Venkata R. shares his experience at Colorado State University
Q :- Please tell us about which course is you doing and why did you choose that course?
A :- I chose MS in Biochemistry because I’m interested in the field of proteomics.
Q :- Why did you choose the USA for higher education?
A :- USA has one of the best education systems in the world and has a very active research environment.
Q :- How is Colorado State University different than any other USA University based on whatever you have heard from your friends about
A :- It is one of the best student friendly place and has the best infrastructure.
Q :- Are you happy with your decision?
A :- Yes I’m glad I came to this place.
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- Be prepared for an academic shock as the way they teach here is contrastingly different.
Q :- Other than academics, what else did you learn from the country USA ?
A :- Here the people are very friendly and always ready to help you.
Q :- How are the studies in the USA different than the studies in India ?
A :- Here the stress is on practicality and not on theory
Q :- Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- I think it is a personal choice, but if you have a option to study in USA go for it. You literally learn how to live apart from academics.
Q :- What’s your advice to parents of aspiring students?
A :- The expenses involved are very high initially and might be daunting but its worth the investment.
Q :- Key things to remember for parents and students while planning for the studies in the USA
A :- Choose the university very wisely, as your degree from that place will determine the
future of your career
Q :- What are you future plans?
A :- I plan to go for a job here gain some experience and come back to India
Q :- How did you fund your higher education?
A :- I am using Credila education loan to cover my tuition fees and part time job to cover
my living expenses
Q :- Why did you choose Credila?
A :- They process the loan quickly and also give it an attractive rate of interest when compared to nationalized banks.
Monday, January 10, 2011
Friday, January 7, 2011
My Life at Southern Methodist University
Rohan P. shares his experience at Southern Methodist University, USA
Q :- Please tell us about which course is you doing and why did you choose that course?
A :- I am doing EE with Telecom specialization. I wanted an in-depth insight into the field of telecommunications.
Q :- Why did you choose the USA for higher education?
A :- Research and development is being undertaken extensively in the field of telecom in the USA and the course structure is better and more advanced here. The course gives us a chance to explore the subject deeply.
Q :- How is Southern Methodist University different than any other USA University based on whatever you have heard from your friends about
A :- Southern Methodist University is an amazing place not only for studying but also in terms of living experience. Everything here is well planned and the people are really friendly. Transportation is superb. Infrastructure is awesome and “Big”, because everything in Texas is “Big”.
Q :- Are you happy with your decision?
A :- Yes, I made the right choice.
Q :- Please share some of your experiences of the USA for aspiring students
A :- I am not sure about the other states in the USA, but Texas is a very safe place and the people here are genuine and friendly. Everyone here gives you a smile and says, HI, while you walk down the streets. I made lots of friends here and they are not only from the US and India but many other countries around the world. DFW Metroplex is a very beautiful place and there’s a lot to see.
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- Get proper funding. Be patient and calm. Plan your trip properly.
Q :- Other than academics, what else did you learn from the country USA ?
A :- Life is stable in the US. People don’t worry too much and hence are happy. Everything is well planned here and people care about their surroundings. Extracurricular activities are encouraged and there’s a lot to do on-campus and off-campus.
Q :- How are the studies in the USA different than the studies in India ?
A :- Classes are pretty amazing. Less number of students in a class makes it an interesting and interactive learning experience. Tests, homework, presentations and final exam are all taken into account to determine your grade. So, one has to study hard and understand the basic concepts beforehand.
Q :- Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- Well that depends on what your goals are. I can surely tell you that it is worth the experience.
Q :- What’s your advice to parents of aspiring students?
A :-Parents need not worry. Plan ahead of your time and ask your children to set goals beforehand. Because getting a degree for the namesake is not worth the money you invest in it. Funding is just a small hurdle which can be easily tackled.
Q :- Key things to remember for parents and students while planning for the studies in the USA
A :- Choose the right university for your course based on your GRE/TOEFL/SAT scores, academic record, interest, University rankings and student experiences (“all that glitters is not gold”).
1] Plan your budget
2] Meet your admission deadlines
3] Apply for VISA early
4] Book your flights early
5] Stop worrying
Q :- What are you future plans?
A :- I have plan to work on telecom projects in developing countries to help setup wireless telecommunication networks as that is more economical for such countries as compared to wire-line telecommunication.
Q :- How did you fund your higher education?
A :- Self-funding and funding from Credila Financial Services
Q :- Why did you choose Credila?
A :- I choose Credila for two major benefits: less paperwork and collateral flexibility. It’s a breeze to get funding from Credila and their representatives are very supportive. Customer satisfaction is guaranteed at Credila. Second mortgage on HDFC property is an icing on the cake.Thank you, Credila.
Q :- Please tell us about which course is you doing and why did you choose that course?
A :- I am doing EE with Telecom specialization. I wanted an in-depth insight into the field of telecommunications.
Q :- Why did you choose the USA for higher education?
A :- Research and development is being undertaken extensively in the field of telecom in the USA and the course structure is better and more advanced here. The course gives us a chance to explore the subject deeply.
