India-based student loan provider Kuhoo has secured $20 million in seed round funding from West Bridge Capital.

The platform plans to provide online loans to students aspiring to study at universities in India and abroad.

Talking about the development, Prashant A. Bhonsle, Founder of Kuhoo said, “We are on a mission to make Indian students Atmanirbhar. In our cumulative experience of more than 30 years in the field of Indian student loans, we have observed that many talented students do not apply to good universities because they are afraid of imposing tuition fees and fees on their parents. high living expenses. We want to change that.

“At Kuhoo, we combine our vast experience with cutting-edge technology and data science to create risk and credit models. These models help us assess the potential employability of students and their future earnings for the various courses in which students enroll. With this unique ability, Kuhoo can offer different products that are better suited to the individual profiles of students from a variety of family backgrounds. The other benefit – usually underestimated – for students will be that this loan will help them to build a credit history during their studies.As we all know, in today’s world, a good credit rating ensures that students will have access to the best financial products like credit cards, other loans, etc., once they start working,” Bhonsle added.

Kuhoo has also onboarded experienced global talent in the areas of technology, data science, consumer and student loans. Apart from launching their innovative products, Kuhoo will partner with banks and other NBFCs, as well as top colleges and coaching centers around the world.

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“As a completely online student lender, we want to provide the most dignified experience for students, parents, universities and all our partners. We also plan to use our expertise to help students find universities, courses and even jobs best suited after completing their studies,” added Bhonsle.

Commenting on the financing, Deepak Ramineedi, Partner, West Bridge Capital, said: “We have been following India’s education sector closely for over a decade now. With the rising cost of education, we believe that India needs loan providers who fully understand the issues of students, parents and academic institutes. Assessing student employability and future earnings are two of the biggest challenges for existing banks and NBFCs that offer student loans. »

“We are happy to have found the right entrepreneur in Prashant. Apart from his experience in building one of the most successful student loan companies in India, we like his vision of using technology and analysis to create an online business model. Additionally, Prashant’s passion for organizational culture and creating impact aligns with West Bridge’s core values. We are excited to partner with kuhoo and wish the best to the talented team,” added Ramineedi.

Speaking in more detail about the investment cycle, Sumir Chadha, Co-Founder and Managing Director of West Bridge Capital Partners, added: “Over the past decades, only a tiny percentage of talented Indian students have had the chance to pursue their higher education dreams. at universities abroad. Although it will continue to grow, the emerging world order and India’s economic growth provide students with many career opportunities. Moreover, the Indian government’s policy of creating high-quality educational institutes and the Edtech revolution of recent years have opened up attractive prospects for young Indian students.

“West Bridge Capital is committed to financial inclusion through long-term investments in sectors such as affordable housing finance and education. We strongly believe that Kuhoo will play a vital role in making these expensive courses affordable, primarily for middle class Indian families. We are delighted to support Prashant and his talented team at kuhoo in their endeavor to build one of India’s leading student loan institutions,” added Sumir Chadha.

Admittedly, gathering everything you need to apply for a loan can be tedious, but on the other hand, personal loans are often one of the quickest loans to get because you can sometimes get the money in a matter of seconds. days. (You can see the personal loan rates you may qualify for here.) That said, you’ll be much better off if you have the necessary documentation for a personal loan and know other key things you’ll want to do before you officially apply. (Also, read this guide first to determine who a personal loan might or might not be right for.) Here’s how to make sure you’re properly armed with everything you need to make the application process as smooth as possible.

1. Gather documentation that a personal lender might require

The specifics needed to determine loan eligibility will vary from lender to lender, but most will ask:

1. The loan request (this typically asks for things like name, address, date of birth, social security, and other personal information, as well as how much you want to borrow and why);

2. Identity proof (this may include a passport or driver’s license);

3. Proof of employer and income (this may include a W2, pay stubs, bank statements, 1099 forms or tax returns); and

4. Proof of address (this may include utility bills or a lease or mortgage statement, proof of insurance on your home, voter registration card or property tax receipt).

This is only a preliminary list, so be prepared to provide further information. It could even include your educational background, says Annie Millerbernd, personal loan expert at NerdWallet, who explains that if a lender asks about it or what you studied in school, they may be trying to figure it out. earning potential. “However, your level of education is unlikely to outweigh your income or credit,” says Millerbernd.

