Starting a school is a no doubt a lucrative venture. Apart from giving profits, it also helps to garner respect from the society. However, starting a school in India is a time-consuming and an expensive venture. For instance, to open a senior secondary school, you need to invest a minimum amount of Rs.2 Crore. This budget will include the expenses on construction, facilities, promotion etc. So, investing such a huge amount on your own not only seems to be difficult but is almost next to impossible. So, in such cases you may resort to funding options such as banks, financial institutions or private money lenders to acquire funds for the establishment of your school.
However, funding from the banks also requires completion of a number of formalities. So, in case you are seeking funding from the banks, go through the step-by-step procedure mentioned below.
Initially, make a list of all the banks situated in your neighbourhood that provide loans for the purpose of setting up schools. Then shortlist those banks that provide loans to the entrepreneurs who are new in the education sector.
Next, you need to gather all the necessary documents required while applying for the loan from the bank. The list of documents includes the NOC allotted by the government of state, Document of ownership of land in the name of the governing entity of your school. In case, you are getting an agricultural land converted to commercial land, then you also need to submit the CLU (Change of land use) Certificate.
Apart from the above mentioned documents, you are also supposed to prepare a detailed report specifying the type of business you are starting and your financial statements, names of the members of your society, working model of your school, information on the usage of land area etc.
Further, you need to fill a loan application form and submit it to the bank along with the photocopies of all the documents mentioned above.
Next, you need to prepare yourself to convince the bank official to grant you the loan for the purpose of establishment of the land. Further, ensure him that since you are opening a school it will be mutually beneficial and is a low risk proposal.
Be confident of all your answers for the questions asked by the bank official. Some of the basic questions asked by the bank official are – amount of money you want to borrow, what will be the mode of loan payment, why do you want the loan etc.
Lastly, you need to decide that mode of payment for repaying the loan. You can either pay by EMI via cheque or cash depending upon the banker’s choice.
Besides banks, the most popular financial institutions in India that provide loans for this purpose are IFCI Venture Capital Funds Ltd. (IVCF), ICICI Venture funds Ltd., Delhi Financial Corporation (DFC) etc.
However, the entire procedure of getting the loan and starting a new school is very complicated. Moreover, the approval of loan is quiet difficult in case you are a new entrepreneur in the field of education. So, it is advised to take up a franchise of a reputed brand. This will save you from the difficulties in acquiring the loan and the franchising school will also help you through the entire start up process. So, get associated with SHEMFORD Futuristic School by filling a franchise application form given here and start a school with ease.