Education loan provider Credila Financial Services got fresh cash infusion from Housing Development Finance Corporation (HDFC) in the form of equity during the June quarter, which raised the latter’s stake in the company to 74.7 per cent from 62 per cent earlier. HDFC acquired the additional shares from promoters Anil Bohora and Ajay Bohora. The mortgage lender would be keen to invest more funds and increase its stake in the company further as and when there is credit requirement, Credila chief operating officer Prashant Bhosale said. With a growing number of students seeking education loans, Credila hopes to grow its loans portfolio to about Rs 750 crore by the end of this financial year. Credila started operations in March 2008 and in late 2009, HDFC picked up 41 per cent stake in the company from investor Merrill Lynch for Rs 10 crore. The promoters held the remaining stake. For the year 2010-11, Credila had an outstanding loan of Rs 153.51 crore and clocked net loss of Rs 11.25 crore. During the year, Credila obtained two credit lines from Syndicate Bank for about Rs 250 crore towards credit advancement for business. “There are about 13-15 million students enrolled in India for higher education and at least 150,000 students who have flown abroad for studies. It presents a large opportunity for exclusive education loans players like us. Considering our small base, we hope to increase our loan book by four to five times this year,” Bhosale said. The size of total outstanding loans in the education sector in India is about Rs 43,300 crore, he said, with the sector growing by Rs 7,500-8,000 crore every year. Public sector banks dominate the segment. According to him, the segment’s growth is being driven both by students who enroll in higher education in India and also those who fly abroad for studies.

Education loan provider Credila Financial Services got fresh cash infusion from Housing Development Finance Corporation (HDFC) in the form of equity during the June quarter, which raised the latter’s stake in the company to 74.7 per cent from 62 per cent earlier.

HDFC acquired the additional shares from promoters Anil Bohora and Ajay Bohora. The mortgage lender would be keen to invest more funds and increase its stake in the company further as and when there is credit requirement, Credila chief operating officer Prashant Bhosale said.

With a growing number of students seeking education loans, Credila hopes to grow its loans portfolio to about Rs 750 crore by the end of this financial year.

Credila started operations in March 2008 and in late 2009, HDFC picked up 41 per cent stake in the company from investor Merrill Lynch for Rs 10 crore. The promoters held the remaining stake.

For the year 2010-11, Credila had an outstanding loan of Rs 153.51 crore and clocked net loss of Rs 11.25 crore. During the year, Credila obtained two credit lines from Syndicate Bank for about Rs 250 crore towards credit advancement for business.

“There are about 13-15 million students enrolled in India for higher education and at least 150,000 students who have flown abroad for studies. It presents a large opportunity for exclusive education loans players like us. Considering our small base, we hope to increase our loan book by four to five times this year,” Bhosale said.

The size of total outstanding loans in the education sector in India is about Rs 43,300 crore, he said, with the sector growing by Rs 7,500-8,000 crore every year. Public sector banks dominate the segment.

According to him, the segment’s growth is being driven both by students who enroll in higher education in India and also those who fly abroad for studies.