Loan against School Property

Loan Against College/University Property

School finance has its own features & different nature than other loan products. Schools have unique nature of functioning. It receives maximum income during period of admissions, i.e in June to September in a year or fees is received in instalments throughout the year. So the loan repayment for schools has to be in accordance with the pattern of its fees receipts. It will help schools to maintain cash flow throughout the year and repay the loan easily & on timely basis.

What is Loan against School Property?

When an individual is running a private school or college on his owned property and want to improve infrastructure, education quality, new teaching technology, sports activity, library, lab, amenities in the school, etc. It requires a large amount of investment.

When an individual takes loan against school property from bank or NBFC to improve the infrastructure and quality of education of the school to meet the growing expectations and requirements of the parents, students and regulatory authorities is called loan against school.

Benefits of Loan against School Property!

RENNOVATION OF THE SCHOOL:If you want to renovate your school. You can take loan against school property from bank or NBFC to renovate the school.
PURCHASE OF LAND & BUILDING FOR THE SCHOOL:If you want to open a new branch of the school or you want to buy adjacent land with the school or you want to build a new building in the same school to improve the infrastructure of the school then you can take loan against school property from bank or NBFC to purchase of land & building for the school.
PURCHASE OF FURNITURE AND FIXTURE FOR THE SCHOOL:If you want to purchase, bench, chair, table, air conditioner, fan, exhaust fan, etc for the school then you can take loan against school property from bank or NBFC to buy furniture and fixture for the school.
PURCHASE OF SPORTS GOODS AND LAB EQUIPMENTS FOR THE SCHOOL:If you want to buy sports goods and lab equipment for the school, you can take loan against school property from bank or NBFC to fulfill the school requirement.
IMPROVE GOODWILL OF THE SCHOOL:Schools are being evaluated by parents, students and other regulatory authority by the infrastructure and other amenities being provided by the school. To improve the infrastructure and amenities in the school you can take loan against school property from bank or NBFC and thus increases the goodwill of the school.

Eligibility Criteria

All the bank or NBFC have their own loan eligibility criteria but there are some common loan eligibility criteria which borrower has to fulfill to avail loan against industrial property from bank or NBFC.

Following are some key important factors which would be checked by bank or NBFC to accept or reject the loan against industrial property application:-

PRIVATE SCHOOL LAND:The ownership of school land must be private. The owner has not taken any kind of grant or aid for the school land.
UNAIDED SCHOOL:The school must private and not taking any kind of grant or aid from the central or state government to run the school.
RECOGNITION:The private school must be recognized by central or state education board.
MINIMUM FEE CRITERIA:The school must have monthly fee of at least Rs. 500 per student.
MINIMUM STUDENT CRITERIA:The school must have minimum 250 students enrolled.
REGULAR INCOME:The school must have regular source of income.
REPAYMENT TRACK RECORD OF LOANS:The school must have good repayment track record of all previous loans.

Documents required

KYC Documents

Pan Card
Aadhar Card
Voter ID Card
Passport
Latest Month Electricity Bill
Copy of Rent Agreement/ Registered Lease Deed

INCOME DOCUMENTS

Latest 3 year ITR with computation of Income
Latest 2 year form 26AS if applicable

BANK STATEMENTS

One year up to date all the saving account statement

LOAN DOCUMENTS

Copy of Sanction Letter
Upto date loan account statement
Loan repayment schedule
12 Months up to date bank statement showing repayment of the loan
Loan closure proof if loan is closed