2. Pull your credit score in advance and improve it before applying if necessary

Before applying for a personal loan, check your credit score because credit is, like most loans, a big factor in determining the rate you will get or even if you get the loan. The best personal loan terms typically go to people with credit scores in the mid-700s and above, says Ted Rossman, senior industry analyst at Bankrate. “You can potentially get a personal loan with a lower credit score, but especially when you drop below 700 on the FICO scale, your odds are going to get noticeably worse and your interest rate should be significantly higher,” says Rossman. According to Bobby Ritterbeck, president of personal loans for Best Egg, the minimum credit score you’ll likely need to qualify for a personal loan is around 610 to 640. (You can see the personal loan rates you may qualify for here.)

“Banks generally prefer good or excellent credit over a personal loan application, while a credit union may look more at your overall financial situation than your credit score alone. Online lenders tailor their loans to borrowers in different situations, so there are good and bad credit online loans,” says Millerbernd.

As with any loan, the higher your credit score, the better the terms of your personal loan. “If you have strong credit, you can get a loan with a single-digit APR. However, if you have poor credit, the APR could reach 30% or more, well beyond what you would pay with a typical credit card,” says Matt Schulz, chief credit analyst at LendingTree.

3. Understand the other factors that personal lenders are looking for and improve on them too

“Your credit score isn’t the only thing lenders will consider. The length of your credit history and your debt-to-equity ratio can also impact your ability to get a personal loan,” says Ritterbeck. To find your DTI, add up your recurring monthly debt, including credit cards, mortgage, car loan, student loan, and more, and divide by your total gross monthly income, which is the amount you earn before taxes, withholdings and expenses. Typically, lenders like to see a DTI of 43% or less. If you can pay off some debt or increase your income, that’s a good way to improve that number. (You can see the personal loan rates you may qualify for here.)

4. Know if you get a secured or unsecured personal loan

Because unsecured personal loans are exactly that – unsecured debt – you don’t have to put assets such as your home or car as collateral. Secured personal loans, however, will require valuable assets including investment accounts, real estate, and collectibles to use as collateral, should you default on the loan. If you get a secured personal loan, you’ll need to show proof of property you own, such as a paid-off vehicle, jewelry, savings accounts, investments, art, and more.

5. Understand if a personal loan is right for you and how you will repay it

Personal loans aren’t for everyone: While they can be effective tools for debt consolidation or essential projects where you need money fast, they aren’t suitable for discretionary spending. And if you decide to take out a personal loan, make sure you have a solid plan to pay it off in full and on time.

Late-stage funding for the Indian startup ecosystem is steadily declining. Evidence of a bear market controlling the private market with a decline after correcting the public market with a declining valuation is now easily seen. In other words, the first week of March saw a total of $223 million in funding spread across 32 deals, with no megadeal above $100 million. Meanwhile, funding for five of the total funded startups remained undisclosed.

The week also failed to create new unicorns. This week’s funding is 68% lower than the previous week, when the ecosystem attracted $699 million across 48 deals and introduced a unicorn. The most active investor(s) this week was Vaibhav Domkundwar’s Better Capital, which handed over three checks. Kunal Shah and Jitendra Gupta, two angel investors, each participated in two transactions.

Here’s a quick rundown of all the best fundraisers for startups:

Pocket FM raises $65 million

Pocket FM, an OTT audio platform, has secured $65 million in a Series C funding round led by Burlingame-based Goodwater Capital, South Korean tech conglomerate Naver, alongside a existing investor, Tanglin Venture Partners. The newly raised funds will be used to strengthen the startup’s leadership position, expand into other regional languages, invest in AI capabilities and build the world’s largest audio creation community, the company said in a statement. communicated. In addition to long-form content, the platform includes audio series, novels, podcasts, stories, and knowledge shows in eight languages. There are currently over 50 million users and around 3 billion monthly listening minutes on the platform.

Volopay pockets $29 million

Volopay, the business-to-business (B2B) financial technology company, has attracted $29 million in funding led by JAM Fund, Accial Capital, Winklevoss Capital Management and others ahead of its foray into the Indian market. The round also saw the participation of Amrish Rau, CEO of Pine Labs, Sweta Rau, founder of White Ventures, Rapyd Ventures, fintech veterans Jeffrey Cruttenden and Jitendra Gupta, founder and CEO of Jupiter; Antler Global and VentureSouq. The investment is a combination of equity and debt capital, according to a statement from the Singapore-based company. Volopay also focuses on the entire Asia-Pacific region, as well as markets in West Asia.

