Ensure access to quality education and up-to-date infrastructure and facilities for students from lower- and middle-income families

While the model has worked so far, it is not yet proven if learning outcomes are indeed achieved in the institutes funded under this model.

COVID-19 related disruptions might affect the appetite in budget private schools for improvements and may also lead to an increase in non-performing assets (NPAs) for lenders. Since the model will definitely continue to contribute to the quality of education, the consequences of the above-mentioned risk are muted for people and the planet, making the risk category medium.

Using digital platforms, improve ubiquitous access to K12 educational tools and course materials in vernacular languages to improve literacy and numeracy outcomes for students from lower and middle income households.

1. The draft New Education Policy 2019 and NITI Aayog's Strategy for New India @75 both acknowledge the funding gap in education (1.16) (1.17) 2. GOI's policy on the not-for-profit school structure disincentivises equity investments in education. Therefore the policy increases the need and business case for debt to fill the funding gap (1.6) 3. Improvement in learning outcomes and better quality education have been highlighted as a priority across policy documents (1.16) (1.17)

Financial incentives: As per the RBI norms, currently, on-lending for registered Non-Banking Financial Companies (other than Microfinance Institutions) towards agriculture, MSMEs and the housing sector, up to prescribed limits, are treated as priority sector loans. As per the 2019 fiscal budget, NBFCs who specialize in education financing do not have such privileges (1.20) Therefore the education sector NBFCs do not enjoy priority sector benefits under the current norms.

Education financing institutes are governed as Non-Banking Financial Companies (NBFCs) by the Reserve Bank of India (RBI), the country's central bank, and strictly monitored as per the extend guidelines provided by RBI(1.18) Deals in this vertical face RBI scrutiny (1.19)

Investor: International Finance Corporation (IFC), Asian Development Bank (ADB), CX-Partners, Gray Matters Capital, Caspian Advisors, Kedaara Capital, ChrysCapital, Elevar Equity, LGT Venture Philanthropy, Omidyar Network and Kaizenvest, Michael & Susan Dell Foundation have invested in education financing companies (1.21). Corporations: Indian School Finance Company, Varthana, Shiksha Financial Services and Auxilo Finserve provide credit solutions to budget private schools

CCS and EdelGive have reports advocating the need for education financing, CSF provides grants for primary education, National Independent School Alliance (NISA) is a platform that brings together budget private schools (BPS) from across the country to give them a unified voice to address their concerns about legislations and by-laws which apply to them and to facilitate quality improvement in schools. NISA has advocated institute financing in the past. More than a 3rd of CSR spending in India goes towards Education and Skilling, with a number of foundations providing grants to education institutes (1.22)

Investors are agnostic to the location of the business as long as the area offers a significant market. The market size is directly tied to the need for education services in each State. Some key insights: 1. More than 50% of the enrolment in Haryana, Manipur, Nagaland, Puducherry, Telangana and UP are in Private Unaided schools. 2. Uttar Pradesh, Rajasthan, Madhya Pradesh and Maharashtra together accounted for 54% of all enrolment in private unaided schools in India in 2016 according to Unified District Information System for Education (U-DISE).