PhysicsWallah exits student lending, sells ₹96 crore loan book to Auxilo

PhysicsWallah has withdrawn from direct student lending through the sale of FinZ Finance's education loan portfolio to Auxilo Finserve, an NBFC focused on the same segment. The loan book was reported at Rs 95.79 crore, rounded to Rs 96 crore in the headline amount. The transaction transfers the portfolio from PhysicsWallah's lending unit to a specialist financier and marks the education company's exit from holding these loans directly. No sale price, completion date, portfolio yield, borrower profile or asset quality details were provided, limiting assessment of the economics for either side.

For Indian markets, the deal matters chiefly as a read through for NBFC appetite for education finance and for platforms' willingness to retain credit risk on their own balance sheets. Auxilo's purchase may indicate specialist lenders still see value in student loans, but the absence of pricing and delinquency data prevents a firm conclusion. Listed banks and NBFCs with retail and education lending exposure could be sensitive to broader changes in funding costs, underwriting or asset quality. Financial services are down 8.5% over one month and 8.3% over three months. Further purchases on disclosed terms and stable repayments would confirm the reading, while weak collections or discounted sales would weaken it.