Worried about your child’s school fees? Here are some financing options

By: |
May 11, 2021 4:29 PM

Most of these platforms offer parents the option to repay the amount on a low or zero-cost EMI basis. This usually helps in easing out the burden of the parents.

financial planning, intelligent tips on financial planning, Deductions for children's tuition fees, child planning, financial planning, intelligent tips on financial planning, Deductions for children's tuition fees, EPF contributions with VPF, rent, education loan, education abroad, education inflation, expenses of studying abroad, Currency Depreciation, Investment Discipline, long-term investment, higher education, ETFNote that, tenure of education loan payment is generally 60 months but in the case of fee financing, the tenure is 6-12 EMI.

With schools and colleges re-opening, and closing, parents have been caught between the pandemic and payment deadlines. With new sessions starting, parents with school-going children are facing a lot of problems.

Industry experts say, most parents are seen to be turning to EMI (equated monthly instalment) options, to clear school fee dues this year, since last year. Having said so there are institution fee funding platforms such as Financepeer, GrayQuest, etc. that are financing the K-12 sector.

Rohit Gajbhiye, Founder and CEO of, Financepeer says, “Most of these platforms pays the entire year’s school fee to the schools on behalf of parents who are not able to afford it, who can later repay the amount at a low cost.”

One of the best features about most of these platforms is that parents have the option to repay the amount on a low or zero-cost EMI basis. Experts say, this usually helps in easing out the burden of the parents while helps the schools in getting the entire year’s fee upfront, thus enabling continuous education to the child.

How does it work?

Most of these institution fee funding platforms partner with institutes, for instance, Fiancepeer has partnered with more than 6,000 educational institutions who spread awareness about the fee financing model so that parents can avail the facility and are not forced to withdraw their ward’s name due to financial crisis. Additionally, parents, whose children are not in the schools can avail themselves of the service at a nominal interest rate.

How do these fee financing companies benefit parents?

Most of these companies pay the entire year’s fee to the schools on behalf of parents while parents have the option of repaying it on a zero-cost EMI basis. Having said so, Gajbhiye says, “the finance is provided without any processing fee or middlemen charges. Parents will have to repay this in 6 to 9 instalments.”

Hence, experts say with the help of these platforms, the burden of the parent to pay the school fees eases and also ensures that the school does not have a shortage of capital for its operations. Parents also get insurance protection for their children’s lifetime education fees in case of any unprecedented incidents.

How is it different from an education loan or a personal loan?

Fee financing is slightly different from education loans. Gajbhiye says, “In education loans, the repayment starts after the completion of the studies but in fee financing, the repayment happens within the academic year. Education loan is generally taken for higher studies but fee financing can be availed even for K-12.”

Note that, tenure of education loan payment is generally 60 months but in the case of fee financing, the tenure is 6-12 EMI.

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