Q :- How is Southern Methodist University different than any other USA University based on whatever you have heard from your friends about
A :- Southern Methodist University is an amazing place not only for studying but also in terms of living experience. Everything here is well planned and the people are really friendly. Transportation is superb. Infrastructure is awesome and “Big”, because everything in Texas is “Big”.
Q :- Are you happy with your decision?
A :- Yes, I made the right choice.
Q :- Please share some of your experiences of the USA for aspiring students
A :- I am not sure about the other states in the USA, but Texas is a very safe place and the people here are genuine and friendly. Everyone here gives you a smile and says, HI, while you walk down the streets. I made lots of friends here and they are not only from the US and India but many other countries around the world. DFW Metroplex is a very beautiful place and there’s a lot to see.
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- Get proper funding. Be patient and calm. Plan your trip properly.
Q :- Other than academics, what else did you learn from the country USA ?
A :- Life is stable in the US. People don’t worry too much and hence are happy. Everything is well planned here and people care about their surroundings. Extracurricular activities are encouraged and there’s a lot to do on-campus and off-campus.
Q :- How are the studies in the USA different than the studies in India ?
A :- Classes are pretty amazing. Less number of students in a class makes it an interesting and interactive learning experience. Tests, homework, presentations and final exam are all taken into account to determine your grade. So, one has to study hard and understand the basic concepts beforehand.
Q :- Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- Well that depends on what your goals are. I can surely tell you that it is worth the experience.
Q :- What’s your advice to parents of aspiring students?
A :-Parents need not worry. Plan ahead of your time and ask your children to set goals beforehand. Because getting a degree for the namesake is not worth the money you invest in it. Funding is just a small hurdle which can be easily tackled.
Q :- Key things to remember for parents and students while planning for the studies in the USA
A :- Choose the right university for your course based on your GRE/TOEFL/SAT scores, academic record, interest, University rankings and student experiences (“all that glitters is not gold”).
1] Plan your budget
2] Meet your admission deadlines
3] Apply for VISA early
4] Book your flights early
5] Stop worrying
Q :- What are you future plans?
A :- I have plan to work on telecom projects in developing countries to help setup wireless telecommunication networks as that is more economical for such countries as compared to wire-line telecommunication.
Q :- How did you fund your higher education?
A :- Self-funding and funding from Credila Financial Services
Q :- Why did you choose Credila?
A :- I choose Credila for two major benefits: less paperwork and collateral flexibility. It’s a breeze to get funding from Credila and their representatives are very supportive. Customer satisfaction is guaranteed at Credila. Second mortgage on HDFC property is an icing on the cake.Thank you, Credila.
Thursday, December 30, 2010
My Life at The Pennsylvania State University
Chethan G. shares his experience at The Pennsylvania State University, USA
Q :- Please tell us about which course is you doing and why did you choose that course?
A :-Energy & Mineral Engineering, my background and my interest pulled me to it.
Q :- Why did you choose the USA for higher education?
A :- I had enough schools to select here.
Q :- How is Pennsylvania State University(THE) different than any other USA University based on whatever you have heard from your friends about
A :- One of the big ten school, biggest alumni in the world, more chances of getting jobs all around the world
Q :- Are you happy with your decision?
A :- Yes, definitely.
Q :- Please share some of your experiences of the USA for aspiring students
A :- Study here is different in many ways when compared with India. As many people in India think that US has better infrastructure than India, it is absolutely true in many cases. So come and utilize and get placed in a good position.
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- I think coming to USA is one big thing, but making a correct choice is what matters. I think selection of a better school is also critical before applying to any other university.
Q :- Other than academics, what else did you learn from the country USA ?
A :- Nothing much, regarding the people here, they are very helpful and nice
Q :- How are the studies in the USA different than the studies in India ?
A :- As I said earlier, infrastructure cannot be compared at all. Talking about Pennsylvania State University, some websites say that it is one of the top 10 Universities for engineering in the World. I can understand that by seeing the facilities here.
Q :- Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- I only agree this if you have a degree from a better university when compared to an institution in India. Coming to US and studying in some ABC college is not at all worthy.
Q :- What’s your advice to parents of aspiring students?
A :- Just close your eyes for 2 years, do not worry.
Q :- Key things to remember for parents and students while planning for the studies in the USA
A :- One of the major thing is getting a bank loan, and you have CREDILA.
Q :- Any other advice to students and parents?
A :- Make a correct decision in selecting the university.
Q :- What are you future plans?
A :- May be PhD
Q :- How did you fund your higher education?
A :- Maximum part from Credila Educational Loan.
Q :- Why did you choose Credila?
A :- I first came to know about Credila from VISU Intl Ltd. Later even though I applied myself to the universities, I approached Credila and found it much different from any other state bank, etc. Mr. Ashutosh P. was very helpful. I really have to thank him.
Q :- Please tell us about which course is you doing and why did you choose that course?
A :-Energy & Mineral Engineering, my background and my interest pulled me to it.
Q :- Why did you choose the USA for higher education?
A :- I had enough schools to select here.
Q :- How is Pennsylvania State University(THE) different than any other USA University based on whatever you have heard from your friends about
A :- One of the big ten school, biggest alumni in the world, more chances of getting jobs all around the world
Q :- Are you happy with your decision?
A :- Yes, definitely.