Filo bags 23 million

Filo, an instant live tutoring startup, pocketed $23 million in a Series A funding round from Seattle-based venture capital firm Anthos Capital. The round also featured participation from existing investor Better Capital as well as GSV Ventures, Sapling Capital, among several angel investors. The proceeds will primarily be used for product development as the company deepens large-scale modeling pedagogy, expands its team, enters new categories and expands its base of tutors across the country, according to the company. The startup claims to have received over 1.5 million downloads in a single year and has around 350,000 monthly active users on its platform.

Kuhoo raises $20 million

Kuhoo, a fintech platform, has announced that it has raised a whopping $20 million seed round from London-based private equity firm WestBridge Capital. This fund will be used by the company to revolutionize the fintech segment of student loans. Kuhoo, named after the melodious sound of the cuckoo bird, seeks to provide online loans to students interested in studying at universities in India and abroad. It is also the first student loan company to offer products in areas as diverse as MBA, engineering, online courses, executive education, coaching programs and even new age courses.

A captive NBFC of RupeeRedee has closed its second round of equity financing with existing stakeholders, Digital Finance International (DFI), a member of Finstar Financial Group headquartered in Russia

Are you expecting a tax refund from the IRS? You may not have to wait for the IRS to process your return and send you a direct deposit or a check in the mail.

If the tax preparation service you use offers tax refund loans, you could get an interest-free advance on your money. These loans are easy to obtain and generally do not require a credit check. However, they may not be wise given that you may have to spend money to access funds that belong to you.

What is a tax-free loan?

Tax refund loans are available to taxpayers who have filed a federal tax return and are eligible for a refund. These loan products are generally for a fixed amount, between $200 and $6,000and offered between January and the end of February.

How Do Tax Free Loans Work?

When you file your return, you can apply for a tax refund loan if offered by the tax preparation service. If approved, funds are distributed by check or loaded onto a prepaid card. The time frame for financing depends on the lender and how you choose to receive the loan proceeds.

However, you will not repay the lender or company offering the loan. Instead, it will be taken from your refund before it is sent to you.

Where can you get tax refund loans?

H&R block

H&R Block’s Refund Advance Loan is offered to customers through MetaBank. You can apply without affecting your credit score and you won’t pay any fees or interest to the lender.

Turbo tax by Intuit

The Intuit Turbo Tax Refund Advance is also a no-fee, no-interest loan product. It is offered by First Century Bank to filers who use Turbo Tax.

Jackson Hewitt

Jackson Hewitt offers two Refund Advance loan products, both underwritten by MetaBank. The prepayment advance loan is subject to an APR of 35.9%, or you can get a no-fee repayment advance loan without paying interest or fees.

Should I take out a tax-free loan?

It depends on your financial situation. You could get cash right away to deal with an unexpected financial emergency, pay off high-interest debt, make a big purchase, or use as you see fit.

Still, a tax refund loan could cost you a significant amount of money if the lender charges a fee, and you’ll essentially be paying to borrow your own money. And if your refund is delayed or denied if there are unresolved tax issues or you owe back taxes, you could end up with a lot of debt. So it may be better to wait for the IRS to process your refund.

Alternatives to the tax-free loan

If you’d rather explore other options, or you’re not getting a refund but need the money, these alternatives might be right for you:

• Online Loans: Use an online loan marketplace to find personal loan products at competitive rates. Fixed personal loans are payable in equal monthly installments over a fixed period, usually between three and five years.
• Short-term emergency loans: These loans act as payday alternatives and can give you quick cash without costing you a fortune in interest. Some lenders won’t check your credit when you apply, so you might get approved even if your credit score isn’t up to par.

These online lenders offer fast financing if you need cash now.

The Economic Crimes Wing of the Central Crime Branch Police uncovered another mobile loan app scam on Thursday where senior managers allegedly used their employees’ details to start another business. The defendants started a company by appointing some of their employees as directors and opened bank accounts in their names to launder money, a police officer said. This was done without their knowledge.

Two directors of the company and the director have been booked so far.

