EduFi, one of the leading fintech startups, is also working on similar issues where Pakistani students are unable to bear the expensive cost of their college education.

EduFi is partnering with 15 prestigious universities in Pakistan with the objective of increasing the number of students in higher education through its ground-breaking student loan product.

This innovative initiative helps students from economically disadvantaged backgrounds by providing them relief from front-loading college fees and supporting their academic dreams.

EduFi's Innovative Approach to Student Loans

Traditionally, families in Pakistan have had limited options when it comes to financing education expenses. These long-term commercial loans have high interest rates, which many can no longer afford. Understanding this urgency, EduFi's was born as the brainchild of Aleena Nadeem, founder and CEO of the company.

Partnering with 15 Universities in Pakistan

EduFi has so far signed up with 15 universities from Pakistan to give it access to approximately 200,000 students.

The universities have recognized the benefit to students and their experience of studying at their institutions by ensuring they can now access EduFi's finance solutions, changing the face of managing education fees.

Consequently, students are now able to pay their fees monthly, which removes one barrier to educational growth.

Aim to increase participation in higher education.

Eventually, EduFi aims to scale its innovative solution nationwide across Pakistan's college ecosystem. EduFi: In collaboration with potential agreements with the government, we aim to provide an alternative for students across the country to gain affordable access to higher education.

In doing so, EduFi is working to substantially lower the cost barrier to entry so as to make higher education more accessible for all, creating a more just and fair world.

EduFi's Unique Student Loan Model

EduFi's student loan model stands out due to its exceptional features and benefits for students and their families.

Collaboration with Educational Providers

EduFi originated as an idea from the colleges themselves. Among the colleges that cited that their students wanted to pay on a monthly basis rather than once a year or term at a time, recognizing that existing education institutions themselves are lenders, EduFi develops partnerships that allow colleges to offer this payment as an alternative to traditional federal loans to their students.

This collaboration not only benefits students but also provides EduFi with exclusive access to a captive audience, reducing customer acquisition costs significantly.

Lower Interest Rates Compared to Traditional Bank Loans

EduFi's commitment to affordability is evident in its competitive interest rates. The company charges an annual equivalent rate of 29% on its loans, undercutting the cost of traditional bank loans by a substantial margin.

By offering students the ability to spread the cost of college fees, EduFi ensures that education remains within reach for those who would otherwise find it financially challenging.

Development of a New Credit Scoring Model

EduFi developed an innovative credit scoring model to promote responsible lending practices. EduFi not only looks at applicants' bank statements but also at their previous educational records.

These rates were based in part on academic statistics, so students with poor grades at risk of dropping out were offered less in loans than students with higher GPAs and better attendance rates; they were assumed to be more likely to finish their college degrees and to be able to repay their loans.

The holistic credit scoring approach enables EduFi to keep our non-performing loan rates low and provide collateral-free loans.

EduFi, in its commitment to use technology, improves its efficiency in advancing the student loan process. Loan decisions and fund disbursement to schools can be done within 48 hours, allowing students to apply for financing easily through EduFi's mobile app.

This swift and streamlined process sets EduFi apart from traditional lenders, providing students with a seamless experience when accessing much-needed financial support.