Q :- Please share some of your experiences of the USA for aspiring students
A :- Study here is different in many ways when compared with India. As many people in India think that US has better infrastructure than India, it is absolutely true in many cases. So come and utilize and get placed in a good position.
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- I think coming to USA is one big thing, but making a correct choice is what matters. I think selection of a better school is also critical before applying to any other university.
Q :- Other than academics, what else did you learn from the country USA ?
A :- Nothing much, regarding the people here, they are very helpful and nice
Q :- How are the studies in the USA different than the studies in India ?
A :- As I said earlier, infrastructure cannot be compared at all. Talking about Pennsylvania State University, some websites say that it is one of the top 10 Universities for engineering in the World. I can understand that by seeing the facilities here.
Q :- Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- I only agree this if you have a degree from a better university when compared to an institution in India. Coming to US and studying in some ABC college is not at all worthy.
Q :- What’s your advice to parents of aspiring students?
A :- Just close your eyes for 2 years, do not worry.
Q :- Key things to remember for parents and students while planning for the studies in the USA
A :- One of the major thing is getting a bank loan, and you have CREDILA.
Q :- Any other advice to students and parents?
A :- Make a correct decision in selecting the university.
Q :- What are you future plans?
A :- May be PhD
Q :- How did you fund your higher education?
A :- Maximum part from Credila Educational Loan.
Q :- Why did you choose Credila?
A :- I first came to know about Credila from VISU Intl Ltd. Later even though I applied myself to the universities, I approached Credila and found it much different from any other state bank, etc. Mr. Ashutosh P. was very helpful. I really have to thank him.
Tuesday, December 21, 2010
My Life at Northeastern University
Shoeb M. shares his experience at Northeastern University, USA
Q :- Please tell us about which course is you doing and why did you choose that course?
A :- Computer science, my background and my interest pulled me to it.
Q :- Why did you choose the USA for higher education?
A :- I had a lot of choices here.
Q :- How is Northeastern University different than any other USA University
based on whatever you have heard from your friends about
A :-It's in Boston. Very nice curriculum and co-op jobs.
Q :- Are you happy with your decision?
A :- Yes
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- Study hard before you come here. Life will be easy.
Q :- Other than academics, what else did you learn from the country USA ?
A :- People are co-operative and friendly. They believe in what you say. Thats why they are so advanced.
Q :- How are the studies in the USA different than the studies in India ?
A :- PROFFESSORS! and RESEARCHES are a class apart.
Q :-Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- Definately
Q :- What’s your advice to parents of aspiring students?
A :- Dont worry.
Q :- Key things to remember for parents and students while planning for the studies in the USA
A :-You need CREDILA.
Q :- Any other advice to students and parents?
A :- Learn cooking and teach cooking.
Q :- What are you future plans?
A :- Job or research
Q :- How did you fund your higher education?
A :- Credila Education Loan
Q :- Why did you choose Credila?
A :- Nice plans and Mr Mahesh M was helpful.
Q :- Please tell us about which course is you doing and why did you choose that course?
A :- Computer science, my background and my interest pulled me to it.
Q :- Why did you choose the USA for higher education?
A :- I had a lot of choices here.
Q :- How is Northeastern University different than any other USA University
based on whatever you have heard from your friends about
A :-It's in Boston. Very nice curriculum and co-op jobs.
Q :- Are you happy with your decision?
A :- Yes
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- Study hard before you come here. Life will be easy.
Q :- Other than academics, what else did you learn from the country USA ?
A :- People are co-operative and friendly. They believe in what you say. Thats why they are so advanced.
Q :- How are the studies in the USA different than the studies in India ?
A :- PROFFESSORS! and RESEARCHES are a class apart.
Q :-Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- Definately
Q :- What’s your advice to parents of aspiring students?
A :- Dont worry.
Q :- Key things to remember for parents and students while planning for the studies in the USA
A :-You need CREDILA.
Q :- Any other advice to students and parents?
A :- Learn cooking and teach cooking.
Q :- What are you future plans?
A :- Job or research
Q :- How did you fund your higher education?
A :- Credila Education Loan
Q :- Why did you choose Credila?
A :- Nice plans and Mr Mahesh M was helpful.
Tuesday, December 14, 2010
We give funds up to 100% for students who can’t afford to pay margin fees, on merit
Prashant Bhonsle's interview conducted by Mr. Alekh Angre of Moneylife
Credila Financial Services, which specialises in education loans, says it has been successful in particularly helping students who are otherwise deprived of a good education due to their poor economic condition
In an interview to Moneylife, Prashant Bhonsle, country head of Credila Financial Services, explained various aspects of education loans in India, and elaborated how Credila is working to help students and universities. He discussed the criteria for sanctioning loans, interest rates, credit rating of students and co-borrowers, rating of universities and so on. Mr Bhonsle also answered questions about the shortage of basic education and facilities. Following are excerpts from the interview.
Moneylife (ML): How different is Credila from banks and other financial institutions, whether they are in the public or private sector? What are your unique features?
