Struggling to pay your child’s school fees? You may try the fee financing option

Providing the best education to their children is the utmost priority for every parent and for this they want to get the children in the best school in the vicinity.

For a long time, private schools have been considered better providers of quality education compared to government schools. So, most parents want to get their children admitted to private schools despite high fees.

The fees charged by some of the reputed private schools are so high that it’s become difficult for the families having a single earning member to pay fees for more than one child.

So, any disruption in earnings – like people faced during the COVID-19 pandemic – would make it difficult for the parents to continue with the plan of best education for their children.

“Past two years were difficult for everyone. No matter how well one had planned, financial steadiness took a hit. Currently, people are cutting down on various expenses to achieve the pre-Covid levels of financial stability. However, there is one expense that cannot be compromised with, the education of the kids. The option of education loans is available for the parents, however often the processes are complicated and interest rates are high. Traditional financial system has a lengthy process and extensive paperwork. Moreover, the uncertainty of the sanction looms around. NBFCs that provide collateral free loans often charge exorbitant interest rates. To help parents out of this situation, fee financing has emerged as the most viable option,” said Rohit Gajbhiye, CEO & Founder, Financepeer.

Elaborating the model, Gajbhiye said, “In the fee financing model, the financing company pays the entire education session’s fee to the institute and the parents can repay it in easy interest free installments. Fee financing also doesn’t require any collateral or guarantors. The fee financing process is fully digital and can be completed within minutes. Once the application is complete, it takes us 24-48 business hours to disburse the money in the institution’s account which avoids any leakage and misuse of funds.”

Talking on the scope of fee financing, Gajbhiye said, “All parents can apply for fee financing, irrespective of their credit history or CIBIL score. Parents can also avail fee financing services for more than one child.”

“Also, various companies offering fee financing provide additional benefits like insurance, cashbacks and points or coins which can be redeemed for future benefits, like discounts on repayment and pursuing edtech courses,” he added.

“During the pandemic, fee financing was one of the important contributors towards the continuation of education. Millions of students have benefited from this model over the past few years. Not only students from tier 1 cities but also from tier 2 and tier 3 cities are taking advantage of this fee payment service. It has also evolved as a viable option for financing higher education,” Gajbhiye further said.