Avanse, the education loan arm of Dewan Housing Finance Ltd, expects an over two-fold rise in loan disbursement to Rs 800 crore during the current fiscal.
"Last financial year, we disbursed education loan to the tune of Rs 343 crore. We expect the disbursement to increase to Rs 800 crore by the end of the current fiscal," CEO of Avanse Education Loans Neeraj Saxena said.
In value terms, the demand for education loan for overseas education is 70 per cent of the book size while that of domestic market is about 30 per cent, he added.
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At the end of March 2016, the balance sheet size of the company, which posted profit last year, was Rs 530 crore.
International Finance Corporation (IFC), an arm of the World Bank, holds 20 per cent equity stake in Avanse.
Set up in 2013, Avanse disbursed close to 600 crore till March 31, 2016.
Avanse provides 100 per cent education finance to students applying for diverse streams ranging from Engineering, Management, Medicine to Science, Humanities, Law and also niche courses like music, dance, Big Data Analytics, animation, fashion, arts etc.
The company provides students the option to repay the loan through flexible repayment plans, with repayment tenure up to 10 years, he said.
The company has presence in metro eight cities, and also leverages the DHFL network for added reach and access, he said, adding, it has tie-up with 600 education institutions.