Prashant Bhonsle (PB): We have innovative products and services. Many lenders prefer giving loans to students applying at institutes and universities recognised by National Assessment and Accreditation Council (NAAC) or some other accreditation agency. Seeing the growth in the number of private institutes, we are also providing loans to such students. We take into consideration factors such as the quality of education, employment potential, and so on, when sanctioning loans. There is flexibility in the collateral guarantee. We provide services for legal verification of collateral documents, whereas banks ask students to do that on their own. Banks insist on a confirmation of admission and universities ask for a proper guarantee that finance will be secured to pay the fees. Here the student is in a catch-22 situation. At Credila, we give the student the sanction letter based on his documents and the institute he has applied to. Once admission is completed, the loan is disbursed. We provide loans of up to 20 lakhs. We fund students even up to 100% of their fees for those who can't afford to pay margin fees, based on merit. Finally, we even consider relatives, cousins as co-borrowers (other than parents), which is generally avoided by banks. And we don't have hidden charges.
ML: How many students have availed of education loans from Credila, for higher education within India as well as to study abroad? Has there been an increase in loan disbursements?
PB: There has been a big increase in the number of students applying for education loans in both segments-for those seeking to study in India and at foreign universities. The cost of education is rising and these days students want to be independent in funding their education, so many of them apply for loans. Another reason is the incentive on loans-students can claim a tax benefit on the interest paid. We saw around 500 students applying on each day during the peak season. In the last study we did, we recorded an average one student applying every minute at Credila.
ML: Credila offers customised loans for students and co-branded loans to academic institutes. Can you explain these products?
PB: The customised loan programme, as the name suggests, is structured based on the institute and the course, or the individual student. Here we evaluate factors like the student's and co-borrower's credit history, fees schedule and repayment capabilities holistically, after which the loan amount is decided. A co-branded loan is basically using the Credila tag together with the particular university or institute. Suppose a new course is launched by the university, many of the banks may not sanction loans to the students applying for this course. But Credila partners with the university to become an exclusive loan partner and provide students with finance for the course.
ML: As per the information on your website, there is a borrower and co-borrower's underwriting criteria as part of the eligibility for a loan. Please explain the criteria.
PB: Primarily it is the occupation profile of the co-borrower, which in most cases are parents. The credit history of the co-borrower forms a major pillar in sanctioning loans. We have tie up with credit bureaus to evaluate credit history. But we do have provision for deviation if the student is highly meritorious.
ML: Credila has an exclusive credit scoring model for student loans. Is the score given in a particular number or in percentage terms? What is the range for high and low scores? Does the credit score of a student influence the amount of loan he will get?
PB: In 2005-06, when we launched our service, we conducted research to understand the domain of the education loan sector in India. A lot of data pertaining to the sector was studied. We partnered with Fair Isaac Corporation to give credit scores for education loans, based on the data collected by us. It is a complex algorithm of various factors such as the quality of the student, the institute, the type of course, the quality of the collateral, credit history of co-borrowers, and so on. We also give weightage to the merit of a student. The score depends on each individual student and there is no particular range.
ML: How will a credit score given to universities based on their programme benefit them?
PB: This is a ranking which is given to the university. Many times, universities lack in talented students as meritorious ones are financially weak. When we co-brand with a university, we become a platform for the student applying at the university and the loan is provided to him/her there. This way the university gets quality of students and vice versa.
ML: Credila offers partner programmes for foreign universities which allow them to provide Credila Financial Services as a student loan provider to fund Indian students entering Indian Universities and Indian students entering US universities. Is this limited to universities in India and the US?
PB: This is not limited to American universities. We have funded loans for students applying at universities across the globe. Many students have been enabled loans to study at campuses in New Zealand, Germany, France and other countries.
ML: How many universities-Indian and foreign have you partnered with? What has been the overall response from universities and students who opted for a loan from you?
PB: Many universities from both India and abroad have partnered with us. The response has been good and encouraging from both students and universities. Students who have benefited from the loan have recommend others to apply to Credila. Universities see it as a value-addition service. Insead University in France has recommended us on their website for loan services for students.
ML: What is the current rate of interest and how is this calculated? Does Credila have a universal interest rate for all, or is the rate calculated depending on the university? For instance, State Bank of India charges special interest rate for students of ISB Hyderabad and it has a different rate for students of other institutions.
PB: We have both services. As I said earlier, various factors are taken into account for customisation of loans and interest rate at the individual student level. The rate of interest can vary depending on the institute, the student's academic achievement, and so on. We only provide loan on floating interest. We too provide special interest rates to certain institutes. For students applying from ISB Hyderabad we have provided loans at a rate of 9.75%. There is a special rate for universities like Insead University.
ML: Azim Premji recently donated around Rs8,846 crore as a gift towards his foundation, which promotes education and related work. Do you think this trend of big financial houses investing in the education sector will grow?
PB: Personally, I think it will be beneficial. The demographic deviation of India, as suggested by policymakers, corporate, states that education will facilitate the workforce. The scope for this sector is growing.
ML: The cost of private education is spiralling day by day. Will corporate investment in the sector (as it is happening now), make it more costly, or is it the other way around? Also, is it possible to opt for a public-private partnership, given that the large population is dependent on the government for even a basic education?
