Source | economictimes.indiatimes.com | Shilpa Phadnis, Avik Das
Mohammed Hassan had to forego his monthly paycheque for six months when he joined the coding bootcamp at Masai School in Bengaluru. For the 24-year-old engineer from Salem, that was a luxury considering he was very dependent on the Rs 18,000 a month he earned as a mechanic. But one comfort was that he would have to pay Masai only after the course, and what was even more attractive was that he would have to pay only if he got a job with a minimum salary of Rs 6 lakh. After the course, he was picked up by social networking app ShareChat as a full-stack developer with a salary of Rs 18 lakh per annum — eight times his previous salary.
The enormous demand for software skills has encouraged a new business model that many students could find very attractive. Learn now, pay later, and that too, only if you get a certain minimum salary. The contract between the student and institution is called the income share agreement (ISA). If the student gets a job with at least that salary, he/she will pay 15-17% of the monthly salary to the institution for the first two-three years. “I could not possibly have pursued the course without the ISA,” says Hassan.