Requirements to Get Loan for Opening a School/College
Starting a school or college in your locality can be a productive venture. However, it may prove to be a tedious task, because you need to have thorough knowledge of the required documents, estimate of costs incurred in providing infrastructural facilities etc. Moreover, starting a school/college can be an expensive venture as well, because you will need at least Rs 2 Crore as the capital investment. If you are not able to arrange the required amount on your own, you may resort to banks/financial institutions that offer loan to small business entrepreneurs. In case you are new to the industry, the basic requirements given below, to get funding for starting school/college in India, will help you a great deal.
To Get Loan for Opening a School/College, You Will Require The Following Documents:
- Documents stating ownership of the land is the first pre-requisite to get loan for starting a school/college in India. The documents should include the name of the Trustees/members of the Society that would run your college/school.
- If you have bought an agricultural land, then you will need conversion of the land into institutional/commercial land, as per the norms laid down by the government. In this case, you need to produce a Change of Land Use document, to get loan for opening school/college. You need to submit Collateral containing details about the cash in hand, while applying for loan.
- You need to submit a comprehensive project report stating the funds required for the entire project, allocation of the capital investment etc. You may divide the costs incurred in acquiring the land, labor charges for the construction of building, whitewash, cost on interiors such as woodwork, plumbing and electrician work, fire safety equipment etc. The project report you submit should be a working model of your school/college.
- You also have to submit a business profile stating the work nature of your venture and number of employees that you are planning to hire for your school/college.
- You should also include the costs involved in preparing the forms and approved legalities. In other words, you should clearly state the cause for the requirement of such an amount.
- Trust Deed is an important document that you need to submit to the bank, in order to get funding for starting a school. The Trust Deed should include Bye-laws.
- To get loan for opening 10+2 school, you also need to submit the Income Tax Return (ITR) of all the Trustees. You should submit the ITR of at least 3 years.
- In case you are taking 10+2 school franchise, you need to submit a copy of the franchise agreement document.
- Last but not the least – you need to submit credentials of the Trustees, stating their profile. The profiles should include their respective address proof, ID Proof, PAN no. etc. Fill the Franchise Contact Form to get consultant’s advice.