- Loan Successfully Funded On 22 Aug 2024 ​
Inclusive Education for International Students in Australia
EdFin
- Melbourne, Victoria, Australia
Menu
- 80,000 AUD
Loan successfully funded
EdFin is a profit for purpose company that provides education related lending to international students. This lending relieves students of some of the challenges they face when they study abroad, including financial stress and social isolation. The LendforGood impact loan will enable EdFin to keep up with student demand until they are able to source a larger line of capital to underwrite their loan book.
- 5 Lenders
Committed
- 12 months
Loan Period
- 12%
Interest Rate
- BACKGROUND
Loan summary
The EdFin mission is to help all learners to reach their potential, access high quality education and achieve their academic goals without undue financial stress. More than 50% of international students experience financial stress due to information asymmetries and limitations to market access in financial services, housing and employment. This has flow on negative impact on social, physical and mental wellbeing and, of course, the quality of their education (and in some cases may lead to dropping out of education altogether).
EdFin has been addressing this problem by providing international students with short term loans to help them pay their course fees (most of which need to be paid upfront) and for education related expenses. The students pay these loans back over the ensuing 6 or so months.
Due to unprecedented demand for their services, EdFin is seeking a loan to enable them to provide further loans to international students who need them.
Borrower's mission
EdFin has successfully secured capital from both grants and other lenders to date, which has been used to provide international students with education loans. Through this activity, EdFin has developed a proven model that blends social processes and community engagement with effective loan management, keeping defaults exceptionally low and providing their customers with a great experience. EdFin has an Australian credit licence and is unique in the Australian landscape.
Driven by its success and strong word of mouth, the demand for its service from international students continues to grow. EdFin requires more capital to meet customer demand in the second half of 2024, which will also strengthen its commercial position and traction as it pursues partnerships with capital partners that can underwrite its loan book at much higher amounts and over much longer terms.
The activities funded by this loan are helping to achieve the above Sustainable Development Goals as defined by the UN.
Intermediary's experience with impact enterprises
For more than 8 years, Red Hat Impact has helped impact enterprises by raising capital and providing other kinds of business and strategy support. We have raised more than $3M from our network of impact investors, and loaned this capital to support 30 enterprises. We use a crowd-lending model to raise loan capital. As of May 2024, we maintain a 98% success rate on loan repayment. We establish close working relationships with all of the impact enterprises we raise debt capital for, and co-manage risks with them during the loan term.
- IMPACT
Impacts and how they are measured
EdFin brings an invaluable benefit to international students who come to Australia to study. Not only do they help ease financial stress but Edfin also positively impacts the student’s overall wellbeing. EdFin assesses its impact across four wellbeing dimensions through its annual survey and impact report: Financial (eg. Knowledge and skills), Mental (eg. Cultural capability and belonging), Social (eg. Family and friends) and Physical (eg. Housing).
Ready to lend?
This loan is not currently accepting subscriptions, but we invite you to check out some of the other live loans on the platform. In order to participate in loans you must be a registered lender on the LendForGood platform. If this is your first time lending with us we’ll guide you through the process to first get registered. Thank you for lending your passion!