Steps for Getting Loan for Opening a School
Starting a senior secondary school is a fruitful venture. It is a one-time investment, which would fetch you profits once it starts functioning. However, in order to open 10+2 school anywhere in India, you will have to invest at least Rs. 1 Crore. In a situation when you have to shell out huge amount, you may want to borrow money. Getting loan from banks and financial institutions is a lengthy as well as complicated process, because it involves a lot of paperwork. However, if you follow the procedure systematically, getting loan for setting up a new school will be easy.
Given below are the steps to get loan for starting a school
- The first step for getting loan to open a school will be to decide whom you want to approach. In case you want to approach banks, then prepare a list of all the banks that provide loans to entrepreneurs in the field of education. Since your school is new to the market, approach only those banks that provide loan to small businesses.
- After you decide which bank to approach to get loan for starting a school, the next thing is to get ready with the documents required to apply for getting loan for starting a school. The basic documents required would include No Objection Certificate (NOC) issued by the state government; Document of Ownership of Land (provided the land is in the name of a Trust/Society) and working model of the school with estimate of the capital involved. Apart from the aforesaid basic documents, you would also require loan request document and business profile specifying the type of business you are, collateral as well as personal financial statement of owners.
- The next step is to fill the loan application. You need to take photo copies of all the aforementioned documents required and attach it to the application.
- Now, you may approach the bank official, with whom you would discuss the steps for getting loan for opening school. Prepare yourself to approach the bank official. You need to convince the bank that granting you a loan will be mutually beneficial as well as a low-risk proposal.
- While discussing the proposal, you need to be very sure of your answers for the queries asked by the bank official. Typically, the bank official would ask you questions such as the amount of money you want to borrow, duration of the loan period, mode of loan payment and most importantly, the reason why you want the loan. So, project yourself as a confident and an assured borrower.
- Now that you have submitted the documents required, you can start your homework. First, you will have to understand the loan. Know how you will repay your loan - whether your banker wants you to pay the EMI via cheque, cash or SI (Standing Instruction). Figure out how much amount shall be deducted from your income, for payment of the loan.
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