How to Get Financial Aid for Private Schools?
Opening a private school for providing education at senior secondary level is a rewarding venture as it not only helps you to garner respect from the community but also enables you to reap profits in the long run. Besides being rewarding & profitable, it is an expensive venture as well. This is because you will need to shell out a huge sum of money ranging between Rs.2-3 Crores. This investment accommodates the land requirement, construction and promotion of your school. However, investing such a huge amount on your own can be quiet difficult. So, you may seek financial aid for your private school from the money lenders, banks or other financial institutions.
Some of the banks which provide financial aid for private schools are State Bank of India, UCO Bank, Axis Bank, Central Bank of India etc. However, getting financial aid from such institutions is a tedious task as it involves the submission of a number of documents and completion of formalities on paper.
The step-by-step procedure to get loan from the banks is given below.
- Firstly, prepare a list of banks that provide financial aid for private schools and shortlist those banks which provide loans to new entrepreneurs.
- After selecting the bank, get the loan application form and fill in your personal information, contact details, property details, income details, total costs expenditures and amount of loan required.
- In addition to this application form, also deposit a processing fee (as prescribed by the bank) along with a set of documents which includes identity proof, address proof, proof of date of birth, pan number, bank statements for last 6 months, property papers etc.
- After submission of all the above mentioned documents and the loan application, the bank conducts a personal interview with you wherein you are asked to present your business plan. So, prepare a detailed project report beforehand. Besides this, a bank official also verifies all the information mentioned in the application form.
- Further, a bank official plans an investigation check to verify you personally at your home or office place.
- In case, the bank official is satisfied with your application and the investigation, it gives you a loan sanctioning letter which includes details such as loan sanctioned amount, interest rates, loan tenure, EMI amount, mode of payment of EMI and other terms & conditions.
- After going through the terms & conditions of the loan sign the duplicate copy of the loan sanctioning letter and return it to the bank.
- Lastly, submit all the original property papers and payment receipts to the bank as a security for the loan provided to you. These papers will be returned to you by the bank after the complete re-payment of the loan.
Following the above mentioned steps can make the entire procedure hassle-free for you. However, taking up a school franchise is a better option as compared to investing your money on an entirely new venture. This is because, it saves a lot on the promotional activities plus the loan availability is easier in case of an already established and known business. So, if you want to buy a school franchise, opt for SHEMFORD Futuristic Schools as it provides fruitful and cost-effective franchise opportunities to new entrepreneurs. To begin with, fill the franchise application form given here.