We provide loans for schools up to Rs.100 crores or higher against existing school property. Our professional approach and online document boarding make the loan process seamless, even when applying from distant locations. This finance can be raised in any major city against the institution’s properties or any additional property offered to us.
We are a team of experienced professionals who access the client’s financial statement, credit history, and other documents and recommend the best possibilities to secure the transaction.
Key Features:
- Loan starts from Rs.1 crore to 100 crores or even higher
- The institution’s existing property works as collateral for this loan
- Loans are available in all major cities of India
- The easy onset of the process
- All digital onboarding of documents
- A moratorium period is provided
- Any additional collateral (other than the institute) can also be offered as security
- Some previous credit issues borrowers can also apply
Loan for School Construction
We provide loans for school construction. This loan can be utilized for constructing a new school or adding a new building block to the existing school. In the case of new school construction, a loan of up to 70 to 80% is provided of the total construction cost and the balance has to be invested by the promoter.
For the existing school’s requirement of constructing a new building, the loan amount depends upon their current balance sheet and can be 100% funded, if financials support the required loan amount.
Following are the benefits for schools by taking loans for Schools:
- Facility Improvements: Renovating outdated classrooms, labs, or auditoriums to enhance the learning environment.
- Tech Upgrades: Ensuring access to the latest educational technology, such as tablets, interactive whiteboards, and online learning platforms.
- New Building Construction: Construction of new buildings increases the school revenue and better facilities for students.
- Cash Flow Management: Schools may need working capital to cover short-term gaps in revenue, such as during summer months or in anticipation of delayed state funding.
- Purchasing a New School: As part of the expansion, purchasing existing schools that run under your management is the best tool for business growth.
- Refinancing Existing Loan: To refinance the existing loan at better commercials or simply require an enhancement on the previous loan by a takeover of the previous facility.
Eligibility Criteria to Apply for School Construction Loan
- The school must be registered under a Trust or Company
- Must have all valid approvals
- School strength of not less than 500 students
- School property itself can be offered as collateral
- Properties on the personal names can be also offered as collateral
- A business vintage of at least five years is required
Documentation Required
- School Profile
- Cost break-up
- In the case of a branded chain, an agreement is required
- Last three years’ balance sheets
- Bank statements for the last one year
- Registered deed
- KYC of Promoters
FAQs
A loan for a school building is provided for the construction of the building and other infrastructure of a school as well as for the working capital requirements. The Borrower can club the loan for school building construction with a loan for the running cost of a school.
Regional or state-level schools can get finance for multiple purposes, from constructing a school building to managing the running costs of the schools. In the case of starting a new school, a project report is required to be submitted along with income and KYC documents, and a maximum of 75% of the total can be financed. If the requirement is only working capital or renovation, then a 100% loan can be provided.
In school infrastructure loans, 100% of the amount applied can be provided, subject to the school’s financial eligibility according to current year revenue and security offered. The school Infrastructure loans can be utilized for the upgradation of technology, the development of new laboratories, the construction of auditoriums, and the development of sports facilities.
Private school construction financing means a finance facility for developing and constructing a private school that is not managed by the state or central government. Private schools managed by a trust or society are eligible for this loan, and the loan is granted for the construction of school buildings, the development of technological infrastructure, and hostel buildings that increase school revenues.
A tenor of five to ten years according to the past repayment is offered to the schools. Better the past loan repayments, the maximum is the tenor.
