Student Financing

Banks have been offering financing to many students but there still does not seem to be a lot of consistency and clarity in the process. A few dedicated student loan companies like Credila have emerged. They do a good job because of their narrow focus, but still mostly focus on the high-end customer looking for large loans /  going abroad etc.

The other lot that finds financing easily is the students who get accepted into the IITs and the IIMs, where the future prospects are extremely bright and risk very low.

However, as one comes down the pyramid there is a large mass of average to above-average students who come from very middle-class backgrounds. These people often come from less organized backgrounds such as farming or small local businesses like tent houses or Kirana stores. The documentation of earnings and even bank accounts are often iffy in such cases. However, these students are often very deserving of student loans. Unfortunately, the current systems essentially turns these students away. They do not fit into the clean, formal boxes created by banks based on which approval is provided. In Mohammad Yunus’s words, only those who do not need loans are actually loan worthy !!

At UEI Global we have come up with an innovative student financing offer specifically to meet the needs of such needy students. UEI evaluates a student’s credit worthiness not just on the basis of the parents income and background, but also adds on a qualitative aspect of evaluating the students likelihood of success or failure in the workplace. In our view that should be the first criteria – especially for a student loan !! This leads UEI Global to view students differently, and offer financing on a very different and unique set of parameters. The financing in then extended to the student based on an assessment of future growth as a major factor in addition to the guardians paying ability.

With the UEI Global Motto of “Education to Employment” we then proceed to ensure that our students have the skills to actually succeed in the workplace. The biggest factor in this is to teach the student English and develop their personality keeping success in the job interview as the goal.

This venture of education financing is a pioneering effort from UEI Global, and one that  we believe is an enabler for many students who might otherwise not have access to quality education. Unfortunately, one UEI Global offering such a benefit – even across 16 locations – will not be enough. We hope that other major players in the industry soon start to follow our example – only that will have a significant impact on bringing more deserving students into the mainstream.

~ by ueiglobal on June 30, 2010.