Running a school efficiently requires continuous investment to keep pace with evolving educational needs. This may include upgrading infrastructure, renovating existing facilities, constructing new buildings, adopting modern technology, and adding essential amenities. While these improvements can involve significant costs, a Bajaj Finance School Loan can help you finance them with ease.
With a loan amount of up to Rs. 80,00,000, you can meet your institution's funding requirements confidently. You can also choose a repayment tenor of up to 96 months, helping you manage cash flow more effectively. The loan also includes a range of features designed to make the borrowing process simple, convenient, and efficient.
What is a school loan?
A school loan is a type of business finance designed to help educational institutions manage their day-to-day operations and support long-term growth. It provides funding to private and independent schools for purposes such as upgrading infrastructure, constructing new classrooms, adopting digital learning solutions, improving facilities, paying staff salaries, or meeting working capital requirements.
These loans are typically offered by banks and non-banking financial companies (NBFCs) to school management bodies, educational trusts, or societies. In many cases, they are unsecured, meaning no collateral is required, and they come with flexible repayment options. A school loan provides educational institutions with the financial support needed to enhance learning standards and expand their operations effectively.
Features and benefits of school loan
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Unsecured loan
With no need to pledge assets as collateral, simply meet the criteria and submit documents to get approval in under 48 hours*.
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Flexi benefits
With the Flexi loan facility available on a school loan, you can borrow from your sanction at any time at no additional costs.
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Online loan management
Log in to our online customer portal and track your loan information at your convenience.
Here are some of the key benefits of a school loan for educational institutions:
- Supports infrastructure development: Helps schools build classrooms, laboratories, libraries, and other essential facilities.
- Enables digital transformation: Provides funding for smart classrooms, e-learning solutions, and IT infrastructure.
- Meets working capital requirements: Helps cover day-to-day operational expenses, including staff salaries and utility bills.
- Supports expansion plans: Assists in increasing student capacity by financing new buildings, campuses, or branches.
- Available without collateral: Many school loans are unsecured, eliminating the need to pledge assets.
- Offers flexible repayment options: Provides repayment tenures aligned with the institution's cash flow and income cycle.
- Enhances educational standards: Enables schools to recruit qualified teaching staff and procure updated learning resources.
- Improves safety and regulatory compliance: Supports investment in CCTV systems, safety equipment, and other statutory requirements.
Eligibility criteria for school loan
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Age
21 to 80 years*
(*Age should be 80 years at Loan Maturity)
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Nationality
Resident Indian
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CIBIL score
Check your CIBIL Score for FREE650 or higher
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Work status
Self-employed
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Business vintage
At least 3 years
Documents required for school loan
You will need the following documents to apply:
- KYC documents
- Business proof: Certificate of business ownership
- Other financial documents
Interest rate and charges for school loan
Type of fee | Applicable charges |
Rate of interest | 14% to 23% per annum For Emergency Credit Line Guarantee Scheme (ECLGS) 5.0: 8% p.a. to 13% p.a. |
Processing fees | Up to 4.72% of the loan amount (inclusive of applicable taxes) |
Bounce charges | Rs. 1,500 per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason. |
Flexi Facility Charge | Term Loan – Not applicable Flexi Loan – Up to Rs 999/- to Rs 16,999/- (Inclusive of applicable taxes) will be deducted upfront from loan amount. |
Penal charge | Delay in payment of instalment(s) shall attract Penal Charge at the rate of 36% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
Part-prepayment charges* | Full Pre-Payment • Term Loan: Up To 4.72% (Inclusive Of Applicable Taxes) On The Outstanding Loan Amount As On The Date Of Full Pre-Payment. |
Stamp Duty (as per respective state) | Payable as per state laws and deducted upfront from loan amount |
Annual maintenance charges | Term Loan: Not applicable Flexi Term (Dropline) Loan: Up To 0.59% (Inclusive Of Applicable Taxes) Of The Dropline Limit (As Per The Repayment Schedule) On The Date Of Levy Of Such Charges. Flexi Hybrid Term Loan: Up To 1.18% (Inclusive Of Applicable Taxes) Of The Dropline Limit During Initial Loan Tenor. Up To 0.59% (Inclusive Of Applicable Taxes) Of Dropline Limit During Subsequent Loan Tenor. |
Principal Holiday Facility Fees | Principal Holiday (as applicable below) - (Inclusive of applicable taxes) |
Legal and incidental charges | Recovery of charges |
| Credit Guarantee Scheme Fee | Credit Guarantee Fund for Micro Units (CGFMU): Credit Guarantee Scheme fee - Up to 1.18% p.a. (pro rated daily till 31st March) (inclusive of all applicable taxes) of loan amount. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE): Credit Guarantee Scheme fee – Up to 0.885% (inclusive of all applicable taxes) of loan amount (for first 12 months). |
| Credit Guarantee Scheme Renewal Fee | Credit Guarantee Fund for Micro Units (CGFMU): Credit Guarantee Scheme Renewal fee – Up to 1.18% p.a. (inclusive of all applicable taxes) on the outstanding loan amount/Dropline limit as on April 01 of the subsequent Financial Year. *Renewal Fee to be collected only for 3 subsequent financial years. **If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE): Credit Guarantee Scheme Renewal fee – Up to 0.885% (inclusive of all applicable taxes) annually on the outstanding loan amount/Dropline limit as on the last day of the month preceding the anniversary date of pool submission *If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated. |
Note: For loans under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, only Stamp Duty charge is applicable.
How to apply for a school loan
Apply for this loan in just a few quick steps.
- 1 Click on ‘CHECK LOAN OFFER’ to go to the online application form
- 2 Fill in your basic information and enter the OTP sent to your registered mobile number
- 3 Fill in your personal and business information
- 4 Upload the last 6 months bank account statements and submit the application
Our representative will call you shortly after to offer further loan processing instructions.
*Conditions apply
**Document list is indicative
Frequently asked questions
No. Most school loans offered by Bajaj Finance are unsecured, so you do not need to provide any asset as collateral to avail of the loan, subject to the lender's eligibility criteria and approval process.
You can avail of a loan of up to Rs. 80,00,000, subject to your eligibility and business profile.
The repayment tenor can be up to 96 months, giving you the flexibility to manage your cash flow more effectively.
Yes, both part-prepayment and full prepayment are permitted. Prepayment charges of up to 4.72% (inclusive of applicable taxes) may apply to the outstanding loan amount or the amount being prepaid.
