Varthana provides loans to affordable private schools, enhancing education infrastructure and quality.
Lack of expansion capital is a major hurdle to the progress of affordable private schools that offer low cost (average monthly fee of USD 5 to 20 per student), high quality education to low-income household children. These schools are not viewed as business entities by banks; their typical loan requirement (approximately USD 15’000) is too small for banks and too big for Micro Finance Institutions. As a result, they cannot access the right type of financing, and therefore have to compromise on quality of infrastructure as well as the capacity to enroll students.
Varthana offers financial support to schools to increase capacity and thereby access to education for students from low-income households. The loans also enable schools to improve infrastructure to provide better quality education.
By bridging the financing gap for affordable private schools, Varthana helps
|# of schools funded||20||168||704||1'796||2'700|
|# of students impacted||11'898||94'769||316'468||826'944||1'642'747|
|Loans disbursed (USD millions)||0.2||2.5||10.2||31.1||44.1|
* Fiscal year April to March
Steve Hardgrave, Co-Founder and CEO of Varthana
"LGT Impact's ability to provide all flavours of capital is a very special quality that is particularly useful for social enterprises with a wide range of initiatives. This support allows us to address issues that are critical for our business as well as issues that support the broader ecosystem. Another advantage is LGT Impact's ability to invest at various stages of the business. Having a committed partner that can see through the full growth cycle of an enterprise is extremely helpful."