Organizing a loan to frequent the university is an investment in your future. But unlike the United States, Pakistan students do not have easy access to university loans. Instead, most families must establish higher interest rates for personal loans that may require guarantees such as land or houses. Consequently, the college is inaccessible for many students. This is one of the reasons why only 13% Pakistani students attend the university.
Now Edufi, founded by Aleena Nadeem '16, offers student loans with low interest to a wider band of Pakistani. Edufi, which is the abbreviation of “Finance Education”, uses a credit rating system based on artificial intelligence to qualify borrowers and directly pay the colleges. The borrowers then make monthly payments to Edufi as well as service costs of 1.4% – much lower than what is available for most students today.
“The fees for the college are extremely unaffordable for the average middle class at the moment,” says Nadeem. “With our system” Study now, pay later “, we break down this initial cost of payments, which makes it more affordable for existing students and a new group of people who never thought that higher education was possible.”
Edufi was formed in 2021 and after obtaining regulatory approval, the company began to pay loans to people in Pakistan last year. In the first six months, Edufi spent more than half a million dollars in loans. Since then, the company's inclusive approach for the eligible candidates has been validated: today, less than 1 in 10,000 of these loans are not reimbursed.
As Edufi awareness grows, Nadeem thinks that the company can contribute more broadly to the modernization and development of Pakistan.
“We accept so many more people who could not have obtained a bank loan,” explains Nadeem. “That makes more people go to university. The impact of achieving inexpensive and fast credit in the education sector on a developing country like Pakistan is enormous. ”
Best credit
At the British international high school, Nadeem attended, no one had ever entered an Ivy League school. It made his acceptance put him on a big problem.
“It was by far my first choice,” explains Nadeem.
When she arrived on campus, Nadeem took courses at MIT that taught her auction, risks and credit.
“In the work that I do with Edufi now, I apply what I have learned in my lessons in the real world,” explains Nadeem.
Nadeem worked in the Goldman Sachs credit division in London after obtaining the diploma, but the obstacles to access to higher education in his country of origin still bother her.
In Pakistan, some targeted programs provide financial support to students with exceptionally high ratings who cannot afford a college, but the vast majority of families must find other ways to finance the college.
“Most students and their families must obtain personal loans from standard banks, but that forces them to open a bank account, which could take two months,” said Nadeem. “The costs in the Pakistan education sector must be paid shortly after sending requests, and when banks accept or reject you, payment could already be late.”
Private loans in Pakistan are delivered with much higher interest rates than student loans in America. Many loans also require borrowers to set up a property as a guarantee. These challenges prevent many promising students from frequenting college.
Edufi uses technology to improve the loan qualification process. In Pakistan, the parent is the main borrower. EDUFI has developed an algorithmic credit rating system which considers the borrower's financial history, then makes payments directly at the college on their behalf. Edufi also works directly with colleges to consider the students' ratings and the history of payments at school.
The borrowers reimburse the loan in monthly payments with service fees of 1.4%. No guarantee is required.
“We are the first movers of student loans and currently hold the largest portfolio of student loans in the country,” explains Nadeem. “We offer extremely subsidized prices to many people. Our prices are much cheaper than banking alternatives. We always make a profit, but we are focused on the impact, so we make the disbursements by a larger number of people rather than increasing the margin per person. ”
Nadeem says that Edufi's approach qualifies many more people for loans compared to banks and does it five times faster. This makes university more accessible to students in Pakistan.
“Banks charge high interest rates to people with the best credit scores,” says Nadeem. “By not gaining guarantee, we really open the credit space to new people who have not been able to obtain a bank loan. The easier credit gives the individual in the middle class middle class the ability to change the lives of their families. ”
Help countries helping people
Edufi obtained its non -banking financial license in February 2025. The company obtained an early traction last year by word of mouth and quickly opened up to borrowers across the country. Since then, Nadeem says that many people have traveled long distances at Edufi headquarters to confirm that they are a credible operation. Nadeem also regularly receives messages from Pakistan students thanking Edufi for helping them go to college.
After approving his model this year, Edufi plans to extend to Saudi Arabia. Finally, he plans to offer his loans to the students of the Middle East, and Nadeem thinks that the global student of student loans could be improved by using Edufi's approach.
“Edufi is modeled after Sofi in San Francisco,” said Nadeem about the major financing company that started by providing student loans and extended to mortgages, credit cards and other banking services. “I try to build the Sofi of Pakistan and the Middle East. But it is really a combination of Sofi and Grameen Bank (in Bangladesh), which extends credit to low -income people to get them out of poverty. ”
By helping people extend their education and reaching their full potential, Nadeem thinks that EDUFI will one day accelerate the development of whole nations.
“Education is the basic pillar from which a country stands,” says Nadeem. “You cannot progress as a country without making education as accessible and affordable as possible. Edufi achieves it by directing capital to what is frankly a hungry education sector. ”
