Behind Credila's success on education loan turf

Education finance is a complex and dynamic sector. There are too many variables - the course, the calibre of students, the universities, and the job prospects once the course is over

Hong Kong-headquartered BPEA EQT is acquiring HDFC Credila Financial Services Ltd, owned by Housing Development Finance Corporation Ltd (HDFC), for Rs 9,060 crore. This pegs HDFC Credila’s valuation at Rs 10,350 crore.

HDFC had to sell its education loan arm on the Reserve Bank of India’s insistence. It is one of the preconditions for approving the merger of HDFC with HDFC Bank Ltd. Indeed, HDFC could have continued to own it for the next two years, but in that case, HDFC Credila would not have been allowed to take on new customers.

There were many suitors for HDFC Credila, including