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InCred bets big on Telangana for education loans

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Hyderabad: Non-Banking Financial Companies (NBFCs) are set to be the fastest growing segment in the Banking, Financial Services and Insurance (BFSI) industry. While a lot of them cater to small and medium enterprises (SMEs), Mumbai-based one-year-old startup InCred is providing loans to various segments in the SME space. This includes private schools, hotels and those institutions which normally may not get loans through traditional means.

In this regard, the startup launched an initiative called EduProgress Loans in Andhra Pradesh and Telangana and is witnessing a lot of traction. These loans are specifically for private schools that do not get any government aid, have 1,000 students till class 10 and has been in existence for 10-15 years. And about 70-80 per cent of all lending done in these two Telugu-speaking States has been for this product. Going ahead, InCred is betting big on this product and plans to lend their EduProgress Loans to 35 more schools by March 2019 from the current 18, in both Telangana and AP.

“While South India was the first region we launched the EduProgress Loans product and in that too AP and Telangana where the two States that we got into first. The higher rate of literacy, higher penetration of education and more disbursement of household income towards education are some of the factors that led us to choose these States to launch our product. And in future we are hopeful of getting more traction and are aiming at targeting overall 50 schools by March 2019,” Saurabh Jhalaria, CEO, SME Business- InCred told Telangana Today.

On the pan-India front, InCred plans to get into 175 schools by the same time on the back of expanding to Western and Northern States.

Overall plan

InCred started operations one year ago and started lending nine months back and lends to key businesses like home loans, student loans and personalised loans apart from providing unsecured credit to SMEs in segments that have been largely underpenetrated by the traditional financial services.

The company started with an equity of Rs 580 crore and going ahead plans to have a balance sheet of Rs 1,500 crore by March 2018 and take this to 3,500 crore by March 2019. And according to Jhalaria, about 60 per cent of this will be from the SME sector while consumer business will constitute the rest 40 per cent. The 550 plus people company is also betting big on unsecured collateral-free loan for students who have got admission into colleges in the US and other countries.

The post InCred bets big on Telangana for education loans appeared first on Telangana Today.



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