Mumbai – Poonawalla Fincorp Limited (PFL), a non-banking financial company (NBFC) backed by the Cyrus Poonawalla Group, today announced its foray into the education loan sector, targeting students pursuing higher education at international universities. The move is part of PFL’s broader strategy to diversify its product offerings and tap into the growing demand for education financing in India.
Strategic Expansion
Poonawalla Fincorp’s entrance into the education loan market aligns with its objective to expand its consumer and MSME lending portfolio. By focusing on international education, PFL aims to cater to a specific segment of the market with substantial growth potential. According to industry analysts, the demand for education loans in India has been steadily increasing, driven by rising aspirations among students and parents.
“Education is the most powerful investment in the future, and finance should never be a barrier to ambition,” said Mr. Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp. “With our education loan solutions, we are committed to empowering students to access world-class learning opportunities and build a brighter tomorrow.”
Loan Offerings
Poonawalla Fincorp will offer education loans up to INR 3 crore with collateral, covering tuition, living expenses, travel, books, and insurance premiums. The company is also providing loans up to INR 1 crore without collateral, offering flexibility for students and their families.
One of the key differentiators is the introduction of instant sanctions for loans up to INR 75 lakh, an industry-first initiative designed to expedite the loan approval process. This technology-driven approach is intended to provide a hassle-free experience for both new and existing PFL customers.
Market Opportunity
India’s emphasis on education and the aspirations of its youth have contributed to the robust growth of the education loan segment. PFL sees this as an attractive industry and aims to establish itself as a household name by partnering with families and aligning its business model with customer needs. To support this, the company has partnered with educational counselors across India and onboarded professionals from the industry to deliver need-based financial solutions and improve customer experiences.
Technology and Customer Experience
Poonawalla Fincorp is leveraging technology to streamline the lending process and enhance customer satisfaction. The company’s digital prime personal loan, launched recently, reflects its commitment to simplifying lending and improving the overall customer experience.
“Our focus is on creating customer delight and delivering innovative solutions that address the current credit environment’s demands,” said a company spokesperson. “We are committed to a risk-first approach, ensuring that our lending practices are both responsible and responsive to market needs.”
About Poonawalla Fincorp
Poonawalla Fincorp Limited is a Cyrus Poonawalla Group-promoted NBFC, registered with the Reserve Bank of India (RBI). Headquartered in Pune, the company has a presence across 18 states and 2 Union Territories, with an AUM of ₹30,984 crore as of December 31, 2024. Its financial services offerings include pre-owned car finance, personal loans, consumer loans, loans to professionals, business loans, loan against property, and machinery loans.
The company is listed on both the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).
Conclusion
Poonawalla Fincorp’s entry into the education loan market represents a strategic move to diversify its portfolio and capitalize on growing opportunities in the financial services sector. By offering competitive loan products, leveraging technology to improve customer experience, and targeting a specific market segment, PFL aims to establish a strong presence in the education loan industry.