Housing Development Finance Corporation (HDFC) is planning to make full fledged entry into education loan business and is seeking approval from its board in this regard. It plans to start off with the education loan segment with an altogether different entity.

Speaking on the matter, Renu Karnad, MD, said that although talks are at naive stages, the underlying strategy is to come up with a subsidiary for the education loan venture. "We are looking at the entire spectrum from K to 12 (kindergarten to class XII) and skill building with the objective of making people more employable," she said.

She clarified that the move would entirely be a commercial activity and not a part of the corporate social responsibility (CSR) of the bank.

"We would target the same category of individuals whom we address in the home loan business the middle income group," she said.

"We would first look at places where it would be easier to fill up the schools," said Karnad.

"If there is a situation where there is a scope for public-private partnership with state governments, we do not even rule out state boards," she said.

The bank has already ventured into this segment via acquistion of Credila-a south-based company that specializes in education loans.