5 FAQS Related To An Education Infrastructure Loan

 

For a country to prosper and develop, it is imperative that it has good educational institutes. Individuals looking to create such institutes may often face one obstacle when going ahead with their dream: finances. The silver lining here is that there are many ways to fund your educational entrepreneurship dreams and one of the best ways is to opt for an education infrastructure loan. Many people may not be completely aware of what this loan means and what does it exactly offer. Let’s give answers to some common questions related to education infrastructure loans in this article. 

 


1. What is an education infrastructure loan? 

An education infrastructure loan is a type of loan that provides finances to individuals looking to build an educational institute. Such a loan takes care of the finances attached to such an event. The borrower can begin on the repayment as per the terms laid out by the lender in the loan agreement. 

 

2. What is the difference between an education infrastructure loan and an education institution loan? 

An education infrastructure loan is a type of education institution loan. The latter type of loan provides funds to educational entrepreneurs looking to build institutes of their own. However, this type of loan is categorized into different types such as loan refinancing, construction loans, and land loans. These loans focus on specific aspects or stages of building a school or a college and provide funding accordingly while education infrastructure loans focus on infrastructure-related expenses only.

 

3. Who can take an education infrastructure loan? 

An education infrastructure loan can be taken by an individual, trust or a recognized institution. Though the eligibility criteria may differ from lender to lender, you can expect the following points to be required generally: 

 

- The school should be recognized by the relevant state or central governments or other recognized boards.

- The school should have a solid operational income and committed management.

- The organization should have a good repayment track of the previously taken loans

- The school should be at least 3 years old 

 

4. What kinds of expenses are covered under an education infrastructure loan?

When you take an education infrastructure loan, you get coverage for the following expenses: 

·         Up gradation and expansion of your school campus/wings/ institution in general 

·         Integration of new and innovative tools and resources such as introducing advanced learning methodologies to the students 

·         Purchase and facilitation of books and periodicals 

·         Renovation of the current infrastructure of the school/college/educational institute

 

5. What are the documents one needs to provide for an education infrastructure loan? 

The documentation required for an education infrastructure loan differs from one lender to another. The general list is as follows: 

 

KYC documents: 

·         Proof of residence 

·         Proof of identification 

·         Proof of age

·         Business address

·         Signature verification

 

Constitution documents: 

·         By-laws of society/trust deed

·         Registration details

 

Financial documents: 

·         Bank statements for the last 12 months for the entity from the transactional account 

·         Bank statements for the last 6 months for all co-applicants including nonfinancial applicants

 

If you are providing security to the lender against the education infrastructure loan, then you may have to provide documents related to the ownership of the collateral as well. 

 

Also, remember that different lenders have different offerings. Therefore, before you go ahead with any major financial decisions, do read the terms and conditions. Thank you! 



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