Objective
To provide financial assistance for new and existing schools including play schools, kidzee, and colleges for repair, renovation, addition of new buildings, or purchase of electronic equipment, computers, laboratory equipment, books, manuals, school vehicles, furniture, and other utility fixtures.
Eligibility
- educational institutions run by individuals, trusts, private managements, and registered societies with Registrar of Societies.
- Institutions should have necessary approval from government agencies to run the school or college.
- Building construction, alteration, or renovation should have proper approval from local bodies.
- Promoters, trustees, or key persons of the institution should be persons of good standing in society.
Exclusions
- Acquisition of second-hand equipment or machinery.
- In house fabrication of equipment or machinery.
- Reimbursement of the cost of equipment or machinery purchased more than ninety days prior to the date of application.
Margin Money
Twenty five% to thirty five%.
Rate of Interest
The rate of interest will be charged by the Corporation equal to the State Bank of India Marginal Cost of Fund Base Lending Rate (MCLR) for 1 year tenor as revised from time to time for all lending cases.
Security
As per the provisions of the Term Lending Policy of the Corporation. Term lending up to Rs. 50.00 lakh can be considered under CGTMSE cover of Credit Guarantee Trust Fund depending upon the credentials of the prospective borrower. The guarantee fee shall be borne by the borrower.
Repayment
The term loan shall be repayable in a period ranging from three years to seven years, including a moratorium of one month to twenty-four months from the date of disbursement.
Up-Front Fee
No upfront fee shall be charged for Term loans up to ₹25.00lakh. Term loans beyond ₹25.00lakh & up to ₹100.00lakhs shall attract upfront fee @ 0.375% of the Term loan sanctioned plus GST; Term loans beyond ₹100.00lac shall attract an upfront fee of 0.75% of the term loan sanctioned plus GST. The upfront fee paid shall be non-refundable.
Processing Fees
The Corporation shall charge processing fee as per the structure given here under:
| Amount | Fees |
|---|---|
| Up to ₹25.00 lakh |
₹ 2,500 |
| Above ₹25.00 lakh to ₹50.00 lakh |
₹ 5,000 |
| Above ₹50.00 lakh to ₹75.00 lakh | ₹ 7,500 |
| Above ₹75.00 lakh to ₹100.00 lakh | ₹ 10,000 |
| Above ₹100.00 lakh to ₹150.00 lakh | ₹ 12,500 |
| Above ₹150.00 lakh to ₹250.00 lakh | ₹ 15,000 |
| Above ₹250.00 lakh to ₹350.00 lakh | ₹ 20,000 |
| Above ₹350.00 lakh to ₹450.00 lakh | ₹ 25,000 |
| Above ₹450.00 lakh to ₹550.00 lakh |
₹ 30,000 |
| Above ₹550.00 lakh to ₹650.00 lakh |
₹ 35,000 |
| Above ₹650.00 lakh to ₹750.00 lakh |
₹ 40,000 |
| Above ₹750.00 lakh to ₹850.00 lakh | ₹ 45,000 |
| Above ₹850.00 lakh to ₹1000.00 lakh | ₹ 50,000 |
*plus, GST as applicable
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Note:
EMI results are indicative and may vary as per bank or lender policies.
During the moratorium period, interest is capitalized and EMIs are recalculated
over the remaining loan tenure without extending the original tenure.
Documentation
Standard documentation as per the norms of the Corporation.
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