Oraan is thrilled to announce the receipt of its NBFC license, marking a pivotal advancement in its mission to make financial services accessible and fair. The initial application of this license will focus on the education sector, an area that holds significant personal value to the team at Oraan.
The rising cost of higher education in Pakistan has become a major issue, with average annual expenses now reaching PKR 574,472. This figure accounts for nearly 80% of the income for the wealthiest households, making it a heavy financial burden for many. Furthermore, education inflation has surged to a five-year high of 15.34%, further complicating affordability.
Private educational institutions in Pakistan offer better resources but at a much higher cost, creating a barrier for many students. With the government allocating only 1.7% of its GDP to education, a large number of students are left without adequate financial support.
With the NBFC license, Oraan aims to close the gap between potential and opportunity by offering practical financial solutions. The company’s goal is to enable students to invest in their education without the pressure of financial stress, helping them build a credit history and gain financial literacy before entering the workforce.
Oraan’s CEO, Halima, shared her personal connection to this mission, recalling how affordable financial solutions were crucial in her own educational journey at the University of Waterloo. She hopes to extend similar opportunities to students throughout Pakistan.
The new financial product developed under the NBFC license aims to make high-quality education both affordable and accessible. Over the past few years, Oraan has worked closely with students and educational institutions to understand their financial needs, and this product has been tailored to meet those specific requirements.
Oraan’s initiative seeks to provide inclusive, accessible financing options to bridge the affordability gap, allowing more students to pursue quality education without accruing unsustainable debt. This approach not only benefits students but also contributes to building a more educated and empowered generation.
Oraan extends its gratitude to the Securities and Exchange Commission of Pakistan (SECP) for their support, as well as to the educational institutions and students who have helped shape this product during its pilot phase.
Looking to the future, Oraan remains committed to making education accessible to all. The company believes that this new financial product will pave the way for a brighter future for many students in Pakistan. By tackling financial barriers to education, Oraan aims to create a more inclusive and fair society.
All in all, Oraan’s acquisition of the NBFC license represents a significant leap forward in educational finance in Pakistan. The company’s focus on innovation and meeting the needs of its customers promises to transform how students afford and access quality education.
