First Time In India: Education Loan Approval Before Admission For Students Going To The Usa

Credila Financial Services, an HDFC Ltd. Venture, is aThe Chicken-Egg Syndrome
specialized education loan lender. Credila announces aIndian Students that plan on obtaining an education
special benefit to the students who plans to pursueloan to fund their US studies face a typical
higher studies in the USA. Credila will, underwrite the“Chicken-Egg” syndrome every year: The US
education loan application file and issue education loanUniversity requires proof of assured funds to confirm
Approval letters to the credit- worthy students eventhe admission and release the I20; Indian banks do
before their admission to the US Universities.not Approval or authorize education loans until the
“Credila’s education loan approval beforestudent has confirmed admission and received the
admission to the USA is the first ever in India!”,I20. So what comes first—the I20 or the bank
said Prashant A. Bhonsle, Country Head of Credilaloan authorization? Chicken or Egg?
Financial Services. He continued to say, “UnlessThis limitation of Indian Banks put a severe damper
students demonstrate the sources of funds, the USon several qualified students that plan on obtaining
Universities don’t give I-20 to the students. Withthe I20 and funding their American education via
Credila’s education loan approval letters,loans. Unfortunately some students, out of sheer
thousands of creditworthy students from India, now,desperation, resort to unethical measures to forge
will be able to fulfill their dreams of higher education insuch documentation which makes things worse
the USA”.overall. Mr. Richard Yam, Foreign Student Advisor at
The Catch-22 Dilemma of US Bound Indian Students:the University of Massachusetts, Amherst notes
There are severe restrictions that are based on The“We see a lot of loan approval letters that
US Federal Immigration laws and policies on fundsprospective students from all over the world send to
that an Indian student can receive at U.S. universities.us to document proof of funds. [But] I do not think I
Matter of fact, universities will not confirm admissionhave seen anything [similar] from India.” This is
unless students can demonstrate their ability to bearechoed by Mr. Hrayr Tamzarian, Asst. Dean of
the cost of an American Education.International Admissions at Smith College, a highly
American Education and the I20selective private undergraduate college near
An US University can conditionally admit the studentBoston—“We normally accept loan letters [for
for a particular course based on various parameters,I20 sponsorship] as we are very expensive and
ranging from Standardized Test Scores (GRE, GMAT,understand that the student and family may not
etc) to Leadership Qualities. However, it does nothave full funding proof and may take student loans
release the official document confirming ato pay the balance fee…if the family funds plus the
students’ admission until and unless the studentloan add up to the required amount, then we can
is able to demonstrate financial ability to pay for theissue the I20.”
first year of the course and continued funds toCredila’s Unique Solution for students applying for
support the remaining years of education.studies in the USA
This official document of admission, also called theOne of the objectives of a recent and exciting
Form I20, is in fact a legal document tied to USdevelopment relating to educational loans in India aims
Immigration Services. The I20 is not only the onlyat solving this “Catch-22” situation
proof of secured admission but also forms the basisjeopardizing the Indian student community.
of that student’s US student visa claim andCredila Financial Services, is currently India’s first
attempt to enter the US for education. In a nutshell,and only fully-dedicated education loan provider.
if you don’t have an I20, you don’t go toCredila has entered into key partnerships with various
the US for education.organizations and educational institutes around the
Obtaining the I20globe to better serve the Indian student community.
Demonstrating financial ability can be tricky, especiallyCredila Financial Services is an HDFC Ltd. venture.
because only a few forms of documentary evidenceHDFC Ltd. is a strategic investor in Credila. Over
are accepted by the US University. A typical Indian40,000 students and parents have applied to Credila
student has limited options - receive funding from thefor education loan in the past few months. So far
university in form of scholarships, waivers, etc thatCredila has funded students for their studies in
are extremely difficult to secure OR document familyUniversities such as Columbia Univ., Cornell Univ,
funds OR obtain an education loan. “Credila loanPurdue Univ., Carnegie Mellon, Oxford etc.
approval letter was one of the important financialCredila is offering Education Loan Approval letter to
docs which I was holding to get I20”, said Surajcredit worthy students even before they get any
T., studying in SUNY at Buffalo, USA. Anotherconfirmed admission from the USA. Credila does not
student Ajin N. who obtained education loan frommandate “Confirmed Admission” to process
Credila and studying in University of Illinois at Chicago,or grant education loan offers and Approvals. So a
USA said, “Credila gave me the liquidity to gostudent can apply and receive a loan approval letter
ahead with the fees payment.  So the embassyfrom Credila even before being admitted to the
was happy with loan approval letter and the way ofcourse of his/her choice. This may also help the
funding for my course”.student to secure admission to better courses.