Move over, BNPL. Here’s EduFi, a Singapore-based startup that helps students in Pakistan secure school loans. They just raised a $6.1M pre-seed!

Their study now, pay later (SNPL) system is an alternative to the lengthy process of taking out high-interest personal loans from traditional banks.

• Launched two years ago, they are partnered with 15 Pakistani universities, which allows them to offer their SNPL model to 200K students.

‍Investor check. Zayn VC led the round, while Palm Drive Capital, Deem Ventures, Q Business, and angel investors joined in!

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🧑‍🏫 The ABCs of EduFi

Quality learning can cost a pretty penny. That’s why 42% of schooling in Pakistan is carried out in private schools.

• The catch? Not everyone can afford that. For the average family, their next best option is to get traditional bank loans that come with high-interest rates.
• These loans also often take three to four weeks to be disbursed.

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💰 How it works

EduFi’s flexible loan terms and straightforward process are an easier way for students (and their parents) to fund their education.

Once students apply, EduFi asks for proof of income. (Just to prove the student or their family can support the loan).

• Loans are directly sent to the school. Oh, and with their credit scoring model, they claim to allow loan disbursal in as quick as 48 hours.

Why simple is important. Getting access to low-interest loans with fast disbursement is an advantage in Pakistan, where a massive 100M individuals are underbanked.  

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🛞 Next steps

EduFi has received license approval from the Securities and Exchange Commission Pakistan. (They expect to receive the license this November).

• For now, they’re validating their product and collecting feedback on their service to find ways to improve it.