Quality education is a must for a complete and successful life. For many, it is equivalent to graduating from a top institution. The cost of education is however increasing rapidly. In fact, the cost of studying at reputed institutions is already quite high. Keeping this in mind, parents, who want to provide their children with the best possible education, invest their money in mutual funds, fixed deposits, unit-linked insurance plans, etc., for the long term.
But despite all this, one may still encounter a shortage of funds. An education loan, therefore, plays a vital role in such a scenario by helping to bridge the gap between the shortfall and the required amount. But less than 3% students, mostly belonging to middle-income families in India avail of education loans, against 85% in the UK, 77% the US and 70% in Germany and France, according to a study.
The study also highlights, that though there are many schemes for providing financial aid to poor students, however the amount given is very low and procedure to avail the facility is very cumbersome. That is why the percentage for education loan seekers is extremely low. Moreover, Education Loan is the second largest asset class in the USA, with over $ 1.2 Trillion worth of total student loans outstanding. Despite India’s population being four times that of the USA, all lenders put together, the total Education Loan portfolio outstanding is just about $12 Billion.
Thus with an aim to pioneer the private education loan industry in India, Ajay Bohora & Anil Bohora launched India’s First Dedicated Education Loan Company, Credila, which focuses exclusively on funding students for their higher education in India and overseas. What HDFC Ltd. is for Home Loans, Credila is for Education Loans.
Ajay Bohora is the Co-Founder & MD of HDFC Credila Financial Services, an HDFC Ltd. Company. He has earned Bachelor of Engineering from VJTI, Bombay University and MBA from Hofstra University, New York.
He started his career with Tata Exports Ltd. and then went to New York to pursue his MBA. After that, he worked in the field of Finance at various positions for six years at MetLife in its New York offices. After 8 years in the USA, he returned to India, to start a joint venture in partnership with a USA Company.
With a track record of success, in 2006, along with his brother Anil, he founded Credila, which provides Education Loans to students for their higher studies in India and abroad. While he was pursuing this career, due to his immense passion for Education, he co-founded New Era English School in Nasik, along with his family. New Era English School has been recognized by The Week Magazine as one of the “Top 10 Most Innovative Schools in India”.
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