State Bank of India provides term loan scheme "School Plus" for existing schools in order to repair / renovate / add new buildings or purchase of electronics equipments, computers and laboratory equipments, books, manuals, furnitures and other utility fixtures.
Eligibility for SBI School Plus Bank Loan
1. Educational institutions with adequate source of income
2. Educational institutions run by trusts, private management
3. Institutions should have necessary approval from the Government agencies to run the school
4. Building construction / alteration / renovation should have a proper approval from local bodies
5. The promoters / Trustees / key persons of the school should be persons of good standing in the society.
Nature of facility
Term loan with fixed repayment schedule based on repayment capacity and income streams
Margin: 15% of the project cost
Tenure of School Plus Bank Loan
1. Loan amount up to Rs. 2 lakhs - Repayable in 36 equated monthly installments
2. Loan amount from 2 lakhs to 5 lakhs – Repayable in 60 equated monthly installments
3. Loan amount above 5 lakhs – Repayable in 84 monthly installments
Security of SBI School Plus Bank loan scheme
Primary security: Hypothecation of the charge over assets acquired out of bank finance.
1. Personal guarantee of the Key Manager/Trustees/Promoters/any other persons/body acceptable to the bank
2. Equitable Mortgage of the land and building of the school or of the guarantor (depending on the availability)
3. For loans over 2 lakhs equitable mortgage over the other immovable assets of the institution (depending on the availability)