Ajay Bohora – Credila Financial Services – Education Finance
Credila represents a story that highly driven, passionate and empowered team, driven by a clearly articulated vision and supported by a strong value system has a great potential to create history!
Credila, founded in 2006 is India's First Dedicated Education Loan Company with exclusive focus on funding students for their higher education in India and overseas. It started with DSP Merrill Lynch who picked up a 41% stake in Credila and that was the beginning of Credila. Later on HDFC Ltd. bought the equity stake from DSP Merrill Lynch and continued to infuse additional capital for growth. With that Credila became the subsidiary of HDFC Ltd., with HDFC holding the majority stake now.
Do you provide education loans for undergraduate (UG) studies?
Yes, Credila funds Indian students for both undergraduate and post graduate courses in India and overseas. Infact, Credila has funded thousands of students studying over 1000 different courses in over 2100+ institutes, across 35 different countries.
Generally how many applications per year you receive for UG courses? Out of this what percentage get education loans From Credila?
Credila receives thousands of applications per year for UG courses. Parents are also realizing the benefits of an education loan as a source of financing education vs the traditional means of self finance. The repayment responsibilities are being seen by numerous parents as an opportunity to inculcate the habit of financial discipline in their children. Credila offers customized solutions and has varied products to service as many applications as possible through our current set of branches, which are currently at select cities, mostly the metros.
What percentage of your applicants are for courses in India and for foreign universities?
The ratio has been about 50%-50%. For studies abroad, the cost of education is comparatively higher. Therefore, for students going abroad, a large percentage of those students and parents require education loans. However, for studies in India, depending on fees and cost of education, not every student and parent requires education loans. Credila, however, has products to cater to both the requirements.
Which are the most preferred foreign countries for UG studies among your applicants?
India is of course the major core of our UG courses. In addition to India, USA, Australia, Canada, UK also constitute our portfolio of UG students for studies abroad.
Which are the most preferred UG courses among your applicants?
Among the education loan applications which Credila receives, Engineering, Technology and Science are the most popular UG programs.
Typically what is the socio-economic profile of someone applying to Credila for education loans?
Credila doesn't specifically identify applications based on socio-economic profiles. Credila takes a holistic view on the education loan applications based on various parameters while appraising the education loan. Credila has funded Indian students and parents from various geographies, with quite diverse destination countries to study thousands of unique courses.
What are the eligibility requirements to get your financial assistance?
Credila does not believe in the 'one-size-fits-all' approach and hence evaluates each case holistically. We look at the student's provide, education background, collateral, co-borrower, choice of course, Institute, destination etc and offer the best that we can.
What is the average annual fee (all inclusive) for UG studies in UK and US these days? Out of this how much education loan does Credila provide?
The average annual fee for UG studies in the USA is approx. Rs. 20 lakh per year for both the USA and UK. Credila's Education Loan can cover both fee and the living expense. Also, Credila doesn't have any margin money. That means, Credila typically funds 100% of the cost of education including the living expenses. However, it's not mandatory for the students and parents to avail the entire amount. The interest gets charged only on the amount which is disbursed. Also, the interest doesn't start until the money is actually disbursed.
What is the average education loan amount you provide per student?
For Credila, the average education loan amount per student is about Rs. 12 lakh.
What is the procedure to apply for education loans from Credila for UG studies?
Credila offers a simple convenient and quick service with the facility to apply online. Post this, Credila offers door step service to clear queries and pick-up the documents.Post evaluation of the documents, money is disbursed for all sanctioned cases.
A step by step process would be:
Credila has a student friendly education loan application process:
Student: To complete Credila's online Education Loan Application Forms
Credila: To follow–up with the student & parents to answer any queries
Credila: Representative visits your house & collects signed application form with the supporting documents
Student: To provide a completed Education Loan Application form with all the required supporting documents
(Note: Students can apply to Credila for Education Loan even before confirmed admission)
Credila: Credit team to review & underwrite the Education Loan application
Credila: To approve the education loan or ask for any additional information required
Student: To complete the education loan disbursement formalities by signing the education loan agreement
Credila: The education loan amount is deposited in the required bank account electronically
Ideally, when should a class 12 student begin the process to apply for an education loan for UG courses?
Like the famous chicken or egg situation, most students/parents are often faced with a situation; as to what process needs to be tackled first – the admissions or the educational loan? Most banks require confirmed admissions before granting the approval letter for the education loan, whilst most universities prefer students with the assured funding.
How big is Credila in terms of revenue? Employees? Number of loans processed?
Credila has disbursed total education loans of over Rs. 3,300 crore. That makes Credila the largest private education loan lender in India. There is a dedicated passionate extended team of Credila of over 600 professionals spread across India.
By changing the rules of the game, making this industry customer centric, Credila has pioneered many firsts. It is the first specialized education loan provider in India besides many other achievements to its credit. Today, Credila is an HDFC arm and has carved out a niche for itself in the financial services industry and has become a preferred brand name for education loan for studies in India and overseas.
