Why Develop Student Loans in India?

350 Million Children in India

85% primary school enrollment
100 million children out of school*

Why are so many children dropping out of school after 5th grade?

•School Fees / Uniforms / Books (direct costs)
•Child can work (opportunity costs)
•Distance to school (transportation cost)
•End of mid-day meal scheme (food costs)
•Gender discrimination/danger for adolescent girls (cultural barriers)
•Agricultural focus of rural economy
•Higher education does not ensure better employment.

Education is one of the best self‐help strategies in the struggle to escape poverty.

Our aim is to make small loans for education accessible and affordable for families who want to invest in a student. We choose borrowers and students based on need, performance, and earnings potential. Traditional entrepreneurial microfinance can be expensive, with interest ranging from 25-75% due to the high cost of working in rural areas with high-risk (non-collateral) loans. Our interest is subsidized, so it stays affordable around 12%, providing further incentive for parents who may not value education as much as a business loan (especially for girls).

Janta works with partner microfinance institutions (MFIs) who offer education loans and scholarships tailored to local needs. We provide loans for secondary and vocational students, and are working on a grant program for primary and pre-school students. $100‐$300 can fund a year of education in the developing world and dramatically increase lifetime earnings potential. There are so many social benefits to a good education, we are working really hard to provide this service to those who do not have access. Please stay tuned to what we're doing!

*These numbers come from the Gyaana project. All photos are from schools I've visited all over India.