The education loan wing of HDFC, Credila Financial Services expects its loan book to grow 2.5 times in this fiscal.

HDFC has a 51% stake in Credila. Credila hopes to leverage from the wide distribution network and large customer base of HDFC Bank.

Credila Country Head Prashant Bhonsle said: "We have so far disbursed over Rs 40 crore and plan to reach Rs 100 crore by March 2011. HDFC can help us scale up quickly. Along with its brand equity, we can leverage its distribution structure and network".

"We can access its (HDFC's) existing customers and database. It will not only help us expand but also bring down the cost of funds," he said.

Credila also has line of credit from Punjab National Bank (PNB).

Credila mainly lends to education sector currently. Bhonsle says, "This is an asset class in India which has not been focused on as a separate venture. While PSBs have been offering student loan services, they have been selling it as part of the product portfolio they offer."