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Lenders offer loans to trusts and societies of private schools to expand their infrastructure. The interest rates are around 16% and vary between lenders. Interested candidates can get loans up to Rs.20 crore and repay it over a tenure of 10 years, provided they prove a steady cash flow for the future.
Read further to learn the details of some of the lenders that provide loans for private schools.
The table below compares the key features of lenders that offer Loans for Private schools:
Bank Name | Interest Rate | Loan Amount | Loan Tenure |
---|---|---|---|
Bajaj Finserv | 18% p.a. onwards | Up to Rs.30 lakh | As per lender’s discretion |
Reliance Money | As per lender’s discretion | Rs.25 lakh to Rs.20 crore | 3 years to 10 years |
ISFC | As per lender’s discretion | Up to Rs. 2 crore | Up to 7 years |
Bajaj Finserv offers unsecured loans up to Rs.30 lakh for private schools. The approval is provided within 24 hours of application. In case of a pre-approved loan for existing Bajaj Finserv customers, the funds will be made available instantly after completion of a 1-step verification procedure.
Bank Name | Processing Fee | Part Payment Charges | Preclosure?Charges | |
---|---|---|---|---|
Bajaj Finserv | Up to 3% of the loan amount | 2% of the part-payment amount | 4% |
*Note: Charges mentioned above may vary based on applicable taxes.
Reliance Money offers Loans for Private Schools to eligible candidates determined based on future cash flows. The loan is structured as per the understanding of the education funding business. The EMI installments are structured and can be paid on the 1st, 5th or 10th of the month.
Bank Name | Processing Fee | Part Payment Charges | Preclosure?Charges | |
---|---|---|---|---|
Reliance Money | 1% | 5% | As per lender’s discretion |
*Note: Charges mentioned above may vary based on applicable taxes.
ISFC is a lender that offers loans exclusively to the education sector. Candidates who have a good track record for existing loans and have a monthly fee of at least Rs.400 per student can apply for the loan. The loan can be utilised for an array of purposes such as the construction of a building, renovation, purchase of furniture, purchase of hardware or software, etc.
Bank Name | Processing Fee | Part Payment Charges | Preclosure?Charges | |
---|---|---|---|---|
ISFC | As per lender’s discretion | As per lender’s discretion | Nil, up to 25% of the loan amount |
*Note: Charges mentioned above may vary based on applicable taxes.
Contact ISFC to know more about the internal charges and penalties levied on the loan.
Many lenders in the Indian market offer loans to schools so that they can expand and provide better opportunities to students. Each lender has a set of eligibility criteria and guidelines concerning the maximum loan amount and how the loan can be repaid. Make sure you familiarise yourself with the process and keep the necessary documents in handy when you apply for the loan.
You can visit the nearest branch office of the lender you plan to get the loan from and enquire about the application process. You will have to collect the application form, fill it up, and submit it to the lender. Once the lender verifies the documents, it will approve or reject the application. If approved, the loan amount is disbursed within a few days.
Alternatively, you can go to the official website of the lender and provide your details so that the executives can call back and direct the application process to you.
Ans: Typically, co-applicants are required for the loan. Some lenders may need all owners of the property to act as co-borrowers. Otherwise, the loan can be applied through the society/trust of the school.
Ans: Most lenders offer loans to varied educational institutions from schools to colleges offering degree courses.
Ans: Yes, certain lenders such as ISFC allow candidates to transfer existing liabilities.
Ans: The rate of interest offered to the loan applicants depends on an array of factors such as the future cash inflow of the school, loan repayment history, loan amount requested, loan tenure chosen, and so on.
Ans: Charges such as processing fees and documentation fees are charged when the loan is processed. Other charges and penalties such as overdue EMI, cheque bounce, change in EMI cycle, cheque swap, etc. may be payable depending on the instance.
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