Benefits of opting for an education infrastructure loan in India

1. Education is considered a stepping stone towards a brighter future. The parents of today’s times have understood this and are trying their hardest to provide quality education for their young lads. The Indian education system has undergone some serious changes- all for the better. The teachers are well qualified and the school is laden with the latest gadgets. Thus, just like the parents who are trying their level best, even the schools and institutes have to be perfect in all departments. However, not every school and educational institute has the required amount of dough to meet their needs. In such times, rather than compromising on the quality of education, the schools should opt for an education infrastructure loan and equip themselves. There are lot of banks and NBFCs (non-banking financial companies) that have started providing these loans. However, there are still many of us who are not privy about the availability of such loans. Thus, today in this article, we will help you understand the idea behind it and the various benefits of opting for them. Benefits of opting for an education infrastructure loan in India

2. What is a loan for education infrastructure? An education infrastructure loan is given out by banks and NBFCs (non-banking financial companies) to cater to the needs of educational institutes. The institutes can make use of the loan amount to renovate, construct or acquire new plots for educational infrastructure. They can also use the loan amount to purchase new equipment’s, tools, hardware as well as software. 

3. Why opt for them? There are numerous benefits of opting for these loans; a few of them are here as follows:* The loan amount is given across a number of different education providers such as school, college, vocational centre, university, coaching classes, etc. They are given to the ones providing primary education, secondary education, vocational training, higher education, coaching, etc.* The repayment of an education infrastructure loan is done in the flexible form of EMIs (equated monthly instalments). This helps lessen the burden and thus, ensure that you never default on any of your repayment. The financial institutions also provide online quotations on their websites to simplify the loan process for you.* The processing period to avail this loan is much lower than the one taken by the traditional financier and loan sharks. Even the interest rates charged by them are lower than the ones charged by the traditional financiers.

4. However, you need to fulfil the eligibility criteria given out by banks and NBFCs (non-banking financial companies) to make use of these loans are here as follows:* The financial institutions have set a minimum number of students to determine the eligibility criteria of the educational institution. For most of the banks and NBFCs (non-banking financial companies), the minimum number of students is 500 and more.* Also, the financial institution has to be functioning for a minimum amount of time- generally, around 2 years.* The banks and NBFCs (non-banking financial companies) also check the overall pass percentage of your educational institution before disbursing the education infrastructure loan.