CXOToday has engaged in an exclusive interview with Bibhu Prasad Das, Co-Founder, Propelld.
- What sets Propelld apart in revolutionizing education finance?
At Propelld, we are revolutionizing education finance with a distinct and multifaceted approach. We recognize that education loans require a specialized perspective, different from typical retail loans. This understanding stems from our belief that education is not just another expense but an investment with a significant Return on Investment (ROI). This insight shapes our methodology in assessing loan eligibility, where we focus on the future repayment potential, rather than solely on the current financial situation of individuals or families.
In India, where the penetration of education loans is limited and mainly focused on top-tier institutions, we have identified a significant market gap. We are committed to expanding access to quality education across various segments, reaching students beyond those in elite engineering and MBA colleges. Our range of products is tailored to different educational stages, from schools to skill enhancement programs, ensuring that our financial products meet the diverse needs of students and educational institutions.
A key aspect of our approach at Propelld is the innovative use of financial technology. This technology is not just a tool for efficiency but a means to achieve inclusiveness in education financing. By leveraging data-driven decision-making and streamlined application processes, we make it easier for a broader range of students, including those in remote areas, to access education loans. Our digital platforms and customizable loan options ensure that the loans are not only accessible but also suit the unique needs of each student. This technology-driven approach also facilitates financial education and support, aiding students in making informed decisions about their education financing.
Ultimately, our vision at Propelld is to redefine the education loan landscape. We are committed to democratizing education through innovative financing solutions that are tailored, inclusive, and forward-looking, reflecting our deep understanding of the evolving needs of the education ecosystem.
- How does Propelld cater to non-traditional education avenues like coaching and distance learning?
We have our reach even towards the non conventional educational avenues like coaching, distance education, upskilling etc. Realizing the larger gap in these segments, where the traditional loan players shy away due to the lower ticket size, we have revolutionized the field by partnering with all major players in these segments. Also we provide a zero cost product here where the customer does not have to pay an interest rate on the loan amount which makes it a convenience product for the parents.
- Could you elaborate on Propelld’s initiatives for women’s empowerment in education financing?
Propelld, in its commitment to empowering women in education, has embraced initiatives that align closely with the evolving landscape of education financing, especially in light of the surge in online upskilling courses witnessed among women during the pandemic. Recognizing the challenges traditionally faced by women in accessing financial resources for education, Propelld leverages fintech innovations to break down these barriers. Their approach goes beyond conventional credit underwriting methods that often overlook the unique circumstances of women learners. Instead, Propelld assesses loan eligibility by considering potential career prospects and academic performance, offering a more inclusive and comprehensive evaluation of a borrower’s repayment capacity. This methodology is particularly beneficial for women, who may have had limited formal financial history or assets. By integrating these unconventional risk mitigation strategies, Propelld extends its services to a broader spectrum of women learners, enabling them to access funds for upskilling, distance learning, or pursuing advanced degrees. Propelld’s initiatives thus play a pivotal role in empowering women to take charge of their educational and career paths, bridging the skills gap, and ensuring they remain competitive in the rapidly evolving job market.
- Can you share a transformative case study highlighting Propelld’s influence on students’ lives?
Kavya KR’s journey to becoming an orthopedic surgeon is a testament to the transformative impact of Propelld’s approach to education financing. Hailing from a humble background, with her parents engaged in buffalo cattle business, Kavya’s dream of pursuing an MS in Orthopedics at the Great Eastern Medical School and Hospital seemed distant. Her family’s financial dealings, primarily in cash with no formal banking transactions, posed a significant hurdle. Traditional loan providers turned her away, unable to see past the lack of conventional financial documentation.
Determined to pursue her dreams, Kavya initially took a hand loan from a local lender at an exorbitant interest rate of 25% to fund her first year. The burden of this high-interest loan weighed heavily on her and her family. However, Kavya’s resilience led her to Propelld, a turning point in her educational journey. Propelld looked beyond the standard criteria of loan eligibility. They delved into the nuances of her family’s income, analyzing the manual ledger maintained for their business. This thorough and empathetic approach allowed Propelld to understand the family’s actual financial situation, leading to the approval of a loan for Kavya’s remaining course fees.
The relief and joy were palpable when Kavya received the loan. Not only could she continue her studies without the stress of financial constraints, but she was also able to obtain a refund from her institute for her first year’s fee, paid through the high-interest loan. She promptly closed that burdensome loan, a significant relief for her family.
Propelld’s intervention was more than just financial support; it was a gesture of faith in Kavya’s potential and hard work. Kavya’s story is a powerful example of how inclusive and empathetic financing can change lives, allowing aspiring students like her to pursue their dreams and transform their futures, unhindered by the limitations of their financial past.
- In what ways does Propelld navigate the digital risk landscape within the lending sector?
