The online student loan lending platform has diversified its loan portfolio to include loans for skill building courses. It is targeting 45,000 skills-building loans to be disbursed by 2021 through its lending partners using its proprietary student employability assessment framework.
GyanDhan, the online education finance marketplace that has enabled more than 2,000 loans through banks to students in India to pursue higher education abroad since 2016, has announced that it will create a ranking of vocational training institutes in India using data information to tailor loan offerings for people taking retraining, upgrading and vocational training courses.
The education loan lending platform will diversify its loan portfolio to include loans for skill-building courses in addition to study abroad financing offers.
The piloting of this new loan offer is based on the $ 125,000 financing from Gray Matters Capital via its edLABS initiative. The US-based impact investor led Washington-based overseas higher education loan provider MPower Financing’s $ 110 million funding round in December 2018, making GyanDhan his second company of this guy in his wallet.
The funding was provided with the aim of enabling GyanDhan to fill the skills gap of the Indian workforce by making it possible to access hassle-free and affordable loans for vocational training courses.
Speaking about this business development, Ankit Mehra, co-founder and CEO, GyanDhan said, “According to the Ministry of Skills Development and Entrepreneurship, the number of people requiring training in 34 sectors is estimated at 126.87 million. for the period 2017-2022. Loans for skills-building courses not only open up a new source of income for us, but also help us impact more lives through gainful employment. He added: “GyanDhan will plan to disburse over 45,000 skills building loans over the next three years.”
“Data science is at the heart of what we build at GyanDhan. Our goal for the national segment is to create a ranking of training institutes based on the quality of education, placement statistics and future demand for such training. The higher the rank, the better the terms of the sanctioned skill building loan, ”said Jainesh Sinha, Co-Founder and COO, GyanDhan.
Address skills gaps through its Student Employability Assessment Framework.
The fintech start-up will use its proprietary framework for assessing student employability – GyanDhan Score, to help its NBFCs and partner banks structure loan offerings for skills building linked to employability-based outcomes. It aims to make it the de facto standard for granting and pricing student loans in India. In addition, GyanDhan also develops behavioral dashboards to assess the willingness to pay of the loan seeker.