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School Financing Loan: A Complete Guide You Need to Know

Clix January 2, 2020

When it comes to constructing a school, it’s fairly evident that the funds required to build infrastructure, pay salaries, commence renovations, and other such aspects are factors that can burn off a substantial chunk of money. Arranging the funds required to accomplish the same can prove to be a monumental task without te right channels and devices.

This is where the concept of school financing loans – also known as K-12 loans – come into the picture. Our school financing loans let you face little to no hurdles in ensuring that the facilities of your education institution are second to none. We provide these K-12 loans with the following features that place it a cut above the rest.

  • Our loan amounts range from Rs. 10 lakhs to Rs. 7.5 crores to encompass a bevy of financial requirements related to a K-12 loan.
  • Clix sports an experienced Underwriting Team that analyses a business’ cash flows and identifies critical business requirements to settle upon an appropriate loan amount that you should avail.
  • You can choose both secured and unsecured K-12 loans, as per your convenience.
  • We allow for loan tenures that can stretch all the way up to 10 years (5 if the loan is unsecured).
  • When it comes to documentation, rest assured that Clix will ensure that you only have to submit the most important documents and nothing more.

These benefits make Clix Capital the go-to place for people who wish to avail a school financing loan. If you’re interested in taking this course of action, then read the following information to know about the eligibility criteria for the loan.

  • First off, you need to be at least 21 while applying for the loan (25 if you’re opting for an unsecured K-12 loan) and under 65 by the time the loan tenure ends.
  • Your business needs to be a registered Trust/Society/Section 25 Company in managing K-12 schools.
  • If you’re applying for loans above Rs. 2 crores, then you need to have reported your audited financials for the past two years.
  • Your business needs to be a going concern in the education domain, with a minimum business vintage of 5 years (7 if you’re opting for unsecured K-12 loans).
  • The minimum number of students in your school should be 400.
  • Your school – residential or otherwise – needs to be approved by CBSE, ICSE, or the State Board. Play schools are not eligible.
  • If you’re applying for a secured K-12 loan, stay ready with a residential, commercial or school institution property that you can provide as collateral.

The following schools are not eligible for a K-12 loan:

  • Non-Affiliated schools
  • Schools where fees are received from the government/Government-aided schools
  • Schools which don’t progress past the VIIIth standard.
  • Schools where the passing percentage in the highest class is less than 80%.
  • Any religious trust.
  • Schools where the number of students has reduced over the previous academic year.
  • Schools running under rented promises that doesn’t own any immovable property. An exception arises if the balance lease period is more than the loan tenure. This lease can be in the name of trust/society and should be registered. In such a case, the promoter’s personal immovable property can be put up for mortgage.
  • Schools running on lad which is “Agricultural” – SARFEASI applicability is mandatory from an underlying collateral perspective.

Do you meet the above criteria? If yes, congratulations! All you need to do is provide the following documents and you’ll be well on your way to secure a K-12 loan.

  • A completed loan application form.
  • A passport-size photograph.
  • ID proof (can be your PAN Card, Driver’s License, or Government ID).
  • Address proof (your Aadhar Card).
  • Your financial documents/income proof (PAN Card, 12-month bank statement, 6-month bank statement of key partners/directors/promoters/trustees coming on loan, a recent copy of your Income Tax Return form, and a proof of business continuity for 5 years).
  • Proof of business ownership.
  • Property documents for acceptable collateral (for secured loan).

Do you successfully meet the eligibility criteria mentioned above? In that case, click here to kickstart the process of getting a K-12 loan with Clix Capital!

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