We have been contacted by a lender that has funding earmarked for Educational Loans in Africa.

The parameters of the funding are below:

Deal Size: $1 million up to $30 million or more

Determination of Maximum Available: Up to 50% of Equity

Maximum Tenor: 60 months (preferably with amortization) for a senior loan.

NPL and PAR30 Requirements: Less than 10%

Does the institution need to have an educational loan book already or can the funding be used to begin an educational loan program? The preference is for the financial institution to already have an education loan book. Nonetheless, the lender is open to considering institutions that don’t have a loan book and is willing to begin an education loan program. In addition to this, the lender can provide technical assistance (TA). The TA is provided to an institution for specific purposes such as (i) education finance target market research, (ii) product refinement or development of new (education) products and their testing and roll-out, (iii) trainings directly to private education providers to help them improve education business literacy, (iv) social performance improvement, or (v) any other determined to be beneficial to the institution.