Quiklo launches education financing service
Bangalore: Financial technology start-up Quiklo (Olmec Technologies Pvt. Ltd), which offers student loans for the purchase of durable consumer goods such as phones and laptops, has launched an education finance service , the company said in a statement on Tuesday.
Under the new service, consumers, mostly students, can take out loans to pay for course fees or even test preparation fees.
âThe education loan sector has a very low penetration in the country, with only 5% of loans for education and around 10% of personal loans for tuition. While banks’ selection criteria are already strict, they grant loans for a fixed set of the top 100 colleges, beyond which coverage is very minimal. Quiklo, through our education funding platform, aims to empower those who have been denied loans in the past, âsaid Mrigank Shekhar, co-founder of Quiklo, in a statement.
Quiklo partners with banks and non-bank financial institutions to disburse loans. Once a student is deemed eligible for a loan, a partner financial institution pays the money directly to the recipient instead of giving the money to the borrower.
Quiklo was founded in 2015 by Shekhar, Kush Srivastava and Rahul Saxena. The company has so far raised around $ 2.3 million from venture capital firms Accel Partners and TracxnLabs.
âWe really liked the Quiklo team and decided to incubate them in our offices. Education is an exciting space. The founders spent several months on ideation, market research, and product design. Members of our investment team have supported them throughout this process. And we’ve been a part of the Quiklo journey since its inception, âsaid Prayank Swaroop, principal at Accel Partners, in a statement.
Quiklo currently claims to process loans of around Rs 5 crore each month, while non-performing assets account for around 1.5% of total disbursements.
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