Education Finance Startup Kuhoo Finance Gets RBI Approval For NBFC Licence

Kuhoo Finance, a fintech platform specializing in student loans, has received approval from the Reserve Bank of India (RBI) to operate as a Non-Banking Financial Company (NBFC).

With this approval, Kuhoo Finance can now provide loans of up to Rs 2 crore for various courses, including management, engineering, medical, executive education and upskilling programs.

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"Securing the NBFC licence is a game-changer for Kuhoo and the students we serve. We are now better positioned than ever to fulfill our mission of making quality education accessible to all, regardless of financial constraints. The right student loan, given at the right time, can transform not just an individual's life but entire generations," said Prashant A Bhonsle, Co-founder of Kuhoo Finance. 

"With this NBFC licence, our investor, WestBridge Capital, remains highly committed to our growth. We are also in discussions with banks and financial institutions to raise debt for further lending," Bhonsle added.

With its new NBFC status, Kuhoo Finance plans to expand its loan offerings to include executive education and upskilling programs. It also aims to strengthen partnerships with educational institutions and financial entities to make student loans more accessible across India.

WestBridge invested $20 million in Kuhoo in 2022. Before getting the NBFC license, Kuhoo mainly acted as a loan facilitator, working with banks and NBFCs to process education loans. In the last two and a half years, it has handled over 100,000 student applications and helped 15,000 borrowers secure loans worth more than Rs 300 crore.

Kuhoo Finance assesses loan eligibility based on a student’s academic record, chosen course, and the institution’s reputation to gauge employability and future earnings. This helps provide more inclusive, need-based financing.

The company now plans to partner with educational institutions to offer integrated lending solutions, helping reduce pre-admission dropouts due to financial issues.

About Kuhoo Finance

Founded in 2021 by Prashant A Bhonsle, the Mumbai-based Kuhoo Finance uses data science and AI-based credit models to evaluate students' employability and future income, ensuring responsible lending.

It also plans to launch new loan options for various academic fields and strengthen ties with educational institutions and financial partners.

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