PB: Currently there is a lot of positive environment for the education sector in India. The government is taking steps which are conducive for the sector to grow. The cost of education is definitely increasing, but the quality is also increasing. In this situation a better enabler should be provided, which can provide financial backing to students for achieving quality education. Public-private partnership is good and I see it growing in the right direction.
ML: Mahindra & Mahindra managing director Anand Mahindra gave $10 million to Harvard University and Ratan Tata's Tata group gave $50 million to Harvard Business School. At the same time there are many people in India who cannot afford even a basic primary education, usually because of the lack of finances and facilities. Do you think there is a need to give more attention to basic education and provide funds to make it affordable to everyone?
PB: Basic education should be given more emphasis. The current five-year plan, that is the 11th plan, is making positive changes in the area of primary education. The incentive along with educational programmes like the mid-day meal programme, and so on, have helped improve the attendance level. A better enabler who can provide loans to students will contribute to making education more affordable. This is currently going in a positive direction.
ML: As on 31 March 2010, non-performing assets in the education portfolio of public sector banks had increased and now they are putting certain mechanisms in place to check delinquencies. How does Credila track students in case of default or delay in re-payment?
PB: We constantly communicate with students during the academic tenure of the student who has been granted a loan. We generally ask for 3-4 references, apart from the borrowers. Again there is constant engagement with all the references. As of now, for the students going to the US, we have tied up with some government agencies there which help us track a particular student. But since we only specialise in students' loans, we undertake thorough research, so we have the upper hand to track the student in case of any default.
ML: There has been talk that the government's UID (unique identity) project will help trace borrowers. Also, banks could seek updated data from credit bureaus to help overcome these defaults. Do you plan to tie up with any of them?
PB: We have partnered with Credit Information Bureau (India) to evaluate credit history while screening the application. There has been cases were loans have been rejected because of credit history. But we don't solely depend on credit histories, but there are various factors (as I had explained earlier) that play an important part. As regards the UID project, we would want to partner with them.
ML: When it comes to education loans, there is a lot of documentation hassle, which is the biggest hurdle for students who are opting for education abroad. How can this be made more user-friendly for student borrowers?
PB: Customer education is the most important. Every aspect of education loan portfolio should be explained. At Credila we perform KYC (Know your customer) as per RBI guidelines. Most banks don't provide education on the student loans mainly because this is one of the services provided by them also it is seasonal in nature. We make parents and students understand that opting loan will not only give them tax benefit but also build credit history.
ML: There is a lot of confusion among people regarding education loans and the processes. How do people seek guidance on this?
PB: I think there has to be some onus on the borrowers to undertake research. Students should start their preparation, especially financial preparation, much earlier. A lot of information about banks is available. An early start will make things easier.
ML: Given the fact that there is an increase in the number of students opting for higher education, the number of education loan-seekers has also increased. What is Credila's roadmap for the year ahead?
PB: We are aiming at multi-fold growth. We want to scale up the loan disbursements, for which we are expanding our operations, workforce and locations.
ML: What are the major challenges Credila faces in verifying applications, disbursing loans and recovery?
PB: Our operational capacity is very efficient, because of which there is hardly any challenge in verifying, disbursing, or even recovering loans. Our main challenge is to reach out to a larger number of people. We are expanding our operations in phases. Our biggest challenge is the cost of funds. Being a non-banking financial company the costs are higher.
Credila Financial Services, which specialises in education loans, says it has been successful in particularly helping students who are otherwise deprived of a good education due to their poor economic condition
In an interview to Moneylife, Prashant Bhonsle, country head of Credila Financial Services, explained various aspects of education loans in India, and elaborated how Credila is working to help students and universities. He discussed the criteria for sanctioning loans, interest rates, credit rating of students and co-borrowers, rating of universities and so on. Mr Bhonsle also answered questions about the shortage of basic education and facilities. Following are excerpts from the interview.
Moneylife (ML): How different is Credila from banks and other financial institutions, whether they are in the public or private sector? What are your unique features?
Prashant Bhonsle (PB): We have innovative products and services. Many lenders prefer giving loans to students applying at institutes and universities recognised by National Assessment and Accreditation Council (NAAC) or some other accreditation agency. Seeing the growth in the number of private institutes, we are also providing loans to such students. We take into consideration factors such as the quality of education, employment potential, and so on, when sanctioning loans. There is flexibility in the collateral guarantee. We provide services for legal verification of collateral documents, whereas banks ask students to do that on their own. Banks insist on a confirmation of admission and universities ask for a proper guarantee that finance will be secured to pay the fees. Here the student is in a catch-22 situation. At Credila, we give the student the sanction letter based on his documents and the institute he has applied to. Once admission is completed, the loan is disbursed. We provide loans of up to 20 lakhs. We fund students even up to 100% of their fees for those who can't afford to pay margin fees, based on merit. Finally, we even consider relatives, cousins as co-borrowers (other than parents), which is generally avoided by banks. And we don't have hidden charges.
ML: How many students have availed of education loans from Credila, for higher education within India as well as to study abroad? Has there been an increase in loan disbursements?
