Lorien Finance is revolutionizing student loans with $75 million in loan applications within weeks of launch


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Lorien Finance is revolutionizing student loans with $75 million in loan applications within weeks of launch

August 26: Lorien Finance, an award-winning, unique cross-border fintech platform, makes student loans easily accessible and affordable by enabling overseas student applicants to obtain a loan and open a US bank account directly from India in just a few clicks. The platform received more than $75 million in loan applications within weeks of its launch.

“Funding hurdles are preventing millions of Indian students from considering an education in the US. And the students who take out loans from Indian banks end up paying high interest rates and fees, affecting their ability to save money and access credit for other important needs in life. ” notes Nikhil Mudgal, Founder and CEO of Lorien Finance. With 14 years of investment banking and lending industry experience in the US and European markets having worked at global banks such as Goldman Sachs, Jefferies and PNC, Nikhil founded Lorien Finance after understanding the difficulties faced by immigrant students in securing and Repaying a student loan identified for studying abroad.

Lorien’s core team brings more than 40 years of experience in the global financial services industry, working as operators, advisors, lenders, risk managers and entrepreneurs. While Vishal Mundhra, co-founder and CTO of Lorien Finance, leads product development at Lorien, Gaurav Arya leads Indian sales and brings over 14 years of business development, strategy and operations experience in the Indian fintech space.

Lorien disrupts the status quo by combining its US funding ties with an understanding of Indian culture and financial risks. “Our mission is to make credit cheaper, more accessible and more transparent for students by connecting U.S. banks to student financing needs and privatizing credit risk while solving an important social problem,” says Nikhil.

The annual spending of Indian students studying abroad is expected to reach US$100 billion by 2025, and the number of Indian students studying abroad is expected to reach 2 million by 2025. However, it can be very daunting for an Indian middle class to afford a US educated family. Therefore, most students opt for an education loan to fulfill their dream of studying at a foreign university or college.

Lorien Finance offers Indian students education loans at interest rates as low as 8.5 percent so they don’t have to bear the burden of high monthly payments. In addition, it requires no collateral and does not charge forex conversion fees, prepayment penalties or hidden fees. Applicants can skip the paperwork and have their loans approved in three days thanks to their fast online application process.

“Our strong relationships with US banks and private debt funds allow us to raise capital on favorable terms, which allows us to offer our clients lower interest rates on student loans,” adds Nikhil.

Lorien’s underwriting model is progressive. Unlike other lenders who look to current solvency, Lorien looks at future income potential to underwrite and sanction loans. The company analyzes local credit history and alternative data sources to find multiple ways to prove creditworthiness.

Headquartered in New York and New Delhi, Lorien Finance sets itself apart from local banks and other lenders in the market with its exceptional customer support that makes getting a student loan incredibly quick and hassle-free. It also offers price discounts to encourage and reward timely payments. The company has also eliminated the need for insurance compared to the 1.5 percent required by most Indian lenders. Students can also start building their US credit history as the loan is granted and repaid in USD.

The platform was recently recognized by the World Association of Small and Medium Enterprises (WASME) with the Global Icon Award 2022 for “Best Cross-Border Fintech Platform”. After revolutionizing the Indian market, the company plans to expand the same model to other emerging markets such as Southeast Asia, South America and Africa.

The company is backed by prominent investors including Venture Catalysts, TSM Ventures, Kunal Shah (CRED), Aman Gupta & Sameer Mehta (boAt Lifestyle), Brijesh Agrawal (IndiaMart), Varun Alagh (CEO, Mamaearth), Arjun Vaidya Dhruv Dhanraj Bahl (COO, BharatPe), Shiprocket Founder, Classplus Founder, Yaser Moustafa (CEO, NBK Capital – Kuwait) and John Werner (Ex-EPP, PNC Bank).

Student loans and US bank accounts are just early product offerings with big plans for the future. Lorien isn’t just a student loan company. Its vision is to become a neobank, offering our clients a full range of consumer financial services while working and relocating with families in the United States. They establish a banking and lending relationship with customers even before they set foot in the US.

More information can be found on their website:

https://www.lorien.finance/

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