5 Things You Need to Know About Education Institution Loan

1. 5 Things You Need to Know About Education Institution Loan

2. An education institution loan is a type of loan which is taken for the purposes of building educational institutes. As a developing country, India needs a strong educational infrastructure in which students can reach their full potential and achieve their dreams. An education institution loan helps out in this regard by providing educational entrepreneurs with the correct funding for their innovative endeavours. 

3. Since this is a relatively new type of loan, many people are still not completely aware regarding several aspects of it. To raise more awareness for the same, we are listing down 5 things one should know about education institution loans.  1. The various types of education institution loan Under the category of ‘education institution loan’, you will find various types of loans that can be taken depending on one’s needs. Let’s look at a few of them.  I. Education infrastructure loans - provides funds for up-gradation and expansion of the existing educational infrastructure

4. II. Construction loans - helps to fund the construction of new buildings, new classrooms, new teaching methods, expansion, renovation, and so on.  • III. Land loans - taken to fund the purchase of new land for expansion of the existing campus.  • IV. Refinancing loan - provides funds through a new loan to tackle an already existing loan by reducing the overall interest paid on the previous loan. 

5. 2. Available for a variety of educational institutes • Lenders who offer education institution loans understand the requirements of different types of schools. Therefore, loans for a variety of schools such as pre-schools, playschools, K-12 schools (Kindergarten to 12th std), and boarding schools are provided by lenders to any edupreneurs looking to expand and renovate. 

6. 3. Maximum loan amount up to Rs 4 crores • Building the educational institute of your dreams is a big task. And, it is probably going to require a large amount of finance. Therefore, choosing a lender that provides the required finance is important. Most lenders who provide an education institution loan have a maximum loan amount limit of Rs 4 crores. The minimum amount may be set at around Rs 25 lakhs.  

7. 4. Eligibility criteria for education institution loan • To apply for an education institution loan, you/your school may have to meet the following eligibility criteria: • - The applicant must be a trust/society, or public and private limited company • - Your school must be recognized by the applicable boards, state government, or central government.  • - Your school must be functioning for at least 3 years old • - Your school must have a strong administration and good income. • - Your school must have an excellent record of repaying any previous loans

8. 5. Flexible repayment tenures  • Depending on the lender you have chosen, you may have a loan tenure ranging from 3 to 8 years during which you can repay your loan. You may also be given the option to pre-pay or make part-payments on the loan if you wish to, after 6 months of the final disbursement of the education institution loan. However, make sure you are aware of the prepayment or part-payment charges before you decide to do so.  • Do remember that the features of education institution loans will differ as per the lender. You are advised to consult a professional in this field and get their advice before going ahead.  • We hope this article has improved your understanding of the education institution loan! • Related Article: -Want to Get the Best Education Loan in India? Make Sure the Lender Offers These 5 Features