PB: There has been a big increase in the number of students applying for education loans in both segments-for those seeking to study in India and at foreign universities. The cost of education is rising and these days students want to be independent in funding their education, so many of them apply for loans. Another reason is the incentive on loans-students can claim a tax benefit on the interest paid. We saw around 500 students applying on each day during the peak season. In the last study we did, we recorded an average one student applying every minute at Credila.
ML: Credila offers customised loans for students and co-branded loans to academic institutes. Can you explain these products?
PB: The customised loan programme, as the name suggests, is structured based on the institute and the course, or the individual student. Here we evaluate factors like the student's and co-borrower's credit history, fees schedule and repayment capabilities holistically, after which the loan amount is decided. A co-branded loan is basically using the Credila tag together with the particular university or institute. Suppose a new course is launched by the university, many of the banks may not sanction loans to the students applying for this course. But Credila partners with the university to become an exclusive loan partner and provide students with finance for the course.
ML: As per the information on your website, there is a borrower and co-borrower's underwriting criteria as part of the eligibility for a loan. Please explain the criteria.
PB: Primarily it is the occupation profile of the co-borrower, which in most cases are parents. The credit history of the co-borrower forms a major pillar in sanctioning loans. We have tie up with credit bureaus to evaluate credit history. But we do have provision for deviation if the student is highly meritorious.
ML: Credila has an exclusive credit scoring model for student loans. Is the score given in a particular number or in percentage terms? What is the range for high and low scores? Does the credit score of a student influence the amount of loan he will get?
PB: In 2005-06, when we launched our service, we conducted research to understand the domain of the education loan sector in India. A lot of data pertaining to the sector was studied. We partnered with Fair Isaac Corporation to give credit scores for education loans, based on the data collected by us. It is a complex algorithm of various factors such as the quality of the student, the institute, the type of course, the quality of the collateral, credit history of co-borrowers, and so on. We also give weightage to the merit of a student. The score depends on each individual student and there is no particular range.
ML: How will a credit score given to universities based on their programme benefit them?
PB: This is a ranking which is given to the university. Many times, universities lack in talented students as meritorious ones are financially weak. When we co-brand with a university, we become a platform for the student applying at the university and the loan is provided to him/her there. This way the university gets quality of students and vice versa.
ML: Credila offers partner programmes for foreign universities which allow them to provide Credila Financial Services as a student loan provider to fund Indian students entering Indian Universities and Indian students entering US universities. Is this limited to universities in India and the US?
PB: This is not limited to American universities. We have funded loans for students applying at universities across the globe. Many students have been enabled loans to study at campuses in New Zealand, Germany, France and other countries.
ML: How many universities-Indian and foreign have you partnered with? What has been the overall response from universities and students who opted for a loan from you?
PB: Many universities from both India and abroad have partnered with us. The response has been good and encouraging from both students and universities. Students who have benefited from the loan have recommend others to apply to Credila. Universities see it as a value-addition service. Insead University in France has recommended us on their website for loan services for students.
ML: What is the current rate of interest and how is this calculated? Does Credila have a universal interest rate for all, or is the rate calculated depending on the university? For instance, State Bank of India charges special interest rate for students of ISB Hyderabad and it has a different rate for students of other institutions.
PB: We have both services. As I said earlier, various factors are taken into account for customisation of loans and interest rate at the individual student level. The rate of interest can vary depending on the institute, the student's academic achievement, and so on. We only provide loan on floating interest. We too provide special interest rates to certain institutes. For students applying from ISB Hyderabad we have provided loans at a rate of 9.75%. There is a special rate for universities like Insead University.
ML: Azim Premji recently donated around Rs8,846 crore as a gift towards his foundation, which promotes education and related work. Do you think this trend of big financial houses investing in the education sector will grow?
PB: Personally, I think it will be beneficial. The demographic deviation of India, as suggested by policymakers, corporate, states that education will facilitate the workforce. The scope for this sector is growing.
ML: The cost of private education is spiralling day by day. Will corporate investment in the sector (as it is happening now), make it more costly, or is it the other way around? Also, is it possible to opt for a public-private partnership, given that the large population is dependent on the government for even a basic education?
PB: Currently there is a lot of positive environment for the education sector in India. The government is taking steps which are conducive for the sector to grow. The cost of education is definitely increasing, but the quality is also increasing. In this situation a better enabler should be provided, which can provide financial backing to students for achieving quality education. Public-private partnership is good and I see it growing in the right direction.
ML: Mahindra & Mahindra managing director Anand Mahindra gave $10 million to Harvard University and Ratan Tata's Tata group gave $50 million to Harvard Business School. At the same time there are many people in India who cannot afford even a basic primary education, usually because of the lack of finances and facilities. Do you think there is a need to give more attention to basic education and provide funds to make it affordable to everyone?
PB: Basic education should be given more emphasis. The current five-year plan, that is the 11th plan, is making positive changes in the area of primary education. The incentive along with educational programmes like the mid-day meal programme, and so on, have helped improve the attendance level. A better enabler who can provide loans to students will contribute to making education more affordable. This is currently going in a positive direction.
ML: As on 31 March 2010, non-performing assets in the education portfolio of public sector banks had increased and now they are putting certain mechanisms in place to check delinquencies. How does Credila track students in case of default or delay in re-payment?
