Avanse, an education finance company, is looking to disburse loans worth ₹800 crore this fiscal, Chief Executive Officer Neeraj Saxena said.
This will be a significant increase over the ₹343 crore loans disbursed in 2015-16.
“Demand is coming from all segments. With rising fees and the need for finance growing day by day, the demand is huge,” Saxena said.
Almost 2.5 lakh Indian students go abroad every year for higher education, Saxena pointed out.
Indian students annually spend an estimated ₹1 lakh crore for their higher education in India and abroad. This segment is growing at 15 per cent. The total education loan disbursement from the organised segment is only about ₹10,000 crore, indicating the potential for growth of private players like Avanse.
As of March 31, 2016, Avanse had a loan book of ₹530 crore. The total non-performing assets (NPA) position as on this date stood at 0.05 per cent.
Avanse has, in its journey of about three years, funded 4,000 students, both for domestic and overseas education. Nearly 70 per cent of the funding has been for education abroad. Of the ₹800-crore loan disbursals targeted this year, about ₹150 crore will go to setting up of education infrastructure.
With a networth of ₹134 crore, the non-banking finance company is looking to raise additional capital of ₹100 crore this fiscal from existing shareholders to fund its business growth.
Avanse achieved break-even in June 2015.