Student loan fintech startup Kuhoo Finance secures RBI approval for NBFC licence

WestBridge Capital-backed student loan fintech startup Kuhoo Finance has received approval from the Reserve Bank of India (RBI) for a non-banking financial company (NBFC) licence, enabling it to offer loans from its own books.

With this approval, Kuhoo Finance can now offer loans of up to Rs 2 crore for a range of academic programmes, including management, engineering, medical, executive education, and upskilling courses, Prashant Bhonsle, founder of Kuhoo Finance, told ET.

“We will now be able to leverage our experience in lending to Indian students, whether they are going abroad or staying in India. We will be able to create products better suited to students for a particular college or course… The licence will give us much more headroom to develop innovative product solutions that will benefit not only students but also institutions,” said Bhonsle.

Kuhoo Finance raised $20 million in March 2022 from WestBridge Capital in its first institutional funding round.

Founded in 2021, the company uses data science and artificial intelligence (AI)-driven credit models to assess students’ employability and future income potential, ensuring responsible lending. It also plans to introduce new loan products catering to diverse academic streams while strengthening partnerships with educational institutions and financial entities.

Kuhoo competes with education loan providers like Propelld and Peak XV-backed Eduvanz, which focus on financing individuals for reskilling and upskilling.

Meanwhile, on January 9, education-focused fintech GrayQuest raised around $9.3 million in a Series B funding round led by IIFL Fintech Fund, Claypond Capital, the family office of Manipal Group chairman Ranjan Pai, and existing investor Pravega Ventures.