PB: We constantly communicate with students during the academic tenure of the student who has been granted a loan. We generally ask for 3-4 references, apart from the borrowers. Again there is constant engagement with all the references. As of now, for the students going to the US, we have tied up with some government agencies there which help us track a particular student. But since we only specialise in students' loans, we undertake thorough research, so we have the upper hand to track the student in case of any default.
ML: There has been talk that the government's UID (unique identity) project will help trace borrowers. Also, banks could seek updated data from credit bureaus to help overcome these defaults. Do you plan to tie up with any of them?
PB: We have partnered with Credit Information Bureau (India) to evaluate credit history while screening the application. There has been cases were loans have been rejected because of credit history. But we don't solely depend on credit histories, but there are various factors (as I had explained earlier) that play an important part. As regards the UID project, we would want to partner with them.
ML: When it comes to education loans, there is a lot of documentation hassle, which is the biggest hurdle for students who are opting for education abroad. How can this be made more user-friendly for student borrowers?
PB: Customer education is the most important. Every aspect of education loan portfolio should be explained. At Credila we perform KYC (Know your customer) as per RBI guidelines. Most banks don't provide education on the student loans mainly because this is one of the services provided by them also it is seasonal in nature. We make parents and students understand that opting loan will not only give them tax benefit but also build credit history.
ML: There is a lot of confusion among people regarding education loans and the processes. How do people seek guidance on this?
PB: I think there has to be some onus on the borrowers to undertake research. Students should start their preparation, especially financial preparation, much earlier. A lot of information about banks is available. An early start will make things easier.
ML: Given the fact that there is an increase in the number of students opting for higher education, the number of education loan-seekers has also increased. What is Credila's roadmap for the year ahead?
PB: We are aiming at multi-fold growth. We want to scale up the loan disbursements, for which we are expanding our operations, workforce and locations.
ML: What are the major challenges Credila faces in verifying applications, disbursing loans and recovery?
PB: Our operational capacity is very efficient, because of which there is hardly any challenge in verifying, disbursing, or even recovering loans. Our main challenge is to reach out to a larger number of people. We are expanding our operations in phases. Our biggest challenge is the cost of funds. Being a non-banking financial company the costs are higher.
Sunday, December 12, 2010
My Life at Northern Illinois University
Priyanka V. Shares her experience while studying at University of Northern Illinois
Q :- Please tell us about which course is you doing and why did you choose that course?
A :- I am into Industrial and Systems Engineering department and I’ve taken up this course because the future prospects.
Q :- Why did you choose the USA for higher education?
A :- Because the quality of education offered at USA is very high than in any other country and also the advanced technology helps me to learn more.
Q :- How is Northern Illinois University different than any other USA University based on whatever you have heard from your friends about
A :- Northern Illinois University is good for Industrial engineering department and also the university has got funds, projects and also the research work which is being carried out is of my interest.
Q :- Are you happy with your decision?
A :- Yes, I am happy with my decision.
Q :- Please share some of your experiences of the USA for aspiring students
A :- All who wish to dream and achieve more, then can opt masters. If you have interest to pursue higher studies, then master’s is the best option.
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- One who wishes to pursue higher studies and dream high, this is the best option.
Q :- Other than academics, what else did you learn from the country USA ?
A :- Discipline, punctuality and value of time
Q :- How are the studies in the USA different than the studies in India ?
A :- Very organized, dedicated and effective. We get to learn a lot.
Q :- Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- Absolutely, for the people who wish to pursue higher studies. We earn more than what we spend.
Q :- What’s your advice to parents of aspiring students?
A :- Think in a broader way and let ur children achieve their dreams.
Q :- Key things to remember for parents and students while planning for the studies in the USA
A :- Get ready to face the system over here, as it is entirely different from India’s system. We have to get adjusted or else you will face problems.
Q :- What are you future plans?
A :- I wanna settle as Industrial and Systems engineer
Q :- How did you fund your higher education?
A :- Through Credila – An HDFC Ltd. Company
Q :- Why did you choose Credila?
A :- Because it does not look into unnecessary documents and the issual of loan amount is very fast. Also, the interest rate is almost similar to government banks.
Q :- Please tell us about which course is you doing and why did you choose that course?
A :- I am into Industrial and Systems Engineering department and I’ve taken up this course because the future prospects.
Q :- Why did you choose the USA for higher education?
A :- Because the quality of education offered at USA is very high than in any other country and also the advanced technology helps me to learn more.
Q :- How is Northern Illinois University different than any other USA University based on whatever you have heard from your friends about
A :- Northern Illinois University is good for Industrial engineering department and also the university has got funds, projects and also the research work which is being carried out is of my interest.
Q :- Are you happy with your decision?
A :- Yes, I am happy with my decision.
Q :- Please share some of your experiences of the USA for aspiring students
A :- All who wish to dream and achieve more, then can opt masters. If you have interest to pursue higher studies, then master’s is the best option.
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- One who wishes to pursue higher studies and dream high, this is the best option.
Q :- Other than academics, what else did you learn from the country USA ?
A :- Discipline, punctuality and value of time
Q :- How are the studies in the USA different than the studies in India ?
A :- Very organized, dedicated and effective. We get to learn a lot.
