Education Finance

Why Education Finance?

The need for education is well entrenched in the minds of Indian parents, thereby making education a service with tremendous demand in the country. Despite such vast demand, the education sector suffers for poor quality of infrastructure and poor learning outcomes. The rationale driving Shiksha Finance’s business thrust are:

India’s student-aged population is more than 400 million strong, of which only 260 million is enrolled in schools.

A. Large young population

India’s student-aged population is more than 400 million strong, of which only 260 million is enrolled in schools.
Indian parents, across all income levels, view education as the key to unlocking better opportunities for their children. This is all the more so in the case of low-income families.

B. Belief in the importance of education

Indian parents, across all income levels, view education as the key to unlocking better opportunities for their children. This is all the more so in the case of low-income families.
Only a fraction of the population can afford high-end private schools while the rest attend Government schools. In recent years, a new trend is the emergence of affordable private schools, which is fast becoming a preferred option for low income families.

C. Most are not served by the public system

Only a fraction of the population can afford high-end private schools while the rest attend Government schools. In recent years, a new trend is the emergence of affordable private schools, which is fast becoming a preferred option for low income families.
Recognising the demand for affordable quality education, entrepreneurs across towns and villages in India are creating local private schools. Often, they are former teachers or husband and wife teams, who have launched local schools using their own resources and are able to generate 20% to 30% margins at price points that low-income families can afford. This segment, grows bigger every day.

D. Dynamic, local entrepreneurs across India have responded

Recognising the demand for affordable quality education, entrepreneurs across towns and villages in India are creating local private schools. Often, they are former teachers or husband and wife teams, who have launched local schools using their own resources and are able to generate 20% to 30% margins at price points that low-income families can afford. This segment, grows bigger every day.
Schools rarely comply with banks' traditional lending requirements. Loans offered by micro-finance institutions are not large enough for school infrastructure projects. The other alternative in the form of informal money lenders leads to exorbitant interest rates. All of these meager options constrain the growth and innovation of such schools.

E. Affordable private schools lack access to capital

Schools rarely comply with banks’ traditional lending requirements. Loans offered by micro-finance institutions are not large enough for school infrastructure projects. The other alternative in the form of informal money lenders leads to exorbitant interest rates. All of these meager options constrain the growth and innovation of such schools.
India’s student-aged population is more than 400 million strong, of which only 260 million is enrolled in schools.

A. Large young population

India’s student-aged population is more than 400 million strong, of which only 260 million is enrolled in schools.
Indian parents, across all income levels, view education as the key to unlocking better opportunities for their children. This is all the more so in the case of low-income families.

B. Belief in the importance of education

Indian parents, across all income levels, view education as the key to unlocking better opportunities for their children. This is all the more so in the case of low-income families.
Only a fraction of the population can afford high-end private schools while the rest attend Government schools. In recent years, a new trend is the emergence of affordable private schools, which is fast becoming a preferred option for low income families.

C. Most are not served by the public system

Only a fraction of the population can afford high-end private schools while the rest attend Government schools. In recent years, a new trend is the emergence of affordable private schools, which is fast becoming a preferred option for low income families.
Recognising the demand for affordable quality education, entrepreneurs across towns and villages in India are creating local private schools. Often, they are former teachers or husband and wife teams, who have launched local schools using their own resources and are able to generate 20% to 30% margins at price points that low-income families can afford. This segment, grows bigger every day.

D. Dynamic, local entrepreneurs across India have responded

Recognising the demand for affordable quality education, entrepreneurs across towns and villages in India are creating local private schools. Often, they are former teachers or husband and wife teams, who have launched local schools using their own resources and are able to generate 20% to 30% margins at price points that low-income families can afford. This segment, grows bigger every day.
Schools rarely comply with banks’ traditional lending requirements. Loans offered by micro-finance institutions are not large enough for school infrastructure projects. The other alternative in the form of informal money lenders leads to exorbitant interest rates. All of these meager options constrain the growth and innovation of such schools.

E. Affordable private schools lack access to capital

Schools rarely comply with banks’ traditional lending requirements. Loans offered by micro-finance institutions are not large enough for school infrastructure projects. The other alternative in the form of informal money lenders leads to exorbitant interest rates. All of these meager options constrain the growth and innovation of such schools.