Education finance startup Kuhoo Finance gets NBFC licence
With its new NBFC status, Kuhoo Finance plans to expand into executive education, raise fresh capital, and offer loans up to Rs 2 crore across disciplines.
Kuhoo Finance, a fintech platform specialising in student loans, has received regulatory approval from the Reserve Bank of India (RBI) to operate as a Non-Banking Financial Company (NBFC).
The licence is set to significantly expand Kuhoo's lending capacity, enabling the firm to offer education loans of up to Rs 2 crore across various academic disciplines.
"Securing the NBFC licence is a game-changer for Kuhoo and the students we serve," said Prashant A Bhonsle, Co-founder, Kuhoo Finance.
"We are now better positioned than ever to fulfill our mission of making quality education accessible to all, regardless of financial constraints. The right student loan, given at the right time, can transform not just an individual's life but entire generations," he added.
With the new regulatory status, Kuhoo Finance aims to expand its product portfolio to cater to executive education and upskilling programmes. The company also plans to strengthen its partnerships with educational institutions and financial entities to improve accessibility for students across India.
To support its expansion plans, Kuhoo is preparing to raise fresh capital. "With this NBFC licence, our investor, WestBridge Capital, remains highly committed to our growth. We are also in discussions with banks and financial institutions to raise debt for further lending," Bhonsle added. WestBridge had invested $20 million in 2022 into the startup.
Before securing the NBFC licence, Kuhoo was primarily acting as a loan facilitator, partnering with banks and NBFCs to originate, underwrite, and process education loans. Over the past two and a half years, the company has processed over 100,000 student applications and facilitated loans worth more than Rs 300 crore for 15,000 borrowers.
During this period, Kuhoo focused on developing its proprietary technology stack, leveraging AI and data science to assess students’ employability and future earning potential. "We built our tech infrastructure to streamline the student loan process, enabling quick eligibility checks and digital loan disbursals," Bhonsle explained.
The loan eligibility criteria takes into account a student's academic track record, chosen course, and the quality of the institution to assess employability and future earning potential, ensuring more inclusive and need-based financing.
The company is now looking to integrate its lending solutions with educational institutions to reduce pre-admission dropout rates due to financial constraints.
"Many students drop out after admission because loan approvals take weeks, but fees are due immediately. Without timely funding, they have no choice but to defer or quit," Bhonsle said.
The company was founded by Bhonsle in June 2021 in Mumbai after recognising a critical gap in education financing for Indian students studying domestically. While loans for students going abroad had improved over the years, financing options for those pursuing higher education in India remained limited, with most private lenders favoring parental financial background over student potential.
Bhonsle brings extensive experience in the financial services sector, having spent over 30 years in banking and lending, including leadership roles at ICICI Bank, InCred, and HDFC Credila.