Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Personal Loan BYTES FROM OUR KITCHEN

    Loans for Private Schools

    Private schools are all a rage in urban India right now. Most parents want their children to study in schools with international standards, state-of-the-art education infrastructure, and ample exposure and growth opportunities. This trend is an ideal chance for entrepreneurs wishing to invest in the education system.

    However, lofty aims are not sufficient to construct and operate a private school. Private schools require a lot of investment towards construction of state-of-the-art classrooms and other learning spaces, infrastructure building and maintenance, technology and tie-ups with foreign institutions, hiring the best teachers and instructors, etc. For this, you might need to take a business loan. However, instead of taking a generic business loan, you can go for a loan targeted at educational institutions, which would offer better terms. Let us look at some of the private school loan products available in India.

    SBI School Plus

    The State Bank of India (SBI) and its subsidiaries offer School Plus, which aims at helping educational institutions build, maintain or upgrade their services and facilities. This loan can be taken for any of the following reasons:

    • Establish, expand, renovate or modernise educational institutions
    • Buying land for building or playground
    • Construction of school building or auditorium
    • Repair or renovation of existing building
    • Buying computer, laboratory or sports equipment
    • Buying books, software and other training material
    • Buying furniture or fixtures
    • Starting the mid-day meal scheme

    You can get the SBI School Plus under 2 kinds of loan – Working Capital Loan and Term Loan. Working Capital Loan has to be repaid in 1 year, while Term Loan can be repaid in 3 to 8 years. You will need to provide collateral guarantee for loans above Rs.10 lakh, and the value of the collateral pledged should be at least 50% of the loan amount. If movable assets are bought with the loan, you need to provide hypothecation for them to the bank as well. The bank will give you up to 80% of the total cost of your project as loan. The interest rate on the loan is around 12.6%.

    Baroda Vidyasthali Loan

    Bank of Baroda gives loans to educational institutions for the same purpose as SBI. The minimum loan amount you can take is Rs.25 lakh, and the maximum amount you can take is Rs.15 crore. The loan amount approved would be 75% of the total cost of your project. The interest rate on the loan ranges from 10.6% to 11.85% depending on the total amount you are borrowing. The repayment period is very flexible, with up to 7 years including a moratorium period of 2 years. You need to provide the following as collateral security (depending on why you are taking the loan):

    • Equitable mortgage of land and building
    • Hypothecation of instruments, equipment and other movable assets bought with the loan
    • Personal guarantees of the promoters of the institution

    ICICI Loans for Schools and Colleges

    The ICICI Bank allows schools and colleges to take loans to maintain and expand their operations. Educational institutions can borrow money in the following ways:

    • Take a loan against fee receivables
    • Get overdraft facility for working capital needs
    • Get bank guarantees to meet performance and monetary commitments
    • Get term loans for expansion

    The bank does not have a fixed interest rate for its loan for schools and colleges. The rate is decided on the basis of the business profile, financial records, the required loan amount and tenure.

    Varthana Secured and Unsecured Loans

    Varthana is an NBFC offering loans to educational institutions for all kinds of requirements. They offer secured and unsecured loans. Secured loans – offered against a collateral security – can be obtained for a period of up to 5 years, and the minimum loan amount has to be more than Rs.5 lakh. The organisation funds up to 85% of the cost of the project. To be eligible, the schools needs to:

    • Have at least 500 students on their rolls
    • To be operational for a minimum of 2 years
    • Have good repayment capacity and a track record of repaying EMIs regularly
    • A pass percentage of at least 80% in the highest class in the school

    For unsecured loans, the tenure is up to 3 years and the funding would be given for up to 75% of the project cost. The school should have a minimum of 300 students enrolled into it and adequate quotations and estimates need to be provided.

    ISFC Loans

    The Indian School Finance Company Private Limited (ISFC) gives several kinds of loans to educational institutions. These include:

    You can get secured loans of up to Rs.2 crore and unsecured loans of up to Rs.15 lakh, depending on the kind of loan you are seeking.

    Apart from these, you can approach any bank or NBFC for business loans if you wish to start or expand an educational institute. All financial institutions offer reasonable rates of interest for such loans because of the element of social service in the business cause.

