Filipinos have always put a high premium on education. For many less privileged families, getting a degree is considered a major step in the pursuit of a better life. Higher education however does not come for free, nor does it come cheap, especially in more established reputable private learning institutions.
Many families have turned to taking out loans from financial institutions, backed by promissory notes to pay the school for their children’s tuition. Unable to pay the tuition, a student could fail to enroll for the following semester.
Seeing the need to address this concern, education financing company ErudiFi launched Bukas aiming to provide a win-win situation for both learning institutions and families with its Study Now, Pay Later model. Working with accredited schools and universities, the company offers data-driven financing solutions that support student recruitment and retention, thereby allowing students the opportunity to achieve their aspirations by overcoming financial constraints.
Partner schools are given an assured revenue stream from guaranteed tuition payments from Bukas users. Meanwhile, families are also given generous terms which lessens the financial burden of tuition fees on the monthly budget.
Under Bukas’ financing program, applicants can borrow up to 100 percent of the tuition, laboratory fees, miscellaneous fees, and other enrollment fees. This will be paid off via a 12-month installment plan interest rates as low as 1.5 percent per month.
Since its launch in 2019, the company has been steadily increasing its reach, partnering with several notable schools such as Far Eastern University, Mapua University, Centro Escolar University, PHINMA Education Network, Adamson University, and others. This has allowed Bukas to offer financial aid to over 180,000 students enrolled in partner institutions.
This success, both as a financial business and as a social enterprise, allowed parent company ErudiFi to secure $5 million in a series A funding round co-led by venture capital firms Monk’s Hill Ventures and Qualgro.
The funding will be used to make key hires across product and engineering, marketing and operations, business development, and data functions. Erudifi also plans to scale its education financing services, deepen its footprint in existing markets with educational institution partners, and invest in product innovation to deepen engagement and relationship with students and schools.
“Our partnership with Monk’s Hill Ventures and Qualgro opens a greater opportunity for us to further our mission in making education more affordable. Nearly two-thirds of Filipino youths are unable to access higher education due to the lack of financing, and it is our dream to be able to bridge this gap. With this partnership, we are grateful to be able to pursue our goal of helping students build a better tomorrow,” said Riche Lim, Co-Founder, Chief Financial Officer, and Chief Strategy Officer of ErudiFi.