Taking loans to participate in college is an investment in your future. But unlike the United States, students in Pakistan do not have easy access to college loans. Instead, most families should stomach high interest rates for personal loans, which may require collateral like land or houses. As a result, the college is inaccessible for many students. This is one of the reasons why only 13 percent of Pakistani students go to college.
Now Edoufi, Elena Madame ‘is offered by low-onion students for widespread health, established by’ 16. Edufi, which is low for “education finance”, uses an artificial intelligence-based credit scoring system to qualify and pay colleges directly to the borrowers. The borrowers then make monthly payments to Eduf with a 1.4 percent service fee – which is available to most students today.
“Fees for college are still extremely ineffective for average middle class person,” Nadeem explains. “Now with our study, pay later ‘system, we are breaking that big upfront cost into installments, which makes it more cheap for existing college students and a new group of those who never thought that higher education is possible.”
Edufi was included in 2021, and after receiving regulatory approval, the company began to lend to the people of Pakistan last year. In the first six months, Eduf distributed more than half a million dollars in the loan. Since then, the company’s inclusive approach for qualified applicants has been validated: today, not less than 1 out of 10,000 of those loans is being repaid.
As awareness about Edufi increases, Madem believes that the company can contribute more widely to the modernization and development of Pakistan.
“We are accepting so many people who will not be able to receive bank loans,” Nadam says. “It gets more people to go to college. The impact of a developing country like Pakistan to direct the educational sector cheap and fast credits is huge.”
Better credit
Nadeem attended the British International High School, no one ever entered the Ivian League School. This made him a big thing in MIT.
“It was my first choice till now,” says Nadeem.
When she reached the campus, Nadeem took classes at MIT, which taught her about auction, risk and credit.
“I am now doing with Edufi at work, I am implementing whatever I learned in my classes in the real world,” Nadem says.
Needam worked in a credit division at Goldman Sachs in London after graduation, but obstacles still harassed him in reaching higher education in his country.
In Pakistan, some targeted programs provide financial assistance to exceptionally high -grade students who cannot afford college, but most families will have to find other methods for college finance.
“Most students and their families have to receive personal loans from standard banks, but this requires them to open a bank account, which may take two months,” Nadam explains. “Payment of fees in Pakistan’s education sector should be made immediately after sending requests, and as long as banks accept you or reject, payment may already be late.”
Private loans in Pakistan come up with much higher interest rates than students loans in the US. Many loans also require borrowers to keep property as collateral. Those challenges prevent many promising students from going to college.
Edufi is using technology to improve the debt qualification process. In Pakistan, parents are primary borrower. Edufi has developed an algorithm credit scoring system that considers the borrower’s financial history, then pays directly to the college on their behalf. Edufi works directly with colleges to consider grade and payment history of students at school.
Borrowers pay loans in monthly installments with 1.4 percent service fee. No collateral is required.
“We are the first movers in giving students loans and currently holds the largest student loan portfolio in the country,” says Nadeem. “We are offering extreme subsidy rates to many people. Our rates are cheaper than bank options. We still make a profit, but we are impact-focused, so we earn profit for a large number of people instead of increasing per capita margin.”
Nadem says Edufi’s approach makes more people worthy for loans than banks and does it five times faster. This makes the college more accessible for students across Pakistan.
“Banks charge high interest rates to people with the best credit score,” Nadam says. “By not taking collateral, we actually open credit spaces for new people, which are not able to receive bank loans. Easy credit gives a medium class person the ability to change the lives of their families.”
Help people by helping people
Edufi received his non-banking financial license in February 2024. The company received early traction through the word mouth last year and was soon opened to borrowers across the country. Since then, Nadeem says that many people have covered a long distance at the headquarters of Eduf to confirm a reliable operation. Nadeem regularly receives messages from students across Pakistan, who thanks Edufi for helping to go to college.
After proving his model this year, Eduf has planned to expand into Saudi Arabia. Ultimately, it plans to offer their loans to students throughout the Middle East, and Nadeem believes that the global student debt system can be improved using Edufi’s approach.
“Eduf is built after Sophie in San Francisco,” Needem said about the large finance company, which was started by offering students loans and expanded to hostage, credit cards and other banking services. “I am trying to build Sophie of Pakistan and Middle East. But this is actually a combination of Sophie and Grameen Bank [in Bangladesh]Which expands the credit for taking out low -income people out of poverty. ,
By helping people to expand their education and reach their full potential, Nadeem believes that Eduf will one day to accelerate the development of the entire countries.
“Education is a main pillar of which a country stands,” says Nadeem. “You cannot progress as a country without making education as accessible and inexpensive as possible.
