Interest-Free Loans to Students – Read about the StuCred, a Fintech Startup

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Apr 6, 2020


Students in India today have Upgraded to Newer Version. With the inception of technology in the academic and social life, students out there are not just students but also are Freelancers, startup founders, online tutors, and social media influencers. 

Finance could be the willpower that helps them blaze their Spirits and Ideas to Keep progressing. In line with this, a ratio of millennials ends up having debts and mortgages with legal deeds in counter.  

In the course of this Lockdown, We have Good News for Students. ! 

The StuCred App 

It was Found by a Women Entrepreneur Henna Jain Tatia (26), and her brother Jaijash Tatia(27) in October 2018. It is an application that offers Indian Students real-time credit for a term of 30-60 days at 0% Interest.

In an Online Interaction with a Newspaper, She unfolds her experience of how technology helped her startup strive to top and also shared updates about the new Implementations to the services, the Plan is to introduce an one stop solutions for Students for the financial needs with new product lines to the system. 

This Sophisticated app allows students to do KYC verification and other authentication remotely and borrow money directly into a bank account with successful operations. The amount can be borrowed anywhere and it can range between Rs 500 and Rs 30,000 at a zero percent interest rate. The revenue of the app is generated by the levy of a flat service tax or minimal service tax instead of interests.

StuCred with Visionary Leaders and a mission with Possibilities 

The idea of creating an app like this started back in 2017 when Henna, Co-founder of StuCred came back to India after graduating with an MA Hons in Economics and International Relations from the University of St. Andrews, Scotland. She took a year’s break and started helping her brother Jaijash who had returned to India before Henna, and was working with the idea to start up in 2016. 

The duo studied in the UK and at their time there, they managed their financials through an interest-free overdraft from a UK bank, which allowed them to have small but sufficient credit month-to-month. Studying abroad, this allowed them to have better financial flexibility.  After returning to India, they realized that students in India did not have such financial services. Which then led to the start of StuCred, a one-stop application for college students’ financial needs. 

The main mission of StuCred is to help college students have access to formal financial inclusion and financial flexibility through a line of credit. Henna said that early access to credit helped her learn about the credit system and build her credit score.

She further added, “This nurtures borrowers by developing responsible borrowing patterns. It teaches students about the real world – the credit world. How to survive and thrive by using the credit smartly. This is something you cannot learn at school or college – only through experience.”

StuCred’s Team talk about the project 

When asked about the difference between StuCred and their competitors, Henna replied, “We have made sure that we only engage selected colleges, and we have our verification facilities which are very strong. The second thing is that our customer support is very quick and easy because our customers are very young, and they have a lot of basic questions.

StuCred is teaching them all the processes of the credit system, which no one really teaches unless and until you are out there with a job and a salary. So, we make sure that our borrowers understand this system beforehand with small but important sum values.”

Objective of StuCred

To add to more reasons as to why they decided to have a startup in Fintech, Henna and her brother Jaijash’s return to India coincided with the digital wave in the country. Internet users in India reached 465 million in June 2017 according to Make In India. The government was also promoting more cashless transactions. Demonetisation in 2016 forced more people to choose the digital route, and digital services like online banking, payments, and e-wallets were seeing increase inactivity.  The fintech sector also found a mention in 2017’s annual budget. These indeed were signs that promised success for anyone who wanted to start up in the fintech industry. 

Henna says, “There was a lot of untapped potential in the market waiting to be discovered. With technologies like India Stack , it was the perfect environment and perfect time for us to build such a product.” 

However, nothing comes easy and so there were challenges. With every challenge came something to learn. After identifying a gap in the market and an unserviced demographic, they began StuCred. In a short time, Henna is overwhelmed and surprised by the incredible amount of things that she has learned. 

“The learning curve in the startup environment is really steep, and you should be prepared for it,” she says.  She further added that dealing with several challenges is a part of the learning curve. A constant challenge for them is to keep up with the changing regulations in this sector however she said. 

Highlights: If you want to talk about StuCred App 

Jaijash, who had returned to India before Henna, was working with the idea to start up in 2016. In 2017, after Henna returned home, she initially started helping him out in her free time. Two months later, she took up a full-time role and became the co-founder of StuCred.

In one and a half years of operation, the Chennai-based startup claims to be having over 25,000 users. The blooming startup has tie-ups with over 250 colleges across the country, including IIT Bombay, IIM Ahmedabad, IIM Bengaluru, and many others. StuCred was nominated for an award at India FinTech forum’s Financial Inclusion category, which Henna credits as a great achievement for their team.

StuCred has some new products in the pipeline, and it is continuing to work on them. Henna believes that once the development phase is complete , they will take StuCred to new heights. 

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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