Oraan has achieved a major milestone with the acquisition of its NBFC license, marking a significant step forward in its mission to democratize financial services. The initial rollout of this license will prioritize the education sector, a cause deeply meaningful to Oraan’s team.
In Pakistan, the escalating cost of higher education has emerged as a critical issue, with annual expenses averaging PKR 574,472. This figure represents a substantial financial burden, consuming nearly 80% of income for the wealthiest households. Moreover, education inflation has surged to a five-year high of 15.34%, exacerbating affordability challenges.
Private educational institutions offer superior resources but come with significantly higher costs, posing a formidable barrier for many students. Compounded by the government’s modest allocation of 1.7% of GDP to education, a substantial number of students lack adequate financial support.
With the NBFC license, Oraan aims to narrow the gap between potential and opportunity by offering practical financial solutions. The company’s objective is to empower students to invest in their education without the strain of financial stress, enabling them to build credit histories and acquire financial literacy before entering the workforce.
Halima, Oraan’s CEO, shares a personal connection to this mission, recalling the pivotal role affordable financial solutions played in her own educational journey at the University of Waterloo. Her aspiration is to extend similar opportunities to students across Pakistan.
Under the NBFC license, Oraan has developed a new financial product tailored to address the specific needs of students and educational institutions. This product is the result of extensive collaboration with stakeholders during its pilot phase, ensuring it meets the diverse financial requirements of students pursuing quality education.
Oraan’s initiative aims to offer inclusive, accessible financing options that bridge the affordability gap, allowing more students to pursue education without falling into unsustainable debt. This approach not only benefits individual students but also contributes to cultivating a more educated and empowered generation.
Oraan acknowledges the support of the Securities and Exchange Commission of Pakistan (SECP) and expresses gratitude to educational institutions and students who contributed to shaping this innovative financial product.
Looking ahead, Oraan remains steadfast in its commitment to enhancing educational accessibility for all. The company believes that its new financial product will pave the way for a brighter future for countless students in Pakistan. By addressing financial barriers to education, Oraan strives to foster a more inclusive and equitable society.
In summary, Oraan’s attainment of the NBFC license signifies a significant advancement in educational finance in Pakistan. Through its focus on innovation and customer-centricity, Oraan is poised to redefine how students access and afford quality education, promising transformative impact for the nation’s educational landscape.