How to Get Funding for Starting a School?
Starting a private school for imparting education at the 10+2 level can be a rewarding venture. You will not only reap profits just after the school starts functioning, but also garner attention and respect from the society. However, you should keep in mind that opening 10+2 school in India can be an expensive venture. You will require at least Rs 2 Crores to start 10+2 school. It would include expenditure on advertising and promotional activities, construction of the physical infrastructure and facilities required for the school. In such a situation, you may resort to funding for school from bank, private money lender or financial institution. Private school funding from banks requires the completion of a number of formalities on paper. However, if you go step-by-step, funding for high school/private 10+2 school can be an easy process.
10+2 school funding in India involves the following process:
- The first step is to make a list of all the banks in your locality, which offer funding for private school, high schools and 10+2 schools in your locality. You may shortlist only those banks that offer loans to entrepreneurs who are new to the field of education.
- The next step is to prepare the necessary documents of the land that you have purchased for starting 10+2 school in India. The documents would include the ownership document of the land – the name of the individual/Trustees who own the land. You will also need CLU (Change of Land Use), in case you are converting agricultural land to institutional/commercial land as per the requirement.
- The next step is to prepare a detailed project report. A comprehensive project report will be helpful to get funding for a school at the 10+2 level. Your project report should clearly specify the following points:
- Working model of your 10+2 school with an estimate of funds required for the construction of the school’s building, interiors, costs of labor, woodwork, plumbing, power supply and finishing work of the institution. You will also have to submit the cost on preparing the forms and approved legalities. The costs incurred in operations (including recruitment) should also be mentioned in your project report, in order to acquire funding for school.
- Name of the Trustees/Members of the society/ individual/group of individuals who would run the school
- Detailed information on the area of the land, its physical infrastructure including number of classrooms and other rooms
- Profile of Trustees with detailed information
- Now, you may submit a Trust Deed, mentioning the bye-laws of the registered office of the Trust, which would be involved in the administration of your private school.
- The next is to submit the Income Tax Returns of Trustees. You need to submit the ITR for at least the past 3 years. Apart from this, you will also have to submit the address proof, ID Proof, PAN number of the Trustees.
By following the aforementioned steps, 10+2 school funding can be hassle-free for you.