Goldman Sachs and MPOWER financing established a USD 150 million financing facility to provide globally secure education loans. This collaboration is part of Goldman Sach’s education products. Other collaboration includes Goldman’s partnership with Prodigy Finance to provide international student loans. Under this partnership, Prodigy Finance raised over USD 2.1 billion in seven rounds of investment.
Goldman Sachs and MPOWER financing aim to raise USD 500 million to build the education loan portfolio. One of the leading investors in this portfolio is ETS Strategic Capital. ETS Strategic Capital is the investment and corporate development wing of ETS, a research-driven enterprise. ETS deals in educational assessment and research.
This new facility comes against the increasing demand for secure student loans from international students. As students from developing countries like India, Indonesia, and Nigeria demand extra financial assistance, numerous venture capitalists are investing in fintech companies and lending funds to the education sector.
Basically, the increasing demand for study abroad education loans led to the Goldman Sachs-MPOWER partnership.
Credit: Fintech Finance News
Venture Capital and Overseas Education Loan
- 4 out of 5 Indian students require extra funds to pay tuition fees and other expenditures.
- The increasing number of students in English-speaking countries pushes venture capitalists to invest in the education sector.
- GradRight states that USD 1 billion education loan is offered to Indian study-abroad students each year. ICICI Bank and IDFC First Bank back this private financial organisation in India. This entity offers hefty loans to study-abroad Indian students.
- Prodigy Finance states that in 2022 98% of student loan applications came from Indian students.
- Fly Finance, the financial wing of Leverage Edu works in collaboration with Canara Bank, State Bank of India, Allahabad Bank, and InCred to provide education loans to Indian students.
- In 2020, ELAN Loans received investment from KC Overseas.
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