    Personal Loan Reviews

    • Axis Bank Personal Loan
      "Excellent service"
      0.5 4.0/5 "Great!"
      I have applied for Axis Bank Personal Loan through online .The agent clearly explained the process of the loan.The rate of interest was as ok and the processing fee was also ok. while submitting the documents not yet faces any issues .The documentation part was more.The loan amount got on time .The loan amt was sufficient s well .The Overall Service is Good.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "Excellent service"
      0.5 4.5/5 "Excellent!"
      I came to know about Bank bazaar through advertisement only.Then i have checked for credit score .Bank bazaar is providing very good service as of now need to avoid calling the same person frequently.Then i have tried to apply for Tata Capital Personal loan .The agent clearly explained the process of the loan and not yet faced any issues as of now.The rate of interest was little bit high and the processing fee was acceptable .The Overall Service is Good .
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Tata capital Personal Loan
      "Excellent service"
      0.5 4.5/5 "Excellent!"
      I have applied for Tata capital Personal Loan.I have not faced any issues. The rate of interest was littile bit high and the processing fee was little bit acceptable.The agent clearly explained the process of the loan.I have not faced any issues till now .The Overall Service is Good and satisfactory .
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "GOOD PORTAL TO USE"
      0.5 4.0/5 "Great!"
      It is the first time experience with the Bankbazaar.com and i had a very good experience also i am using it through the mobile application as the application is user friendly and convenient to access. The customer service is very good and responsive. by explaining the details of the loan.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 24, 2019
    • ICICI Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have been using the personal loan with the ICICI since from last few years the loan amount with them was good also the documentation process was simple and it was hassle free to use. The rate of interest with this nominal added on that the service is very good with this bank.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • ICICI Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have taken the personal loan with the ICICI BANK the loan amount with this bank what they have offered was satisfactory. The rate of interest with this bank was nominal also i am using it since from last one year and it is good to use.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "ONE STOP SOLUTION"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com i have been using it since from last few months and i have a very good experience i have been using it through the mobile application as the application is user friendly also it is convenient to access. The customer service is good and they are responsive.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • IndusInd Bank Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      There is no particular reason for taking the personal loan with the INDUSIND BANK. The loan amount was good and the rate of interest was 10.5% which is nominal when compared to the others. The documentation process was easy and it is comfortable.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through online only .The Bank bazaar is the only online website giving all details about the banking products .I have applied for Tata Capital Personal Loan and not yet faced any issues .The agent clearly explained the process and not yet faced any issues as of now.The Overall Service is Good.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Tata capital Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have applied for Tata capital Personal Loan. No clue on the rate of interest and charges levied by them,The agent clearly explained the process .I have not faced any issues till now .I have cancelled the plan of taking the personal loan since not require the personal loan .
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Kotak Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      The reason for taking the personal loan with the KOTAK MAHINDRA BANK is i am an existing customer customer with this bank. The loan amount was good also the rate of interest was 11.5% with this loan and the duration is for 48months for repaying he loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "USER FRIENDLY PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      It is the first time experience with the Bankbazaar.com and i had a very good experience with the Bankbazaar.com. I am using it through the mobile application as the application is user friendly and convenient to access. The customer service is very good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      It is the best loan that i have taken with the EarlySalary when compared to the other so i have taken this loan. The documentation process was simple and and also i got a loan within a day after the documents. The loan amount was lesser with this loan as they have given also the rate of interest was lesser.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 24, 2019
    • HDFC Bank Personal Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      I have applied for the personal loan with the HDFC BANK and have been using it since from last few years and the documentation process was simple and it is easy procedure to get the loan. I got the loan within 10-15 days with this bank. The rate of interest was lesser with 11.5% with 4 years of duration.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "USER FRIENDLY PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com i am using it from last one year and i have a good experience and i am using it through the mobile application as well as the website both are easy and user friendly portal to access. The customer service is good and they are responsive.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      The loan amount was lesser along with that it is with lesser duration which is comfortable so taken the personal loan with the EarlySalary. The documentation process was simple and the documents collected at the doorsteps. I got the loan within 8-10days with this loan also, the loan amount is good with 12-13% of rate of interest.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Axis Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have applied for the consumer durable loan with the AXIS BANK they have offered with the good loan amount also the documentation process was simple to get the loan. I have taken the MOBILE PHONE with this bank, the duration for repaying the loan is for 9 months.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "CONVENIENT PORTAL"
      0.5 4.0/5 "Great!"
      Bankbazaar.com this is the first time experience as i have been using it through the website the portal is convenient also it is user friendly to access.The customer service is good and also they are good by explaining the details of the loan.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "AVERAGE"
      0.5 4.0/5 "Great!"
      The documentation process was good with the EarlySalary where i have applied for the personal loan. The loan amount was good also the processing fee was nominal. The rate of interest was higher with this loan when compared to the other loans.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have applied for Personal Loan Early Salary. The agent clearly explained the process .The rate of interest was nominal and the processing fee was nominal. I have got loan amount on time .The loan amount was sufficient and not yet faced any difficulties.The Overall Service is Good and Satisfactory .
      Was this review helpful? 0
      , gurgaon
      Reviewed on Mar 24, 2019
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