EMI schemes in Bengaluru’s private schools spark concerns over rising education costs

Private schools in Bengaluru are increasingly adopting Equated Monthly Installment (EMI) schemes in collaboration with private financiers to facilitate fee payments, drawing concern from parent groups and education advocates.

With no fee cap or regulatory oversight, these schools are charging exorbitant fees while offering loan options that critics say normalize unaffordable education costs.

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Parents report that nursery admissions alone can cost between ₹1.5 lakh and ₹2 lakh annually, with additional expenses of up to ₹30,000 for essentials such as uniforms, books, transport, and extracurricular activities. Despite mounting complaints, there has been little action from the state government to regulate school fee structures.

The introduction of finance-backed EMI plans has become a contentious issue, with many families alleging that they are being pressured into signing complex loan agreements. These agreements often involve high interest rates, leading to long-term financial strain. As a result, some parents find themselves trapped in debt merely to afford basic education for their children.

Observers warn that this trend marks a shift towards the commodification of education, where financial products are used to mask unaffordable fees rather than address the underlying problem of unregulated pricing.

The lack of government intervention continues to leave families vulnerable, raising urgent questions about the future of affordable schooling in the city.