The education loan arm of HDFC, Credila Financial Services anticipates its loan book to increase 2.5 times during this fiscal.
HDFC holds a 51% stake in Credila. Credila is looking forward to leverage from the broad distribution network and big client base of HDFC Bank.
Prashant Bhonsle Credila Country Head said, “We have so far disbursed over Rs 40 crore and plan to reach Rs 100 crore by March 2011. HDFC can help us scale up quickly. Along with its brand equity, we can leverage its distribution structure and network”.
He added, “We can access its (HDFC’s) existing customers and database. It will not only help us expand but also bring down the cost of funds”.
Credila also offers line of credit from Punjab National Bank (PNB).
Credila primarily lends to education sector at present. Bhonsle maintained, “This is an asset class in India which has not been focused on as a separate venture. While PSBs have been offering student loan services, they have been selling it as part of the product portfolio they offer.”