Leading edu-tech startup NeoStencil has signed an MoU RedCarpet a financial technology start-up, to offer financial aid to students preparing to appear in various competitive examinations. The collaboration will support students who are not able to pay the tuition fees immediately. The pre-financing option is expected to boost students subscribing on NeoStencil’s online platform.

NeoStencil offers a range of online courses to students preparing for examinations including IAS, IES, GATE, State Civil Services etc, with fees ranging from Rs 3,000 to Rs 1,40,000. Upon credit approval by submitting student ID and Aadhar, they will get a 30-day interest-free period to deposit the full fee. For duration beyond 30 days, RedCarpet will levy an interest rate of 2 per cent per month, of which NeoStencil will bear 1 per cent and the student will bear the remaining 1 per cent, said Kush Beejal, Co-founder, NeoStencil.

He said more than 50 per cent of these students have an annual parental income of less than Rs 3 lakh and there are many who are either still doing graduation or have left their jobs to prepare for their careers. Thus, they have limited financing options. Partnering with RedCarpet will solve this problem, he added.

In India, credit and finance companies serve less than 3 per cent of the customer base because there is no data and no widespread credit bureaus to profile and score customers, especially students and recently graduated students. RedCarpet accesses data to service customers who never had any access to credit before, said Abhay Tamaria, Co-Founder, RedCarpet.

Both NeoStencil and RedCarpet had been founded in 2014 and 2015, respectively, by alumni from IITs, IIMs and AIIMS to help students compete in various examinations for a better job and career.

comment COMMENT NOW