Q :- Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- Absolutely, for the people who wish to pursue higher studies. We earn more than what we spend.
Q :- What’s your advice to parents of aspiring students?
A :- Think in a broader way and let ur children achieve their dreams.
Q :- Key things to remember for parents and students while planning for the studies in the USA
A :- Get ready to face the system over here, as it is entirely different from India’s system. We have to get adjusted or else you will face problems.
Q :- What are you future plans?
A :- I wanna settle as Industrial and Systems engineer
Q :- How did you fund your higher education?
A :- Through Credila – An HDFC Ltd. Company
Q :- Why did you choose Credila?
A :- Because it does not look into unnecessary documents and the issual of loan amount is very fast. Also, the interest rate is almost similar to government banks.
Monday, November 8, 2010
My Life at University of Virginia
Prateeksha S. shares her experience at University of Virginia
Q :- You have been one of those highly respected lot of students who have been doing higher studies at University of Virginia . How does it feel to be at University of Virginia USA?
A :- Pretty good. Learning a lot. Developing a global outlook and professionalism.
Q :- Please tell us about which course is you doing and why did you choose that course?
A :- Chose Engineering Physics (MS) as I wanted to explore new interdisciplinary areas.
Q :- Why did you choose the USA for higher education?
A :- Wanted an education that would let me specialise and master in an area of study.
Q :- How is University of Virginia different than any other USA University based on whatever you have heard from your friends about?
A :- University of Virginia offers a flexible program, where you can involve in research in latest technologies and make a contribution.
Q :- Are you happy with your decision?
A :- Very much. It has certainly helped me gain knowledge in my field of study, develop problem solving capabilities for even problems which are not well-defined.
Q :- Where do you eat? Do you cook yourself?
A :- Often eat on campus and cook for myself.
Q :- Where do you live? On-campus or off-campus and why?
A :- Stay off-campus as it is cheaper.
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- Be prepared to work hard. It’s worth, if you make the best use of it.
Q :- Other than academics, what else did you learn from the country USA ?
A :- Respect all cultures. Be professional. Pay heed to advice. Seek advice. Seek help if you’re stuck at something. Do your homework.
Q :- How are the studies in the USA different than the studies in India ?
A :- In USA it is more professional, more rigorous, help is available (and one should seek it). People want to make an impact and really make it happen.
Q :- Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- Probably at this point of time it is. Provided one gets a job to pay off the loans. But India should be working on developing a good graduate education system.
Q :- What’s your advice to parents of aspiring students?
A :- Be supportive, encouraging, believe in your child and be there for them, keep in touch 1-2 times a week at least, enquire time and again whether your child is doing fine and don’t take for granted that everything’s going alright, plan ahead for possible situations. Teach your child how to cook and clean :)
Q :- What are you future plans?
A :- Gain employment in USA for atleast 1-2 years to obtain experience before coming back to India.
Q :- Why did you choose Credila?
A :- Not too much hassle, quick and professional.
Q :- You have been one of those highly respected lot of students who have been doing higher studies at University of Virginia . How does it feel to be at University of Virginia USA?
A :- Pretty good. Learning a lot. Developing a global outlook and professionalism.
Q :- Please tell us about which course is you doing and why did you choose that course?
A :- Chose Engineering Physics (MS) as I wanted to explore new interdisciplinary areas.
Q :- Why did you choose the USA for higher education?
A :- Wanted an education that would let me specialise and master in an area of study.
Q :- How is University of Virginia different than any other USA University based on whatever you have heard from your friends about?
A :- University of Virginia offers a flexible program, where you can involve in research in latest technologies and make a contribution.
Q :- Are you happy with your decision?
A :- Very much. It has certainly helped me gain knowledge in my field of study, develop problem solving capabilities for even problems which are not well-defined.
Q :- Where do you eat? Do you cook yourself?
A :- Often eat on campus and cook for myself.
Q :- Where do you live? On-campus or off-campus and why?
A :- Stay off-campus as it is cheaper.
Q :- What’s your advice to students who aspire to go to the USA for higher studies?
A :- Be prepared to work hard. It’s worth, if you make the best use of it.
Q :- Other than academics, what else did you learn from the country USA ?
A :- Respect all cultures. Be professional. Pay heed to advice. Seek advice. Seek help if you’re stuck at something. Do your homework.
Q :- How are the studies in the USA different than the studies in India ?
A :- In USA it is more professional, more rigorous, help is available (and one should seek it). People want to make an impact and really make it happen.
Q :- Is it worth spending so much money to get a degree from the USA as compared to similar degree in India with lower costs?
A :- Probably at this point of time it is. Provided one gets a job to pay off the loans. But India should be working on developing a good graduate education system.
Q :- What’s your advice to parents of aspiring students?
A :- Be supportive, encouraging, believe in your child and be there for them, keep in touch 1-2 times a week at least, enquire time and again whether your child is doing fine and don’t take for granted that everything’s going alright, plan ahead for possible situations. Teach your child how to cook and clean :)
Q :- What are you future plans?
A :- Gain employment in USA for atleast 1-2 years to obtain experience before coming back to India.
Q :- Why did you choose Credila?
A :- Not too much hassle, quick and professional.
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