The scam began to unravel when a marketing manager employed by the defendant received a tip from a bank regarding an account opened in his name. Upon closer inspection, she found records of financial transactions worth thousands of dollars made from that account. She approached the CCB who conducted a detailed investigation.

Police say the defendants – Shabbir Alam and Umakanth Yadav – are directors of a private company offering online loans through apps. “When the marketing manager joined the company in July 2021, they used her documents and other information to open accounts in two private banks without her knowledge. They also started another company and registered her as a director said a senior police officer.

The accused offered app users instant loans at exorbitant interest rates and threatened, intimidated and harassed those who failed to pay. “The bank accounts opened in the employee’s name were used to receive EMI loans and interest, which amounted to hundreds of thousands of rupees,” the officer said.

Police have filed a complaint against the two directors and another member of senior management charging them under various sections of the Karnataka Money Lenders Act, Information Technology Act and the law on prohibition of charging exorbitant interest in Karnataka.

Small businesses are the backbone of Southeast Asia’s economy, but many struggle to get working capital loans because they don’t have a traditional credit history or collateral , say the founders of Finance companies. The fintech, which claims to be the region’s largest SME digital finance platform, uses alternative forms of credit scoring and has disbursed over $2 billion in financing to MSMEs since its launch in 2015. Today, the finance companies announced that they have raised $144 million in an oversubscribed Series C+ funding round led by SoftBank Vision Fund 2, with participation from new investors like VNG Corporation, Rapyd Ventures, EDBI, Indies Capital, K3 Ventures and Ascend Vietnam.

It has also received $150 million in lines of credit from institutional investors, some of which have been drawn down since last year.

TechCrunch first covered funding companies when it raised its Series A in 2016. The company’s previous round was a $45 million Series C raised between 2020 and 2021. Part of its new funding, or $16 million, will be distributed to former and existing employees through its stock option plan in the form of share buybacks.

The company was founded in 2015 by Kelvin Teo and Reynold Wijaya after they met at Harvard Business School. It is now licensed and registered in Singapore, Indonesia (where it is known as Modalku), Malaysia and Thailand. He recently started operating in Vietnam and will use part of his C+ series to enter the Philippines.

The platform provides online loans ranging from $500 to $1.5 million. Since its launch, it has disbursed over $2 billion in business finance to MSMEs through over 4.9 million loan transactions. Funding company customers range in size, from corner stores and e-commerce vendors to mid-sized companies, such as fast-growing startups and established corporations that want to access revenue-based funding faster than bank loans, which usually take about two to three months. to shell out, Teo tells TechCrunch.

A recent impact study calculated using Asian Development Bank methodology showed that MSMEs supported by finance companies contributed $3.6 billion to GDP and 350,000 jobs.

Covering a wide range of businesses, Teo claims finance companies have better customer acquisition costs and better loan-to-value ratios. It also accumulates data faster to train its data scoring models, which draw on traditional and alternative data sources. Traditional sources include bank statements and credit bureau information, where available, while alternatives may include transaction information, online reviews, and supply chain data feed.

One of the advantages of finance companies is that some of their data sources are proprietary, while they have exclusive rights to others through partnerships. This gives the startup an edge over new players, Teo says, as well as the amount of loan repayment data finance companies have collected since its launch. He added that the default rate of finance companies is between 1% and 2% even during the COVID-19 pandemic, which is why she was able to receive lines of credit from so many institutions.

Interest rates from finance companies are usually higher than banks, but less than or equal to credit cards – in fact, it offers a credit card with a debit line to replace corporate cards . It also partners with companies including e-commerce platforms like Shopee and Bukalapak, accounting app BukuWarung, fintech Alterra and agritech platform Tanihub that provide access to working capital loans to their SME clients. .

Teo and Wijaya argue that the main competitors of finance companies are not banks. Instead, Teo says many of his clients relied on loans from friends or family, savings and personal credit cards to fund their businesses. “The opportunity is huge because it’s a quality financing gap of US$300 billion,” he says.

In a prepared statement, SoftBank Investment Advisers Managing Partner Greg Moon said, “SMEs in Southeast Asia have historically struggled to access institutional funding and instead have been forced to rely primarily on personal financing to support growth. Finance companies are building a bridge for these companies to access more sustainable and cheaper finance by creating unique datasets of their performance and using AI-based technology to assess their creditworthiness more efficiently than traditional models.