Formerly known as Baring Private Equity Asia, BPEA EQT is set to buy HDFC Credila for $1.5 billion (INR 12,000 crore). Credila is the education loan entity of HDFC.
The aforementioned acquisition deal is in its final stages. This deal is likely to conclude in June 2023. This announcement precedes the merger between Housing Development Finance Corporation (HDFC) and HDFC Bank.
Other interested parties in this deal are Warburg Pincus, and ADIA (Abu Dhabi Investment Authority). The Government Of Singapore Investment Corporation (GIC) was also bidding for the deal. Other runners of this acquisition include TA Associates, Blackstone, CVC Capital, and Carlyle.
HDFC Credila
HDFC Credila is a leading non-banking financial company (NBFC) in India. It specialises in providing education loans to students pursuing higher education in India or abroad. Here are some key facts about HDFC Credila Education Loan:
Loan Eligibility
HDFC Credila offers education loans to Indian students enrolled in recognised universities abroad and in India. These loans are for various courses such as undergraduate, postgraduate, doctoral, and vocational programs.
Loan Amount
The student loan amount offered by HDFC Credila depends on factors such as the course, university, and country of study. Typically, students can avail of loans starting from INR 1 lakh up to INR 40 lakh or even higher. This loan amount depends on the program and other factors.
Collateral and Margin Money
HDFC Credila offers both secured and unsecured education loans. In the case of unsecured loans, no collateral or security is required. However, for higher loan amounts or certain programs, HDFC Credila may require collateral or a co-applicant. The margin money typically varies between 5% and 20%.
Interest Rates
The interest rates for HDFC Credila Education Loan are competitive and depend on factors such as the loan amount, repayment tenure, creditworthiness of the borrower, and market conditions. The interest rates are generally higher for unsecured loans compared to secured loans.
Repayment Options
HDFC Credila provides flexible repayment options for education loans. The repayment period can range from 5 to 15 years, depending on the loan amount and the borrower’s preference. Repayment can be done through equated monthly instalments (EMIs). Another option is through a customized repayment plan based on the borrower’s financial situation.
Tax Benefits
Under Section 80E of the Income Tax Act, borrowers can avail of tax benefits on the interest paid on education loans. HDFC Credila provides the necessary documents and certificates required to claim these benefits.
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