The authorities of the institution may often apply for loans to improve the quality of education provided by their school. When considering Indian school finance, the first thought is to approach a bank. Many private colleges are attracted to these established lenders by the low interest rate and trust in the banking system.
Banks provide loans for businesses and other organisations. However, when it comes to funding educational establishments, the process can be quite difficult and the amount requested may take a long time to arrive. This is due to the complicated eligibility criteria and lengthy list of documents required to get a mortgage application accepted.
In India, college finance is only available to institutions that are backed up by promoters and/or a trust. When applying for the mortgage, you will need to submit a copy of the trust deed or the memorandum. When the mortgage is used by a personal or public financial institution, they may additionally request hard copies of some additional paperwork, such as three to four years’ worth of financial statements with audit reports, three to four years’ earnings tax returns filed by the school, bank statements, and several KYC paperwork.
If the school has only been in operation for two years, they may not be able to obtain a mortgage. The legal restrictions on funding educational trusts may also require the bank to request collateral security or the involvement of a guarantee. This is the most difficult part, as few colleges can afford a valuable financial asset to be hypothecated to the lender.
There are other options for financing personal schooling? These establishments can they apply securely for their mortgage and receive the amount in minimal time without having to submit a number of paperwork or arrange collateral? The answer is, thankfully, ‘Yes’.
FinTech companies, which are digitally operating non-banking financial institutions (NBFCs), have developed a borrower friendly lending model to assist promote high-quality schooling in India. They offer college financing on simple terms and conditions that only require the borrowing institution to:
Non-public colleges with useful lessons for LKG through VIII/X/XII grades
Promoter or a belief
Price ranges of more than Rs. Have a price range of more than Rs. 75 lakhs
You can build your college property yourself
The application course of is digital. Therefore, the school can only add a comfortable copy of its paperwork to prove their eligibility. Financial/financial statements for the previous two years are also required. FinTech loans do not require collateral or guarantee.
If you have plans to construct a new building in your school, upgrade the library, renovate the labs, or add another facility to enhance the education service, a FinTech can help finance the plan.
You can apply for a college loan without securing it
Capital Float, a leading college finance provider in the Indian FinTech industry. We offer fast loans up to 50 lakhs for college development.
