Brijesh Samantaray, Co-founder, Propelld shares the current trends in the education loans how the company is leveraging technology:
Ravi Lalwani: What changes in education preferences and impact of covid on demand for educational loans?
Brijesh Samantaray: In India, recent shifts in education preferences have been significantly shaped by the covid-19 pandemic. There has been a noticeable move towards online and hybrid learning models, with many students opting for flexible courses such as online degrees, certifications, and short-term skill-based programs, especially in fields like IT, data science, and digital marketing. The pandemic has also accelerated the demand for programs that focus on practical skills, with a growing number of students enrolling in courses that offer immediate employability. The pandemic has made students more cautious, leading to a rise in demand for domestic higher education and local vocational training programs.
Which segments of the student loan business most and least impacted?
In the Indian context, the study-abroad segment of the student loan business was one of the hardest hit during the pandemic due to international travel restrictions and safety concerns. However, this segment is now witnessing a gradual recovery as restrictions ease and students regain confidence in international education. Conversely, loans for short-term vocational and skill development courses have seen a surge in demand, driven by the rising need for immediate employment opportunities in sectors such as IT and healthcare. While these loans are generally smaller in amount and shorter in tenure, they have become increasingly popular. On the other hand, the demand for loans for traditional engineering, medical, and management programs has remained stable, as these fields continue to be viewed as secure and lucrative career paths in India.
Briefly describe the digital transformation of education loan origination and management system.
The digital transformation of the education loan process has been a key factor in adapting to the changing landscape of education in India. Propelld, a leading player in the education loan sector, has implemented a highly digitized loan origination and management system that provides a seamless experience from lead sourcing to loan closure. This system offers multiple interfaces for counselors, students, and field officers, ensuring that all stakeholders are connected and informed throughout the loan process.
Customer onboarding at Propelld is driven by cutting-edge technology, with processes in place for collecting Personally Identifiable Information (PII) data via government APIs, performing video verification, and retrieving financial information. This ensures that the onboarding process is not only efficient but also secure, meeting the highest standards of data protection. The underwriting process is powered by an automated credit engine and risk analysis, which enables quick and accurate assessments of loan applications. Propelld’s in-house Loan Origination System (LOS) efficiently manages loan applications, while its document management and payment platforms ensure secure transactions and compliance with Reserve Bank of India (RBI) guidelines.
The foreclosure and National Automated Clearing House (NACH) platforms automate payment processes, making it easier for students to manage their loan repayments. Propelld’s cloud-based infrastructure enhances scalability and security across all operations, ensuring that the system can handle large volumes of applications while maintaining high levels of performance and data security.
Briefly describe your digital initiatives in collections and fraud management for education loans.
In addition to loan origination and management, Propelld has implemented a robust digital framework for collections and fraud management. This framework is designed to ensure high security and compliance with regulatory standards. Propelld’s distribution engine pre-qualifies applications before they are submitted to lenders, minimizing rejection rates by ensuring that all necessary checks are completed upfront. This proactive approach reduces the risk of loan defaults and ensures that borrowers are able to meet their repayment obligations.
Comprehensive fraud checks are embedded in Propelld’s underwriting process, significantly reducing risks before loans are passed to lenders. These checks are continually updated in line with the latest RBI guidelines, ensuring that Propelld’s processes are always aligned with the latest regulatory requirements. Additionally, Propelld’s cloud-based collection platform efficiently manages EMI payments and provides real-time delinquency reporting, ensuring that any issues are identified and addressed promptly.
Overall, the digital initiatives implemented by Propelld have positioned it as a leader in the education loan sector, enabling it to adapt to the changing landscape of education in India while maintaining high standards of security, compliance, and customer service.
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