Student loan fintech firm Kuhoo Finance secures RBI approval for NBFC license, to offer loans up to Rs 2 crore

Kuhoo Finance, a fintech platform specializing in student loans, has received approval from the Reserve Bank of India (RBI) to operate as a Non-Banking Financial Company (NBFC).

The license allows the firm to offer education loans of up to Rs 2 crore for a range of courses, including management, engineering and medical programs, as well as executive education and upskilling initiatives.

Expanded lending for a growing market

With the new license, Kuhoo Finance aims to address the needs of Indian students who often struggle to secure timely funding for higher education.

The firm aims to ease the financial burden on middle-class families by offering specialized loans that look beyond parental backgrounds and focus on a student’s academic record, chosen course and institution quality.

Leadership comments

Founder and CEO Prashant A. Bhonsle said securing the NBFC license is a “game-changer” that will help students become self-reliant.

"We believe that the right student loan, given at the right time, can transform not just an individual's life but entire generations to come. Our NBFC status will allow us to play a pivotal role in India's educational landscape, supporting the dreams and aspirations of countless students who might otherwise be unable to pursue higher education due to financial constraints. This aligns perfectly with our goal of creating an Aatmanirbhar student community that will drive India's future growth," said Bhonsle added.

Bhonsle has over three decades of experience in banking and lending, including leadership roles at ICICI Bank, InCred and HDFC Credila.

He launched Kuhoo Finance in June 2021 after noticing a gap in the Indian education finance market, especially for students pursuing higher education domestically.

Advanced technology and data science

Kuhoo Finance uses an AI-driven technology stack and data science tools to assess students’ employability and future earning potential. This system enables quick checks on loan eligibility and speeds up digital loan disbursements.

Before receiving the NBFC license, Kuhoo primarily acted as a loan facilitator, partnering with banks and other NBFCs to originate, underwrite and process education loans.

Over the past two and a half years, it has processed more than 100,000 student applications and facilitated loans worth over Rs 300 crore for 15,000 borrowers.

Strengthening partnerships and raising capital

The firm plans to work more closely with educational institutions, banks and other financial entities, aiming to offer faster and more accessible lending solutions. It also intends to expand its product portfolio to serve students pursuing executive education and specialized upskilling programs.

As part of its growth strategy, Kuhoo is preparing to raise fresh capital. In March 2022, Kuhoo raised $20 million from WestBridge Capital in its first institutional funding round.