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Loan For Educational Institutions
Quality education demands a continuous flow of money to equip curious minds with the proper tools and accommodations to access high-end education. Therefore learning institutions should always be furnished with adequate facilities in the demand of the advanced era.
Business loans for new educational institutions allow the owner to use funds on purchasing land, construction of new buildings, expanding or improving infrastructure, providing quality education, meeting daily obligations, investing in the latest teaching technology, maintenance, amenities, growth, and other requirements and expectations of the boards, students, parents, or regulatory authorities.
A loan for educational institutions is given by banks, NBFCs, and other financial institutions to private institution owners for improving the quality of education experience in schools, colleges, universities, etc. In order to provide quality education, these institutions need to be updated with the latest infrastructure and facilities. This is where the need for a loan comes in.
By availing of a loan for educational institutions, owners of educational institutions can make the necessary changes and improve the quality of education for students.
Unique Points & Features
High LTV
Avail of loans for new educational institutions of up to 2 crore or more with Loanz360 financial partners at affordable and convenient interest rates with personalized deals and pre-approved options on the loan.
Doorstep service
We offer doorstep evaluation services to our customers upon request. You can now avoid commute costs and save time on travel.
Dedicated relationship manager
A dedicated manager with professional domain experience will be appointed to assist you through the documentation and loan process throughout the entirety of the procedure.
Zero collateral options
You can now avail of a loan for educational institutions without pledging collateral upon meeting eligibility criteria with a few lenders. There are several other alternatives for applicants, who can apply with a co-borrower or through the society/trust.
Overdraft facility
The Flexi loan facility on the loan for educational institutions allows the applicant to repay only over the utilized funds.
Online browsing experience
Get a complete online browsing experience at Loanz360. Maintain, manage, and retrieve funds from anywhere and anytime at your own discretion.
Types
Type By Security
Secured Loan: Secured loans are loans obtained against collateral or security pledged to access funds.Â
Unsecured Loan: Unsecured loans do not require collateral to avail of a loan depending on several key parameters such as loan amount, creditworthiness, etc.
Type By Repayment
Term Loan: A term loan is the entirety of the loan to be paid over the set intervals for the amount borrowed with interest in full.
Flexi Loan: Flexi loan unlike term loan has a cash limit. The borrower can withdraw any amount from the cash limit and may pay only for the amount used rather than the entirety of the available funds.
Eligibility Criteria
Type of Institution: Private LTD/Societies/Trusts/Recognised (By Central (or) State Board Of Education)/Unaided/Public LTD/Etc.
Type of Owner: Promoter/Trust/Association
Nationality: Resident of India
Income: The institution must have a regular source of income.
Tax: ITR should be legally documented for the institution.
Credit/CIBIL Score: 650 or higher (Preferably)
Collateral: Any (Valid & Documented)
Business Vintage: 2 – 3 years and above (Business should not be blacklisted)
Note: The eligibility criteria mentioned above are generic and may vary from lender to lender. Please reach out to us at Loanz360 for a personalized eligibility chart.
Documentation
Applicant/Co-Applicant Documents
KYC Documents: Passport/Voter ID/Aadhar/Driving License/PAN Card/Rental Agreement/Electricity Bill/Registered Lease Deed/Ration Card/Copy of Telephone Bill/Insurance Bond/Gas Book
Income Proof: Latest 2-year 26 AS form (If applicable)/Latest copy of ITR for 3 years/Latest 1-year current and savings bank account statements
Trust/Society Documents
KYC Documents: Updated list of members (C.A Certified List)/By-laws/PAN Card/Registration/Letterhead Profile
Income Proof: Latest 2-year copy of Income Tax Returns (ITR)/C. A certified Balance Sheet/Profit & Loss Statements/Form No. 3 CA & 3 CD in case of audited balance sheet/Latest 2-year 26 AS form (If applicable)/Copy of Latest VAT, GST, Sales Tax Documents/Latest 1-year current and savings bank account statements
Additional Requirements: Collateral Documents(If applicable)/Property documents(Sanctioned plan/complete property papers)/Duly filled application form/passport-sized photos
Note: Documents requested may vary from lender to lender. Contact Loanz360. Our dedicated relationship manager will understand your requirements and reach out to you with custom details.
Interest Rates
Interest rates on a loan for educational institutions are available subject to the collateral pledged, the funding required, documents submitted, creditworthiness, etc with capital support up to 80% of your expense value and interest rates between 15% to 27%.Â
The maximum loan amount on shares is up to 2 crore in funds with monthly or bi-weekly repayment schedules available. The nature of the loan is an overdraft or term. The Flexi loan option offers lenders an overdraft limit to utilize funds as they wish and repay only on the funds UTILIZED.Â
We are partnered with leading financiers such as IDFC, ISFC, HDFC, Growth Source, Avanse, Profectus, and more to bring you the best deals on your shares with a low or zero fee guarantee.
Note: Contact Loanz360 to discuss options. The interest rates may vary subject to conditions.
FAQ
Yes. Any educational institution that is registered as a trust or society, or a not-for-profit Section 25 Company under the Companies Act, 1956, would be eligible to receive loans from any bank if it qualifies under the MSMED Act.
The loan for educational institutions is provided for improving the quality of education experience in schools, colleges, universities, etc. It is also used for a variety of purposes such as buying new equipment, renovating buildings, and hiring new staff.
This loan is a great way for owners of private institutions to improve the quality of education their students receive.
The IFSC offers term loans with loan amounts that vary depending on whether the loan is secured or unsecured. The upper limit for unsecured loans is 15 lakh while that for secured loans is 2 crores. Most banks and NBFCs offer loans for education as well as for educational institutions.
The lender will verify all the necessary documents required and sanction the loan amount based on the requirement of the borrower, creditworthiness, trust/society, collateral pledged, and the borrower’s previous debts or relationship with the bank.
Yes and no. There are some banks levying charges on prepayments or foreclosures a nominal fee. However, under certain circumstances, you can avail of a loan with no fee. Contact Loanz360 to discuss options and explore deals.
Most banks ask for a co-applicant on loans for new educational institutions, who co-owns the property (institution) as a co-borrowers. However, loans for new educational institutions can also be applied through trust or society. Discuss your requirements with your assigned relationship manager to explore benefits.
Yes. Some banks allow the borrower to transfer liability under set conditions. Contact Loanz360 to know more.
On average repayment tenure on a loan for educational institutions lasts between 3 years to 6 years, subject to conditions.
The interest rates on the loan may vary depending on the repayment history of the borrower, cash inflow of the institution, loan sanctioned, tenure, collateral, and so on.
Yes. However, the loan for educational institutions is a loan for constructing an educational establishment, therefore to be used to build new infrastructure or classrooms.
The repayment modes may vary from bank to bank and lender to lender. However, the loan for educational institutions can be paid in EMIs using e-NACH/PDCs/Company Portal/Credit/Debit/Etc. Discuss options with the lender before applying for a loan.
Loanz360 is a complete online solution for your financial management and protection practices. You can view, manage, and modify everything online without having to step out of the house. On top of everything, we appoint a dedicated relationship manager to aid your loan till the end of the process.
