segments – student financing & school financing, he added. Auxilo is planning to strengthen its presence in major metros and Tier-I and II cities, where a large influx of demand is coming up for education enhancement. Currently, it has presence in Mumbai, Hyderabad and now in Chennai. The next centres coming up are in – Bengaluru, Delhi and Pune.