We provide loans for school construction up to Rs.100 crores or higher against existing school property. Our professional approach and online boarding of documents 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 assess the client’s financial statement, credit history, and other documents and recommend the best possibilities to secure the transaction.
The following are the end uses of our school construction loans:
- Loan for Building Schools: We provide loans to build schools & their infrastructure. Construction of new buildings increases school revenue and offers better facilities for students. This loan can be used for building new schools as well as adding infrastructure to existing 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- Facility Improvements: Renovating outdated classrooms, labs, or auditoriums to enhance the learning environment.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.
- 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 School Loan: To refinance the existing loan at better terms or simply require an enhancement on the previous loan by a takeover of the previous facility.
key Features of School Construction Loans:
- Loan starts from Rs.1 crore to 100 crores or even higher
- The institution’s existing property works as collateral for this loan
- Loan available in all major cities of India
- 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
Eligibility Criteria to Apply for Loans for Schools
- 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 also be 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
- The last three years’ balance sheets
- Bank statements for the last year
- Registered deed
- KYC of Promoters
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Who can get the finance for schools?
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.
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How much loan can one get in the school infrastructure loan?
In school infrastructure loans, 100% of the amount applied for can be provided, subject to the school's financial eligibility according to the current year's 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.
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What is private school construction financing?
Private school construction financing means a financing 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.
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What is the tenor provided in the school loans?
A loan tenor of five to ten years, according to the past repayment, is offered to the schools. The better the past loan repayments, the longer the tenor.
