Mumbai, Dec 08: India’s education lending market is entering a new phase of transformation as more families seek affordable credit beyond traditional higher-education loans, with K-12, coaching and vocational learning emerging as the fastest-growing segments. Flyhi Financial Services Limited (Flyhi Finance) today announced a strategic lending alliance with Avanse Financial Services, marking a significant shift in India’s fast-evolving education finance landscape as both players build the next generation of digital, collateral-free credit rails focused on K-12 and vocational education—two of the most underfinanced yet high-growth pillars of India’s learning economy.
While the Indian education financing market touched approximately ₹1.23 lakh crore as of July 2024 in outstanding loans, less than 10% of credit access is focused on K-12 and vocational education despite the K-12 market itself being valued at nearly USD 90–92 billion. The new alliance aims to bridge this gap by offering digital, collateral-free financing across segments where formal credit penetration remains low and unsecured loans are often unavailable or delayed.
The model integrates Flyhi’s institute-embedded origination platform, real-time eligibility checks, UPI e-mandates, and Account Aggregator-based risk assessment with Avanse’s credit expertise and lending infrastructure. Applications can be initiated directly at education institutes with faster underwriting and processing times, enabling approval in minutes instead of days. The collaboration removes barriers faced by learners and parents in accessing small-ticket, transparent, low-documentation loans—traditionally overlooked by banks and NBFCs.
Brajesh Pranami, Founder & CEO of Flyhi Finance, said,
“India is entering a new phase in education finance, and this partnership places Flyhi at the centre of that shift. Avanse brings strong credit and category expertise, while we bring deep institute integration and digital origination. Together, we are building a scalable model for K-12 and vocational lending—segments that are set to drive the next decade of growth. With rising demand across our partner network, we are preparing for a broader expansion cycle and engaging selectively with strategic and financial partners who believe in our vision of democratising access to education finance in India.”
As India looks beyond traditional education pathways toward skills, employability and continuous learning, the credit market is resetting. Flyhi and Avanse aim to catalyse this shift by building a high-trust, low-friction, technology-led financing ecosystem that serves millions of learners and brings formal credit deeper into India’s education system. The collaboration also positions both companies to play a larger role in the evolution of Education Lending 2.0—where instant verification, transparent pricing and digital underwriting will replace lengthy paperwork and traditional loan approval cycles.
