Indian School Finance Company (ISFC)
The Indian School Finance Company (ISFC), is a Non-Banking Finance Company engaged in the business of lending to educational institutions and entrepreneurs managing such institutions. Loans are extended for the purpose of capacity building and quality improvement. The twin goals of the company are to assist with the creation of capacity building through social infrastructure, thereby enabling students to enjoy access to quality education, and secondly to promote financial inclusion by focusing on schools serving urban low income segments.
The loans are provided to schools, enabling them to enhance their delivery capability by improving infrastructure facilities. Projects may include: construction of additional floors or wings within existing school premises; setting up computer labs, facilities, and science laboratories; adding basic amenities; providing finance for implementation of new teaching methodologies like digital classrooms, and experiential learning; and other activities which lead to a qualitative and quantitative improvement in educational delivery.
To date, the company has extended loans to approximately 500 schools and sees significant untapped potential in the market. Currently ISFC operates through 9 locations across the states of Andhra Pradesh and Karnataka alone and plans to broaden its footprint across India. The company has recently commenced operations in Northern States and the state of Maharashtra.
Areas of engagement in non-state educationEducational TechnologyLow-Cost Private SchoolsSecondary EducationFinancingSchool supportEarly childhoodPre-primaryPrimaryLower secondaryUpper secondaryPost-secondary non-tertiaryShort-cycle tertiaryProviding organizational support (e.g., capacity building, M&E support)Not-for-profitCorporate programEarly Stage ProgramsPilot Programs (e.g. testing new models/ideas)Programs ready to replicate to new settingsPrograms ready to scale upPrograms that have already scaled
Funding PrioritiesDebtEquityUnder $100,000$100,000-$500,000Most are for 2-3 years of guaranteed support$1 million and up
Within India, ICSF has made loans in Andhra Pradesh, Haryana, Karnataka, Maharashtra, NCR Region, Rajasthan, Tamil Nadu, Madhya Pradesh.
Secured: Collateral Based Loans
- Used for larger projects (eg. Purchase of property, construction of building, renovation, school acquisition, etc.)
- Lower interest rate dependent on collateral
- Loan amounts of up to 10 million Indian Rupees (1 Crore) based upon project requirements
- Loan tenor of up to 60 months
Unsecured: Non-Collateral Loan
- Used for smaller projects (eg. setting up labs, replacing furniture, addition of smart classrooms, procurring play equipment, etc.)
- Loan amount of up to 400,000 Indian Rupees (4 Lakhs)
- Loan tenor of up to 36 months