NBFC

NBFC’s Initiative on Zero-cost EMI for Digital Classrooms

Leading non-banking financial company (NBFC) Standard Capital has lately drawn notice for its ground-breaking Zero-Cost EMI plan, which aims to transform education. This new product is aimed at digital classrooms and offers reasonably priced financing options to students and educational institutions looking to improve their learning environments.

The initiative aims to lower financial barriers and provide access to cutting-edge learning technology in response to the rising demand for digital education resources. Because Standard Capital’s shares are expected to rise in reaction to this calculated move, which aligns the firm with the growing digital education industry, investors have taken note.

The Rise of Digital Classrooms in India

India’s digital learning industry has grown rapidly in recent years because of government programs like Digital India and rising internet usage. Industry projections predict that the Indian education market will develop at a compound annual growth rate (CAGR) of 39.77% to reach $10.4 billion by 2025. With more than 260 million pupils and more than 1.5 million schools, there is enormous opportunity for digital learning solutions.

Interactive flat panels, in our opinion, are a crucial part of the digital change that will shape education in the future. Schools may use this state-of-the-art equipment without having to worry about the expense, thanks to our zero-cost EMI program. The circumstance benefits society as a whole as well as education, according to Gaurav Jindal, Managing Director of Quicktouch.

Financially speaking, Standard Capital expects to generate between 15 and 16 per cent a year on its assets under management (AUM) without putting more strain on the educational system. The company has pledged ₹100 crores for this new financial endeavour, demonstrating its commitment to generating value for shareholders in both the financial and social spheres.

This program is in line with Standard Capital’s long-term goal of using education to create a brighter future. The company is contributing to the development of a more robust educational infrastructure for future generations by providing financing options that make technological advancements accessible.

A new age of interactive education that is beneficial to students, instructors, and society as a whole is now possible for schools all over the nation to digitally transform their teaching techniques with no financial burden.

Standard Capital’s Shares Surge with Zero-Cost EMI

Since Standard Capital has launched a zero-cost EMI plan for educational institutions and schools to purchase interactive flat panels (IFPs), the company’s shares will be the centre of attention. This project has the potential to completely transform education by providing both teachers and students with an enhanced, technology-enhanced learning environment.

In addition to modernising classrooms, IFPs will assist schools in drastically reducing the cost of supplies like chalk and markers. The move away from conventional chalkboards will also lessen respiratory issues brought on by chalk dust, improving the health of both instructors and pupils.

Asthma affects over 30 million children in India, or about 6% of all children, according to the Global Asthma Report. Poor air quality, especially indoor contaminants like chalk dust in schools, is thought to aggravate respiratory problems in children, according to the World Health Organisation (WHO).

Due to government programs like Digital India and rising internet penetration, digital learning in India has grown rapidly in recent years. Industry projections predict that the Indian education market will develop at a compound annual growth rate (CAGR) of 39.77% to reach $10.4 billion by 2025. With more than 260 million pupils and more than 1.5 million schools, there is enormous opportunity for digital learning solutions.

Financially speaking, Standard Capital expects to generate between 15 and 16 per cent a year on its assets under management (AUM) without putting more strain on the educational system. The company has pledged ₹100 crores for this new financial endeavour, demonstrating its commitment to generating value for shareholders in both the financial and social spheres. Financial ventures such as Standard Capital take NBFC legal support to stay compliant and run their business smoothly.

What is No-Cost EMI?

A loan that enables you to make set monthly payments over a certain length of time is known as an equated monthly instalment program, or EMI. A free EMI plan is a little different since it lets you pay for a costly item or service with virtually no interest.

EMIs are a fantastic substitute for the conventional method of making a single, large payment for a good or service. If you choose a standard EMI plan, you agree to pay just the product price over a certain period, with each instalment carrying a hefty interest rate.

Conversely, a no-cost EMI plan offers the allure of zero interest costs, as the name suggests. The consumer who borrows money from the lender is not required to pay interest on that amount. They might be an excellent means of assisting with large expenditures.

How Do No-cost EMIs Work?

As we previously explained, a free EMI plan enables you to pay back your loan in equal instalments over a certain length of time without incurring interest. To use the free EMI plan, the borrower may have to pay an upfront charge. This price can be paid in full at the time of application or as a component of the monthly instalments.

Two primary categories of free EMIs exist:

• Comparing the EMI savings against interest

With this approach, the shop does not include any reduction in the price that is given to the EMI seeker. To the free EMI seeker, for instance, a product that is given at a discounted rate to all consumers will be offered at its usual price.

• When interest is included in the instalment payments

With this free EMI, a borrower may spread out the interest payments throughout the course of the loan in equal instalments. In order to facilitate the borrowing procedure for their clients, banks, non-banking financial firms (NBFCs), and other financial organisations provide this kind of discount.

What are the Advantages of No-cost EMIs?

Free EMIs have been a popular choice for consumers wishing to purchase pricey goods like appliances and vehicles, regardless of whether they come with additional fees. Users of credit cards, for instance, can choose to pay the entire amount up front and then divide it up into equal monthly instalments for a predetermined amount of time.

Because it might temporarily ease financial difficulties, users like this kind of funding. Although they might not have enough cash on hand to cover the entire cost of their purchase at once, they can afford to make monthly instalments to pay it off over time.

• In addition to offering a quick and simple loan application process, free EMIs also make it possible for those with poor credit to obtain a loan.
• The amount borrowed does not require users to pay interest directly.
• The associated processing or paperwork fees are largely insignificant.
• With several banks, merchants, and lenders, customers may make use of this option.
• Choosing a modest number of free, smaller loans can raise your credit score as long as you make your loan payments on time.

For a variety of reasons, banks, merchants, and lenders offer their clients free EMIs; nonetheless, their primary goal is to persuade them to purchase their goods or services.

• Banks can draw in more clients and keep them around for a while.
• Retailers can increase sales and satisfy customers with their purchases.
• They serve as a marketing tool for the loan products offered by lenders.

Wrapping up

The launch of the Zero-Cost EMI plan by Standard Capital is a big step in improving cost and accessibility in online learning. This project not only enables educational institutions and students to embrace cutting-edge learning technology by reducing their financial burden, but it also establishes Standard Capital as a pioneer in the rapidly changing tech finance market.

The encouraging reaction from investors shows faith in the company’s strategic path as the demand for virtual classrooms keeps rising. In the future, Standard Capital’s dedication to accessibility and innovation is probably going to spur more share growth, making it a desirable choice for investors hoping to contribute to the advancement of education while maybe earning profits.

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