Participatory financing as an alternative to student loans?

Ready to challenge it

Edukys is the participatory financing platform also called crowdfunding (student loans) which helps students to finance their academic studies, while offering an attractive remuneration to the investors who take part in this project.

First of all, Crowdfunding for those who are not yet familiar with it, represents the practices and methods of financial transactions that involve a large number of people in order to finance a project. Most often, it is a large number of people who invest a relatively small amount that allow the person with a project to find the funds requested.

student loans

It is within this framework that Edukys has decided to develop an innovative concept on the financing of students’ education. The founders had this idea when they realized that 15 to 20% of students were interested in taking out a loan to finance their studies but were unable to obtain these loans (for various reasons such as the lack of solvent guarantees for example) or that they could not find offers adapted to their profile.

Of course, to claim access to this alternative solution, interested students must prepare a file detailing their project, the studies and the path they wish to follow. Unfortunately, not all applications will be able to find funding because let us not forget that it is individuals (most often) who decide to make their contribution and provide a financial contribution (student loans).

The various profiles are, upstream, arbitrated by Edukys, which will analyse the risk of each profile received. For example, computer science students are moving to an industry in which unemployment is close to 0%, will be more easily validated by Edukys. Moreover, the first results and the progress of the studies are very important because a student who has already validated one or more years in the same course will have a better chance on his side.

And the investor in all this, what’s in it for him? First of all, it should be known that some of the people lending funds via Crowdfunding platforms (student loans) fund them for the sole purpose of providing financial assistance to an individual to help him develop his project (without necessarily getting reimbursed for the sums lent).

With Edukys, investors will recover their funds and receive profits (which can be very attractive). They will have access to the profile of the student with whom they decide to make a gesture, and will be able to follow the total amount collected for their prize pool and the progress of their academic program. In addition, they enable a student to continue these studies and prepare as well as possible for his or her professional future.

The characteristics of the loans offered by the platform are as follows:

-Amount between 1,000 and 12,000 euros

-Interest rates between 4.5 and 7%.

– Repayment period between 1 and 7 years

Finally, in order to provide security on loan repayments, Edukys (student loan) has set up a mutual protection fund to limit the risk for lenders. To make itself each borrower who signs a contract via the platform pays a contribution (ranging from 1 to 2% of the loan amount) to this protection fund. The objective being that, thanks to the accumulated money, in the case of a default, this will be able to compensate all or part of the capital losses.

Sources :

http://www.latribune.fr/vos-finances/banques-credit/le-financement-participatif-l-alternative-aux-prets-etudiants-616872.html

https://bonjouridee.com/edukys/

https://www.google.fr/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiFg4eW-P3SAhVGLcAKHZ26DW0QFggdMAA&url=https%3A%2F%2Fedukys.com%2F&usg=AFQjCNGVgL5SP5P0FmEoklVwK4Z7Arb-ZQ&bvm=bv.151325232,d.d2s

Florent Felix

Florent FELIX


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