InCred Finance manages growing complexity and delivers a tailored customer experience:
Education loan origination is a complex, human touchpoint-heavy and lengthy process spanning from lead acquisition to application to approval to disbursement of funds overseas. It may be spread over several months.
Nilanjan Chattoraj, Head of Credit and Product for Education Loans at InCred Finance, says that the rise of digitalization and modern technologies have aided in bringing these disparate systems under one platform. Various APIs, integrations with 3rd party systems/software and technologies including reg-tech, digital verifications, web scraping and predictive modelling algorithms – all these have resulted in vast advances in automation thereby improving experiences across the board.
Equally important is that these advances have made it easier and safer for financial institutes to reach the correct loan decisions at the right time. Another significant impact is that these advances have enabled collection of large amounts of precise data that forms the base for training machines.
Various types of integrations and tools help establish the credentials of each customer in a full-proof manner including their KYC, academic backgrounds, tax/income statement, banking, etc. Nilanjan adds: “Black-listed or fraudulent customer databases help us identify potentially hazardous relationships upfront. Software and apps aid in skip-trace and render real-time collections into our systems, thereby making the collections management much more effective.”
Geographic Spread
For those seeking financial assistance, Incred extends education loans for studies in 25 countries worldwide, including the US, Europe, Canada, UK, Australia, and Singapore. Predominantly, loan applications originate from the US (71%), trailed by Canada (13%), Germany (6%), the UK (8%), and other regions (2%).
Within India, Hyderabad stands as the primary hub for education loan demand. Other notable regions from where demand originates are Delhi and NCR, Maharashtra, Gujarat, Tamil Nadu, Kerala, Karnataka and West Bengal.
Nilanjan highlights that education loans range from Rs2.5 million and can escalate to Rs8+ million (unsecured). Loans up to Rs15 million can also be facilitated against collateral security, contingent on factors such as the course, its duration, scholarship availability, the student’s contribution, and other relevant considerations.
Merits & Verification Criteria
InCred sets forth several basic criteria for its educational loans. Prospective customers must be Indian citizens aged 18 or older, and they are required to have a co-applicant with a valid and active bank account in India. Additionally, admission to, or intentions to gain admission to, an eligible course of study are essential prerequisites.
Each loan application undergoes a thorough evaluation process, taking into account various aspects to ensure a comprehensive assessment. Nilanjan emphasizes: “InCred evaluates the student’s profile, including past academic performance and results in entrance tests. Factors such as the chosen course, university ranking, and the country of education are pivotal in the assessment.”
Moreover, work experience, if applicable, and any scholarships received are considered significant determinants. The strength of the co-applicant, including their financial stability and creditworthiness, is also a crucial factor in the decision-making process.
Nilanjan underscores InCred’s commitment to providing tailored evaluations for each loan application to support customers in their educational endeavors. InCred’s holistic approach ensures meticulous scrutiny of every aspect of the student’s and co-applicant’s profiles to offer the most suitable financial solution. Through its personalized approach, InCred aims to empower students to achieve their educational aspirations effectively. ”
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