A school’s infrastructure and the quality of its facilities are important predictors of student learning and teacher retention. Establishing a safe and healthy school environment is absolutely essential for students’ physical and emotional learning. A child is influenced by a number of diverse components or determinants, infrastructure being one of them. School infrastructure should include services that make the learning process seamless but most low-budget schools in rural India cannot afford to have basic infrastructures like benches, books, doors, buildings, playgrounds, libraries and qualified teachers. The absence of these infrastructure facilities and utilities leads to a significant loss of instructional time, which has an impact on educational outcomes.
According to a report by the Unified District Information System for Education Plus, over 6,000 schools across India do not have a building, over two lakh schools do not have a library facility, nine lakh schools do not have functional computer facilities for the students and over 11 lakh schools do not have internet facilities, as per The Hindu reported. This had an impact on the kind of digital education options available to schools during the pandemic, as well as future plans for hybrid learning in the days ahead. Just as schools play an important role in shaping a child’s personality and perception, the school’s infrastructure plays a facilitating hand in creating a favourable environment. Thus, your child needs an ideal school campus in order to improve their academic performance.
Many education-focused best private school loan companies in India provide customised loans to affordable private schools for infrastructure improvements such as the construction of new buildings or classrooms, the rehabilitation of existing structures, the purchase of land, furniture, computers, lab equipment, or the upgrading of sports facilities. Owners who want to construct a new building or renovate an existing one can use private school financing. The best private school loan companies in India provide school loans but you will have to mortgage your home or other property as collateral. The cash can be put to a variety of uses. Take the development of new classrooms, for example. You can also purchase land for school expansion, computer and science lab renovations, and school buses and vans.
Feature and benefits of private school loans
Mortgage a property and get this type of private school loans to hasten loan processing and quicken loan disbursal.
There is no need to pledge assets as collateral; simply meet the criteria and submit documents to get approval. The whole school loan process could take 5-7 working days.
The school loan amount will be repaid to the lender through Easy Monthly Installments (EMIs) over the term of the loan. It can be repaid using the Electronic National Automated Clearing House (e-NACH) or Post-Dated Cheques (PDCs).
The interest rate is determined by a number of factors, including the loan amount requested, the type of school loan requested, the type of collateral offered, the loan tenure selected, the school’s future cash inflow, loan repayment history, and so on.
How to apply for a loan from one of India’s best private school loan companies
There are several ways of applying for a school loan from one of the best private school loan companies in India:
Step 1: This is the simplest and most practical method of applying. Either fill out an online application form, attach any required documents and submit.
Step 2: Or, you can apply by providing all of the requested documents, and the lender will contact you to discuss the loan terms before moving forward with the application.
Step 1: Visit a Branch: You can apply for a loan by going to your nearest branch with the required documents, discussing the loan terms with a representative, filling out the application, and submitting it in person.
Step 2: Call the Lender: You have the option of calling the lender directly or requesting a callback by expressing your interest. After that, you can talk about the loan terms and apply.
Banks and other financial institutions are turning to digital methods to better serve their customers. One way is to use a Virtual Assistant to clarify your doubts and request assistance with the application process.
Documents needed when applying for a loan from one of India’s best private school loan companies
You will need these documents to apply for any kind of school loans:
- KYC documents
- Business financial documents
- Proof of business: Incorporation or registration certificate
- Bank account statements
- Collateral documents
What are the use of a loan from one of India’s best private school loan companies?
It serves various purposes including:
- Purchase of land for constructing a school building
- Purchase of land for playground or for setting up the sports complex
- Construction of new school building
- Purchase of ready to occupy school premises
- Renovation of an old school building
- Buying furniture, library books, computers, software, sports equipment or lab equipment, etc.
- Working capital funds to take care of the day-to-day operations of running a school.
Note here that you cannot get this private school loan to open a new school. A minimum of 3 years of existence is required to avail any loans from nonbank financial companies (NBFCs). However, you can use a loan for construction of a new school building or new classrooms.
Following the devastating effects of the pandemic, affordable private school owners must make significant investments to meet the input and entry requirements in a highly fragmented and competitive environment. Philanthropic funding, venture capitalist and social investor investments, as well as bank and financier loans, are all options for funding. However, philanthropic support is limited to a few schools, and an unfavourable regulatory environment discourages banks and investors from investing. A few of the best private school loan companies in India only work with low-income private schools and cater to their needs.