Starting a senior secondary school is a promising business opportunity. Investing in a school is certain to fetch you impressive returns. However, opening a 10+2 school is requires big capital investment. So, in such situations, entrepreneurs may have to take a loan. But getting a loan from banks and financial institutions is a lengthy and complicated process. However, if you follow the procedure systematically, getting a loan for setting up a new school will become an easy process. Here are the steps to get a loan for starting a school:
The first step is 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 relatively, you should approach only those banks that provide loan to small businesses.
The next thing is to prepare the documents for completing the loan application. The basic documents are 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), working model of the school with an estimate of the capital involved, loan request document and business profile, collateral, personal financial statement of owners, etc.
The next step is to file the loan application. You need to take photocopies of all the aforementioned documents required and attach it to the application. You need to convince the bank that granting you a loan will be mutually beneficial for both bank and owners. In addition, try to present your school as a low-risk proposal.
While discussing the proposal, you should prepare answers for the queries that could be asked by the bank officials. Typically, the bank official would ask you questions such as the amount of money you want to borrow, duration of the loan period, modes of loan payments and most importantly, why you want the loan. So, you should project yourself as a confident and an assured borrower.
It’s also an important step. Know how you will repay your loan – whether your banker wants you to pay the EMI via cheque, cash or SI (Standing Instruction). Ask about the amount that will be deducted.
If you are interested for opening a school, fill the franchise application form. We will help you with all the steps required to setup a school in your city.