Get an education loan, at a swipe @ Quicklo
Getting
an educational loan in India is very difficult, mainly for students who do not
qualify to study in the top institutes in the country. It is also tough to
garner funds to purchase expensive devices such as tablets and laptops that are
a necessity for most professional courses. This is the key anomaly that
Bengaluru-based financial tech firm, Quicklo, is attempting to solve. Founded a
couple of years ago by Mrigank Shekhar, Kush Srivastava and Rahul Saxena,
classmates from IIT Delhi, Quiklo partners with banks and non-banking financial
institutions to disburse loans.
After
checking credit-worthiness, once a student is deemed eligible for a loan, a
partner financial institution disburses the money directly to the payee instead
of the borrower. Tracing their journey, Shekhar says, “We were looking at ways
in which technology can improve this issue. The personal loan space in India
seemed a great space to start. We realised that with low credit penetration, it
was very difficult for a middle-class family to arrange funds for their child’s
education and assorted expenses, such as tablets and laptops. We started with a
platform that essentially functions as a modem between lenders and borrowers.
We not only provide basic education and gadget loans for the students, but also
provide loans for preparing for competitive exams such the GRE. Parents can go
to our website or download the app, and enter their details, the student’s
details, their financial needs, and course fees. It incorporates an algorithm
that computes their credit worth. We forward the loan requests to our
non-banking financial company partners. Once approved, the loan amount is
transferred directly to the college.”
He
adds, “We are also tying up with colleges and test prep companies to make the
process easier for students.” In the case of loans for mobiles, tablets or
laptops, the loan is given in the name of the student and a background check is
run on them before the loan is disbursed. The founders say, “Our engine checks
students’ credibility by looking at their past exam scores. We also look at
their activity on social media, their level of interactions, before deciding on
the loan. Our algorithms ensure that we do not have many defaults on the loans.
We generate revenue with the processing fee and interest rate charged to
customers. We plan to take this model to more cities across the country and
ensure that more students and colleges are covered. Loans are given for a
one-year period.”
Preventing
fraud is vital and the system has in-built checks in place to flag this at
every level. “Using data points, we have discovered group frauds, such as five
people buying the same phone. Mobile data and contacts are very important. For
instance, if you chat with a defaulter for 10 minutes in the afternoon and
apply for the loan, it is normal. But if you do that at 1 in the morning and
talk for an hour, our engine would immediately flag it.”
Are
more such avenues opening up for students? “Not much. We can disburse loans up
to ₹2 lakh without any collateral, which
bigger financial companies are often not able to. That is the reason we are
able to offer a solution for youngsters.”
Source | The Hindu | 6th September 2017
Regards
Pralhad Jadhav
Senior Manager @ Knowledge
Repository
Khaitan & Co
Upcoming Conference | National Conference
on Transforming Libraries into Knowledge Resource Centres 11th – 12th January
2018, SNDT Mumbai For further details contact Prof Jyoti Bhabal (jyotibhabal@gmail.com
)
Twitter Handle | @Pralhad161978
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