The Indian School Finance Company is a Hyderabad-based non-banking finance company (NBFC) which extends medium term loans at market rates to private schools which fall in the monthly average student fee range of Rs 250-600 (US$5-12). School borrowers must meet credit and collateral requirements and be able to demonstrate the project management skills needed to use and repay borrowed loan capital effectively. Average loan sizes are about 12 lakh rupees (US$24,000) and are used primarily for infrastructure investment which allows an increase in enrollment which increases school revenue and ability to repay loan obligations. The ISFC's goal is to identify the most capable school operators, help them improve the academic quality of their programs for more children, and to expand our financial support of their schools over time as their experience with making productive use of loans improves.

Low cost private schools have been operating all across India for many years and our objective is to expand our finance operations beyond Andhra Pradesh to other states. We will be established in two more cities by year end 2009, and 4 more cities by the end of 2010.