ISA Powered Assured Job Success Program.

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he education sector is among India’s speediest-developing sectors, is explicitly contributive to innovation, principally ISA (Income Share Agreement) plays a key role in career funding when it comes to the quality of learning, teaching and education and it is bringing an idea to bridging a critical gap between low-income families and education through good institutions.

So What ISA does? ISA (Income sharing agreement) is a new trending concept in India that generates immense potential in youth. An Income Share Agreement is a financial disposition that provides money settlement for a service or program to an individual with certain terms and conditions depending on the institutes in which he agrees to pay back some percentage of his future income for a specific period of time after his job. In brief, it is actually a contract between a person and an institute/organization in which an individual receiving money for his education promises to return money to the ISA provider a fixed part of his earnings for a set amount of time after he completes his education.

It eases the pain or anxiety of job hunt for the students and job seekers. It is an uncomplicated mode of financing saleable educational and professional courses/ programs by lowering the risk for low-income people and also diminishing the risk associated with debt for students. It encourages institutes transmitting valuable knowledge and key skills through professional courses to look for students beyond the restricted band of rich segment who can afford high-priced educational training. The overall risk comes down when institutions, organizations or universities offer ISA powered programs thereby playing an extremely crucial role. Sometimes people relate ISA with a typical student loan but ISAs are not students loans as both are totally two different concepts of financing education.

Let us make an effort to understand why ISA has become well-liked, approved by the education system and is extensively welcomed by people. It makes people more secure as institutions in-turn become accountable when it comes to job placements of their students. They take action to ensure that their students learn and perform better or more than all others of the same kind among competitors in their chosen course. It seems to be the flawless model for the students and their parents, remarkably better than student loans as there is zero per cent interest. The only expectation is the payback when their students would be landed on a level where they have an excellent job. So impressive as to be difficult to believe. Isn’t it? But it is very true and acceptable. The practicability, applicability and enforceability of such ISAs are shown to rely on a number of organizational attributes comprising of the degree of mentors participation, students engagement, overall organization involvement and decentralization of the firm.

Income share percentage, an amount that a person pays during his job is of pivotal importance in relation to ISA. People raise this question generally that “How much they have to pay from their gross income every month”? College ISAs usually have income sharing percentage between 2 and 10 percent, according to the 2019 “State of the Income Share Agreement (ISA) Market” report from Career Karma, an organization emphasizing on tech career through a community of peers, mentors and coaches. ISA is a model that should reflect your assumed future income and should show great potency in fulfilling your job dreams. For example, IndyWise’s salary floor is INR 4–40 lakhs for freshers and expects salary hike of upto 30% for working professionals and people have to pay just 8–10% of their salary for 24 months which is 250% cheaper than other ISA models.

Payment cap under ISA is a consumer safeguard that limits the amount that a person pays monthly/yearly on an adjustable-rate after getting a job. The payment cap is typically a function of how much company receives from the consumer. One more important question is “How long the ISA contract lasts”? In general terms, repayment terms typically range from two years to 10 years. Example: At IndyWise, if a person doesn’t get a job within a year, ISA would be cancelled and a person does not pay anything with a job less than 4 lakhs or without any job. It should be noted that the terms and conditions of the income sharing agreement vary from one institution to another institution. Also payment of the percentage rate annually or monthly depends on the duration of your term or course and the payment cap.

India’s market is convenient and opportune for instruments like ISA because here people have talents but they fail in their career due to their low disposable income hence ISA is providing a fruitful path to success. Nowadays, ISA based startups in India are struggling to surmount with trending techniques as they move further. With an ISA, the student is transforming their future potential into current financial capital acquiring skills and achieving goals in a favorable duration then repaying the amount easily in subsequent years.

Take an important note that the ISA program heaves you up on the career spiral that leads to a self-fulfilling prophecy. You may connect with IndyWise now and can have a clear understanding of our ISA program.

IndyWise is a mentoring driven upskilling platform that helps startups and businesses solving their talent crunch and skills gap.