EduFi Raises Funding for Pakistan Students Loan Program
The Singapore-based company EduFi with a motive of Study Now Pay Later raises $6.1 million to make it easier for Pakistan students to get loan for education.
A new company called EduFi wants to make education in Pakistan easier to get and less expensive for kids. Study Now, Pay Later (SNPL) lending platform powered by artificial intelligence has been launched by EduFi. This platform lets students ask for loans to pay for their schooling.
The platform has its own credit scoring system that looks at how well students are doing in school, how much money they could make in the future and other things. EduFi says that its credit scoring method makes it possible to give out student loans within 48 hours of an application being made.
Since it started two years ago, the business has already teamed up with 15 universities to make the app available to about 200,000 students in Pakistan who have to pay their college, master’s, and PhD fees.
The Securities and Exchange Commission Pakistan (SECP) has given EduFi permission to get a loan license. The company is now waiting for the license to be issued, which should happen in November.
Aleena Nadeem, founder and CEO of EduFi, said, “Many kids in Pakistan make it to high school, but there is a sharp drop in those who are able to go to college.”
Because public schools in Pakistan aren’t very good, about 40% of kids go to private schools instead. Every year, more than $14 billion is spent on their education. In Pakistan, more than half of the adults do not have access to banking services like bank accounts and insurance.
Through its fintech platform, EduFi wants to help the country with its two problems: high poverty and low reading rates. It wants to use the extra money to hire more people, grow its business, and work with more schools and businesses in Pakistan as a partner.
The new company also wants to grow to other developing areas in Asia and Africa, where there is a similar need for ways to pay for school.
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