Auxilo Finserve, India's leading education-focused NBFC, has expanded its Domestic Education Loan business ‘IndiaEd’ to provide direct fee disbursement to registered schools and colleges across India. The programme covers K–12, undergraduate and postgraduate courses, including engineering, medical and management disciplines. The company announced that all loan applications will be processed digitally, and approved loans will be disbursed within 48 hours directly into the institution's account.
As per research reports, India's education costs are rising at an estimated 10–12% annually, significantly outpacing general consumer price inflation. The financial burden on families is growing substantially. For institutions, this environment makes timely fee collection critical to sustaining operations, meeting payroll and funding planned development.
Anand Subramaniam, CBO – IndiaEd at Auxilo, informed ‘Schools and colleges are dependent on fee income as their primary revenue stream and delayed fee collections affect payroll cycles, defer infrastructure investment and constrain academic planning’.
Key Highlights:
• Household spending on education has increased from ₹1.8 lakh crore in FY12 to ₹8.43 lakh crore in FY24, representing a 4.6-fold rise over the past twelve years.
• One in eight enrolled students drops out before completing their course, with over 62 per cent of all dropouts at the school level.
• The NSO's 75th Round survey found that 24.3 per cent of male dropouts and 17.7 per cent of female dropouts cited financial difficulty. The Gross Enrolment Ratio stands at 77.4% at the secondary level and 56.2% at the higher secondary level.
Auxilo's IndiaEd model addresses this problem for families and institutions. Families can now convert the lump-sum fee obligations into structured monthly repayments as per their preferred tenure. Similarly, registered institutions will receive fee payments directly into their accounts.
"Online applications, 48-hour disbursement, and payment straight to the institution remove friction on both sides. Schools and colleges receive fee certainty, and families get a structured and dignified way to invest in their children's education. This is a formal finance meeting a documented and largely unaddressed gap" added Mr. Subramaniam.
The programme is available to all educational institutions in metro, Tier-1 and Tier-2 cities. Educational institutions wanting to offer their students access to IndiaEd may register through Auxilo's institutional partnership desk at www.auxilo.com.