Modern schools require modern infrastructure and facilities, and to achieve this, educational institutions require funds to cover all the costs and meet these requirements.
Infrastructure, facilities, quality of teachers and the reputation of the school are the primary considerations for any parent or student seeking admission. Banks, Non-Banking Financial Companies (NBFCs) and sundry financial institutions currently offer loans for new educational institutions, but they must be in operation for at least three years.
With the loans for new educational institutions, schools can expand their infrastructure in order to satisfy the growing demands of students, parents, and regulatory authorities.
According to the Annual Status of Education report 2021, private school enrollment for children between the ages of 6-14 has reduced across the country, from 32.5% in 2018 to 24.4% in 2021. Some of the factors that may have contributed to the decline are:
- Lack of proper infrastructure
- Pedagogical shortcomings
- Lack of training for teachers
- Educating children with theoretical methods
- Poor assessment/evaluation of the child’s learning
- High competition among the schools
The loans for new educational institutions have several advantages. Private unaided schools require the same level of attention as government-run schools, which is why many NBFCs provide loans to these schools in order to improve student learning and infrastructure.
Loans for new educational institutions:
Loans for new educational institutions are offered by lenders (Banks, NBFCs, or other financial institutions) for improving infrastructures like construction of new buildings or classrooms, renovation of existing buildings, purchase of land, furniture, computers, lab equipment or upgradation of sports facilities.
They offer two types of loans for new educational institutions:
- Secured school loans
- Unsecured school loans
A type of private school loan provided to the institutes in which borrowers (school leader/principal/educator) have to mortgage a property in return known as collateral to avail the loans for new educational institutions from the lender. The loans can be used for the construction of new classrooms or the set up of computer and science labs.
Features of secured loans
- Customised to your school’s growth needs
- Customised loans for larger projects
- Payback in easy monthly installments
- A wide range of collateral accepted
Unsecured school loans are provided to schools in which there is no collateral required to borrow the loans. The fund can be used to purchase furniture and equipment like computers, desks or tables, LCD projectors, fans, classroom digital boards, sports materials, science lab materials, and smart classes, etc. It can also be used for CCTV installation, buying new IT software or hardware infrastructure, construction of restrooms and many more.
Loans for new educational institutions: Features
1. Faster Loan
Quick and hassle-free loans with fast approvals.
2. Customised amount
Avail of up to 2 crores of school funding for larger school projects
3. Best rates
Personalized Doorstep Service. The interest rate on a school loan is calculated using a variety of factors such as the loan amount requested, the type of school loan chosen, the loan tenure chosen, the school’s future cash inflow, loan repayment history, and so on.
4. Best tenure
Depending on the school loan eligibility criteria, creditworthiness, loan amount, and usage of the loan, the tenures start from 3-6 years.
Loans for new educational institutions: Benefits
When your new school or educational institution is well equipped with the necessary tools and equipment, it provides the best education and a conducive learning environment. Banks, NBFCs, or other financial institutions offer loans for new educational institutions to improve the infrastructure and renovate private schools. Your school or educational institution can use this capital to:
- Construct new buildings: Loans for new educational institutions can help you create new buildings and classrooms, which will improve the learning environment. Renovations to the new laboratory, library, and classrooms can also be done quickly and easily.
- Connectivity: By taking loans for new educational institutions, you can improve campus connectivity. Teachers and faculty can connect and relay information more quickly and accurately.
- Sports facilities: Better sports equipment and facilities can be brought into your premises with loans for new educational institutions. This will help you sustain better physical education for students, which is an important part of their learning process.
Varthana has designed special loans for new educational institutions in India. It currently offers loans for new educational institutions, but they must be in operation for at least three years. Educational institutions like affordable private schools have specific requirements. And, at Varthana, we understand that taking care of the school, giving fees and funding all these areas can be difficult.
Our dedicated team has been working with affordable private schools all over India. This experience gives us a competitive advantage in advising you on the growth and expansion of your institution. Our loans for new educational institutions help recently built schools and learning institutions with capital and operational expenditure requirements. We cater to reputed institutions from the education industry and also supply educational materials.