COVID-19 crisis has severely hit earnings of parents, many of them are now finding difficult to pay school fees of their children on time. Many big schools are now coming forward with schemes to help ease parents’ financial constraints. The latest in this is VIBGYOR Group of Schools, which has developed an interest-free loan scheme for COVID-impacted families that are finding it difficult to cope with their children’s education expense. The loans are provided for students studying in VIBGYOR schools in Mumbai, Pune, Nashik and Vadodara. Under the scheme, each family can avail of a maximum of 2 loans for up to Rs 5 lakh (Rs 2.5 lakh per student) for 27 months, including a three- month moratorium. VIBGYOR will pay 100 per cent of the interest on the loan for eligible families.
In an email interaction with FE Online Peshwa Acharya, Chief Marketing Officer, VIBGYOR Group of Schools, talked about the scheme and how it works in detail. Excerpts:
Please share details of the interest-free loan programme
Keeping in mind some parents commercial requirements especially during these times, VIBGYOR is facilitating the parents with Easy-EMI Education Loan Scheme, a financial programme to help VIBGYOR parents in Mumbai, Pune, Nashik and Vadodara who have been financially impacted by the COVID-19 pandemic.
The program facilitates education loans of up to Rs 2.5 lakhs per student, and up to a maximum of 2 students per household, to meet education-related expenses such as school fees, and purchase of desktop/laptop/tablet, books, equipment, uniforms and instruments.
The interest rate is 8.25 per cent, which is the best in the education loan segment. There are no collaterals required for the loan, no foreclosure or hidden charges involved. The max tenure of the loan can be 27 months, including a 3-month moratorium.
As an additional feature, VIBGYOR is providing 100 per cent interest subvention on loan to parents who have current outstanding school fees due for payment. Internally, communication will be shared with parents in the coming week about this program. Which Essentially leans this is at ZERO INTEREST COST to our parents.
Who will pay the interest, if not parents?
VIBGYOR is providing 100 per cent interest subvention on loan to parents who have current outstanding school fees due for payment.
What are the terms and conditions? Any hidden condition for the loan programme?
There are no hidden charges, and no foreclosure charges involved. The loan also does not require collateral. There will be a processing fee of Rs 500 (plus GST), and for loan amounts exceeding INR 1 lakh, the bank will charge a refundable membership deposit of Rs 1,010 per member, as per co-operative bank regulations.
How will you benefit by offering this loan programme to parents?
VIBGYOR does not have any interest in this matter, monetary or otherwise. We are a mere facilitator to help parents in their quest to provide a better future to their children. The loan facility is provided by Abhyudaya Co-operative Bank Ltd. We recommend that parents read all Easy-EMI Education Loan Scheme-related documents carefully before availing the loan. The benefit to Vibgyor would be that we will have satisfied parents, who would not only have peace of mind for the “high-quality education “for their wards, but also have peace of mind on their
commercial / financial issues.
Other ways in which VIBGYOR is helping parents tide over these difficult times
We are mindful of the situation some parents have been going through, and have been supporting them in many ways. Accordingly, we have provided them with options for monthly installments as well as online payments, and have revised the last date several times to allow them greater flexibility. We also adjusted several components of the fees already paid earlier, against future dues. We are ensuring that all transportation charges for this period etc. are also being adjusted.
Additionally, we launched the VIBGYOR EduBridge Scholarship Programme ( which essentially is a fee waiver program ), to extend financial assistance to those parents ( both salaried and non-salaried/business-owners) who had been financially impacted by the pandemic. Fee waivers have already been extended for more than 3000 plus students, with a maximum of up to 3 quarters waiver.