Education institutes have unique nature of functioning. It receives maximum income during period of admissions, i.e in June – September in a year. Sometimes, fees is received in instalments throughout the year. So the loan repayment for schools / Education Institutes /Trusts / Societies has to be in accordance with the pattern of its fees receipts. It will help them to maintain cash flow throughout the year and repay the loan easily & on timely basis.
1) Arranging fresh term loan : Fresh loan for schools can be availed for -
This loan is generally given against the Collateral security of school / institute, owned by Promoter / trust or society & can be sanctioned - disbursed within a span of 20-30 working days.
2) Arranging Loan Transfer from Existing Banker : We also help schools / Societies to transfer existing loans to new lender, for any of following purposes -
a) Refinancing of existing loan to reduce obligation : When the cash flow of school / Education Trust or society does not match with repayment schedule, it becomes difficult for them to repay the loan on time. In such situations, we can help schools / Education Institutes / Trusts / Societies by takeover of this loan and arranging new loan with higher tenure (10-12 yrs) with lower rate of interest. It will help schools / education trust to reduce obligation for repayment of loan, without affecting its credibility. For example: Current outstanding of the loan is Rs. 21 crores, to be repaid in next 3 years i.e. Repayment obligation is Rs.7 cr per year plus interest. We can transfer this loan to a finance institution for 7 years with lower rate rate of interest. Hence new obligation will be Rs.3 crores per year plus interest. Time required for such loan transfer is 20-30 working days.
b) Transfer high interest loan to low interest loans: We help schools / education institutes to transfer its high interest loans to a financier with low interest loan. It will help the institutions to save the interest drastically.
c) Consolidation of many loans in to one loan: If the school have many loans going on, of different amounts and different EMIs, we can arrange to consolidate all these loans in one loan for easy repayment and possibly making some properties free for our client. Institutes will also save in interest costs.Time required for such loan consolidation is 20-30 working days.
d) Top up on existing loan: Sometimes, existing banker does not support the schools Or education Society for requirement of extra funds. In this case, we can help Education Institutes / Trusts / Societies to transfer the existing loan to new financier, with top up amount on existing loan and without taking additional security (Provided security value is adequate)
3) Unsecured loans for schools /Education Trust/ Society :
We also arrange unsecured loan for education institutes without giving any property collateral from Rs. 10 lacs to Rs. 1 crore. These funds can be used for any purpose of the school or institute or trust & is available for only those Education Institutes / Trusts / Societies which has minimum stability of 3 years & have fees reflected in audit report. Time required to arrange such unsecured loans is 5-10 working days. Being unsecured, interest rates for such loans are higher than secured loans.
4) Bus Loan for schools & Colleges :
We also help in arranging loan for purchase of buses for schools.
5) Arranging Loan against Leased School Property :
Many schools are run on franchisee based model. In this model, there are two ways – in one model, owner of the property lease out school property to a branded school and gets rental income per month. School is operated by the brand like Podar school model. In other model, property is owned by promoter and school is also run by promoter. In return, promoter shares franchise fees every year with the brand, like delhi public school model. We arrange finance for promoters in both cases. Time required in such proposals is 10-15 working days.