Ahmedabad : Auxilo Finserve has expanded its Domestic Education Loan business, IndiaEd, to provide direct fee disbursement to registered schools and colleges across India. The programme covers K–12, undergraduate and postgraduate courses, including engineering, medical and management disciplines. The company stated that all loan applications will be processed digitally, with approved loans disbursed within 48 hours directly into the institution’s account.
According to industry research, education costs in India are rising at an estimated 10–12 per cent annually, significantly outpacing consumer inflation. The increase in education expenses is creating growing financial pressure on families, while educational institutions continue to rely heavily on timely fee collections to sustain operations, payroll and infrastructure development.
Anand Subramaniam, Chief Business Officer – IndiaEd at Auxilo Finserve, said, “Schools and colleges are dependent on fee income as their primary revenue stream, and delayed fee collections affect payroll cycles, defer infrastructure investment and constrain academic planning.”
Key Highlights
- Household spending on education increased from ₹1.8 lakh crore in FY12 to ₹8.43 lakh crore in FY24, marking a 4.6-fold rise over the last 12 years.
- One in eight enrolled students drops out before completing their course, with more than 62 per cent of dropouts occurring at the school level.
- The NSO’s 75th Round survey reported that 24.3 per cent of male dropouts and 17.7 per cent of female dropouts cited financial difficulty as a reason for discontinuing education.
- The Gross Enrolment Ratio currently stands at 77.4 per cent at the secondary level and 56.2 per cent at the higher secondary level.
The IndiaEd model enables families to convert lump-sum education fees into structured monthly repayments based on preferred repayment tenures. Registered educational institutions, meanwhile, receive fees directly into their accounts, ensuring improved cash flow visibility and operational continuity.
“Online applications, 48-hour disbursement, and payment straight to the institution remove friction on both sides. Schools and colleges receive fee certainty, and families get a structured and dignified way to invest in their children’s education. This is formal finance addressing a documented and largely underserved gap,” added Subramaniam.
The programme is available to educational institutions across metro, Tier-1 and Tier-2 cities. Institutions interested in offering IndiaEd to students can register through Auxilo Finserve.