Propelld’s approach to navigating the digital risk landscape in the lending sector is multifaceted and innovative, ensuring a balance between accessibility and risk management. A key aspect of this strategy involves the thorough appraisal of educational institutes and courses. By evaluating factors such as history, leadership, faculty, and student demographics, Propelld gains insights into the potential success and reliability of the courses offered. This evaluation is crucial as it influences customer repayment behavior, linking educational quality to the likelihood of loan repayment.
Customer profiling is another essential element in Propelld’s approach. This process includes analyzing the borrower’s credit history, current and projected income, average education expenses, and academic discipline. This comprehensive profiling enables more informed lending decisions, ensuring loans are granted to individuals with high potential for successful repayment and academic achievement.
Monitoring of educational institutes forms a critical component of Propelld’s risk management. Through randomized courses and customer inquiries, Propelld identifies potential failure points within institutions, enabling timely interventions and adjustments to lending strategies.
Finally, Propelld employs a customized collection approach, combining telecalling, field teams, and agency partnerships. This strategy focuses on fostering positive repayment behavior and addressing customer concerns, often resolving issues through institute intervention. This customer-centric approach to collections enhances repayment rates while maintaining positive relationships with borrowers.
- How does Propelld’s unique underwriting system differ from conventional credit score-based approaches?
Propelld’s unique underwriting system stands out from conventional credit score-based approaches by focusing on outcome-based underwriting, a method that significantly differs from traditional models. This innovative approach centers on underwriting the future potential of students, rather than just evaluating their current financial standing or credit history.
In conventional credit scoring systems, the emphasis is primarily on an individual’s past financial behavior and existing creditworthiness. This often limits access to finance for students who may not have an extensive credit history or sufficient current income but have promising future prospects. Propelld’s system, however, shifts the focus to the future potential of students. By assessing their academic performance, career prospects, and the potential earnings they can achieve post-graduation, Propelld is able to gauge their future repayment capability more accurately. This method acknowledges the transformative power of education and the long-term financial benefits it can bring.
Additionally, Propelld incorporates institute service quality into its underwriting process. This involves evaluating the educational institutions themselves, considering factors like the quality of education, placement records, and overall reputation. By doing so, Propelld can estimate the value that the education will add to the student’s life and, consequently, their ability to repay the loan. This holistic approach ensures that loans are provided not just based on past financial records, but also on a thorough understanding of the educational investment’s impact.
- How does Propelld ensure seamless and digitally driven lending experiences for students across different cities?
At Propelld, we ensure a seamless and digitally-driven lending experience for students across different cities through our innovative and adaptive platform. The primary objective of our tech project was to revolutionize the student loan application process by making it swift, efficient, and user-friendly, especially for a demographic that may not be tech-savvy. Recognizing the diverse user base across India, we aimed to provide a seamless onboarding experience irrespective of their familiarity with digital KYC processes. Our solution not only simplifies the application process but also integrates it directly with educational institutions, allowing students to apply for loans with a single click. By leveraging AI/ML, we sought to automate the verification process, ensuring accuracy and speed. Our vision was to create a platform where a student’s academic achievements and future earning potential are considered alongside traditional credit scores, offering a holistic view of the applicant’s profile.
- Could you discuss Propelld’s vision for driving up India’s gross enrolment ratio (GER) and its role in democratizing access to education?
Propelld’s vision in driving up India’s Gross Enrollment Ratio (GER) is deeply rooted in our belief in the transformative power of education. We see education as a fundamental right, a beacon of hope and opportunity, capable of shaping not just individual destinies but the future of our nation. Our mission is to democratize access to education, to ensure that every aspiring student, regardless of their financial background, has the opportunity to learn, grow, and succeed.
At the heart of this mission is a profound understanding of the challenges that countless Indian students face in accessing higher education. Financial constraints should never be a barrier to learning and personal development. We recognize that by increasing the GER, we’re not just talking about numbers; we’re talking about dreams being realized, potential being unlocked, and futures being transformed. Every additional student who steps into a classroom because of accessible financing represents a story of what could be – a future doctor, engineer, artist, or entrepreneur whose ideas and talents can contribute to our society.
Our approach is not just transactional; it’s deeply emotional and empathetic. We see the faces behind the applications, the aspirations behind the numbers. We’re moved by the stories of students who, without financial support, might have had to put their dreams on hold. By providing accessible and inclusive financing solutions, we’re opening doors that were once closed, lighting paths that were once dark.
In democratizing access to education, we’re contributing to a brighter, more inclusive future for India. We believe that education is the cornerstone of societal progress, and by supporting the educational journeys of more students, we’re not just changing individual lives; we’re transforming our nation, one student at a time. This is more than a business objective; it’s a commitment to the heart and soul of India – its youth.
