Auxilo Finserve Pvt Ltd, a Mumbai-based start-up with focus on education loan segment, opened a branch in Hyderabad on Friday. It plans to disburse ₹75-crore loan in the next 15 months to students in the city, for their graduation and post-graduation courses.
This is the second city the company has made a foray into, with plans to go to Bengaluru, Chennai, Pune next.
Addressing press persons here, CEO Neeraj Saxena highlighted the growth potential for players focused on the segment. Private firms such as the start-up can play a major role in the area, he said, adding that, those able to disburse loans faster stood to benefit.
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Auxilo is in the process of deploying a technology-based lending system that will help in accelerating the loan disbursement process.
Besides students, the company would extend loans to educational institutions.
By March 2019, Auxilo plans to have a loan book size of ₹350 crore, of which ₹275 crore would be disbursements to students, and rest to institutions. There is a large segment of schools, small in the size of their operations, that require finances to expand.
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To queries, he said the company would be disbursing loan to students at interest rates ranging from 10-13%. The company will offer both secured and unsecured loans and provide 100% funding.
‘Largest market’
Hyderabad is one of the largest markets for education loan in India, with a number of students going to pursue courses in the US. Around 30,000 students go abroad every year for various courses, he said.