InCred targets unaided schools for extension of credit

While most NBFCs eye the retail and SMB segment for credit expansion, InCred foresees huge opportunity in lending to unaided schools.

Saurabh Jhalaria, Chief Executive, SMB Business, InCred told BusinessLine that the company is looking to extend financial assistance to unaided schools as this segment has remained relatively untapped by banks.

There are around 1.5 million schools across the country. A majority of them are government-run institutes, with just about 22 per cent in the private sector.

“About one per cent of the schools in the private sector are unaided institutions and this is our target segment. These schools need credit for strengthening their infrastructure, for expansion and overall development,” Jhalaria said.

InCred extends assistance to both State-board and CBSE schools and those that have been in operation with a good track record of rising student intake and in close proximity to residential colonies in suburban locations.

The company has in the last 6-7 months extended credit to 35-odd schools totalling over ₹100 crore. InCred is hoping to add another ₹300 crore before the close of this fiscal, he said.

The company has expanded its presence with at least 3 to 4 offices in Tamil Nadu, Maharashtra, Andhra Pradesh, Telangana, Karnataka Gujarat and Rajasthan. Jhalaria conceded that InCred is yet to set its footprint in Uttar Pradesh.

“Our plan is to expand our presence across the country. We will do it in a phased manner,” he added.

Besides unaided schools, InCred is also eyeing the business potential in extending assistance to medical skill development schools such as nursing and B Pharm colleges.

To a query on capital, he said the company raised ₹575 crore equity a year back

“We are expecting to get our company rated by the end of this month. Once that is through, we will be able to tap the market for debt funds.”

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