Role Of Education Financing In Democratising Education

Education financing solutions have empowered young aspirants to follow their academic quest despite the education inflation

Education is of paramount significance in order to empower the human capital to be future-ready and hence, it plays an instrumental role in nation-building. India’s higher literacy rates will translate into a robust economy and thriving society. India is a young nation with the largest population in the age bracket of 5-24 years, comprising 500 million people. The country’s education sector is expected to reach USD 225 billion by FY2025. A large student body aspires to study abroad and in the first three months of FY2022, ~1.33 lakh students were studying overseas.

Over the last two years, the education space has been swept by a wave of digitalisation, bringing in a sea of change. Students and teachers had to adapt to newer ways of teaching and learning and education service providers have had to invest heavily in integrating technology at the heart of their operations. In this new paradigm, education financing has ensured continuity and accessibility for learning. Education financing solutions have empowered young aspirants to follow their academic quest despite the education inflation. The education-focused financiers offer customised solutions, thanks to their in-depth knowledge of industry intricacies. 

Education finance is available for both students and educational institutions. Education loans are specifically designed for students, whereas educational institution loans aid in building the infrastructure to facilitate learning, thereby fostering the growth of the Indian education delivery system in many ways:

Equal opportunity

Education loans help deserving candidates achieve their long-cherished dream of studying at a premier institution of their choice without having to worry about funding. Moreover, student loans cover the holistic cost of education, such as tuition fees, travel expenses, accommodation expenses, learning devices, library fees and other education-related costs. So, irrespective of the destination, university and course, our young aspirants can continue their academic journey. 

Financial prudence

Many individuals begin their credit journey by opting for an education loan. Planning repayment while balancing regular expenditures instils financially prudent habits among the student community at a young age. Responsibly repaying the student loan helps build a healthy credit score, which, in turn, opens up more avenues for them to avail credit for many of their firsts in life, whether it be their first home or their first car. 


The process of responsible repayment of an education loan helps students learn the nuances of financial literacy, financial independence and self-reliance. From managing their monthly expenses to planning the next step in their careers, this helps them earn and wear the self-made badge with pride.

Preserves family savings

Access to an education loan ensures that the family does not need to dig into their savings to pay for education. These can be kept intact to meet any further emergencies or for other discretionary expenses.

Employment opportunities

The ultimate goal of every student is to build a successful and lucrative career. Quality education helps build a clear path to success for students by honing their skills and upgrading their knowledge, making them ready for their professional journey by developing them into a strong, educated and able workforce.

Infrastructure development

Financial solutions such as education institution loans further democratise the education process by financially supporting institutions to build the necessary infrastructure to equip them to increase their reach with the help of digital tools. Education-focussed financers have designed financial solutions that cover infrastructure costs and meet working and growth capital needs.

Technology for all

Digitalisation has made technology imperative to the education process and has helped institutions adopt digital tools. It is now possible to increase accessibility to education by integrating digital solutions seamlessly to widen the student base. Financing ensures accessibility of technology, giving a fillip to innovation, thereby creating a conducive learning environment.

The education sector is one of the key pillars of nation-building. It imparts the necessary skills and knowledge to empower entrepreneurs and professionals of tomorrow by addressing one of the most crucial gaps, i.e., funding. Many education finance providers are also equipped to provide strategic counsel. Hence, education financing helps strengthen the education sector by allowing institutions to grow and students to prosper.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house

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