Features and benefits of school loan

  • Unsecured loan

    Unsecured loan

    With no need to pledge assets as collateral, simply meet the criteria and submit documents to get approval in under 48 hours*.

  • Flexi benefits

    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.

  • Online loan management

    Online loan management

    Log in to our online customer portal and track your loan information at your convenience.

Running a school efficiently involves ensuring that the institution is keeping up with the times. This means upgrading the infrastructure, renovating older parts, constructing new educational wings, investing in technology, adding amenities, and so much more. All of these undertakings are costly, but you can easily handle these expenses when equipped with a school loan by Bajaj Finserv.

This instrument offers you a sanction of up to Rs. 80 lakh, helping you address your funding needs comfortably. What’s more, you can opt for a repayment tenor that ranges up to 96 months to ensure healthy cash flow. Our loans also have several other features designed to provide you with a comfortable and efficient borrowing experience.

What is a School Loan?

A school loan is a form of business financing specifically designed to help educational institutions manage and expand their operations. It provides funds to private or independent schools for purposes such as upgrading infrastructure, building new classrooms, investing in digital learning tools, improving facilities, paying staff salaries, or meeting working capital needs.

These loans are typically offered by banks and non-banking financial companies (NBFCs) to school management bodies or educational trusts. They are unsecured in most cases, meaning no collateral is required, and come with structured repayment options. A school loan ensures that educational institutions have the financial resources to deliver quality education and scale effectively.

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Eligibility criteria and documents required

  • Age

    Age

    24 to 80 years*
    (*Age should be 80 years at Loan Maturity)

  • Nationality

    Nationality

    Resident Indian

  • CIBIL score

    CIBIL score

    Check your CIBIL Score for FREE

    685 or higher

  • Work status

    Work status

    Self-employed

  • Business vintage

    Business vintage

    At least 3 years

Documents required:

You will need the following documents to apply:

  • KYC documents
  • Business proof: Certificate of business ownership
  • Other financial documents

Advantages of school loan

Here are some key benefits that make school loans a valuable financial solution for educational institutions:

  • Improves infrastructure: Enables schools to build classrooms, laboratories, libraries, and other essential facilities.
  • Supports digital upgrade: Helps invest in smart classrooms, e-learning tools, and IT infrastructure.
  • Manages working capital: Provides funds to cover day-to-day operational costs such as utility bills and salaries.
  • Expands capacity: Assists in increasing student intake by financing new buildings or branches.
  • No collateral required: Many school loans are unsecured, removing the need to pledge assets.
  • Flexible repayment options: Offers repayment tenures suited to the school’s revenue cycle and cash flow.
  • Strengthens academic quality: Facilitates hiring of qualified faculty and procurement of updated teaching material.
  • Boosts compliance and safety: Enables investment in safety equipment, CCTV cameras, and other regulatory requirements.

Interest rate and charges

Type of fee

Applicable charges

Rate of interest

14 to 25% per annum

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 Term Loan (Flexi Dropline) - Rs. 999/- (inclusive of applicable taxes)
Flexi Hybrid Loan (as applicable below) -

  • Up to Rs. 6,499/- (inclusive of applicable taxes) for loan amount less than Rs. 1000000/-.

  • Up to Rs. 8,999/- (inclusive of applicable taxes) for loan amount from Rs. 1000000/- to Rs. 1499999/-.

  • Up to Rs. 13,999/- (inclusive of applicable taxes) for loan amount from Rs. 15,00,000/- to Rs. 24,99,999/-

  • Up to Rs. 16,999/- (inclusive of applicable taxes) for loan amount of Rs. 25,00,000/- and above.
    *The Flexi charges above will be deducted upfront from the loan amount
    *Loan amount includes approved loan amount, insurance premium and VAS charges

Penal charge

Delay in payment of instalment(s) shall attract Penal Charge of Rs. 40 per day 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: 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment

  • Flexi Term Loan (Flexi Dropline): 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.

  • Flexi Hybrid Loan: 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.

Part Pre-payment

  • 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part Pre-Payment.

  • Not Applicable for Flexi Term Loan (Flexi Dropline) and Hybrid Flexi.

Stamp Duty (as per respective state)

Payable as per state laws and deducted upfront from loan amount

Broken period interest

Method of recovery of "Broken Period Interest/Pre monthly instalment Interest" would be as follows:

Scenario 1: If Loan is disbursed on 1st or post 10th of the month:

For Term Loan : BPI amount will be capitalised, i.e added to Principal amount on Due date / Deducted from disbursement
For Flexi Loans: BPI amount will be capitalised, i.e added to Principal amount on Due date / Added to first instalment

Scenario 2: If Loan is disbursed between 3rd and 10th of the month:
First instalment will consist of interest for actual number of days.

Annual maintenance charges

Term Loan – not applicable.
Flexi Term Loan (Flexi Dropline): Up to 0.413% (inclusive of applicable taxes) of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges.

Flexi Hybrid Loan: Up to 1.18% (inclusive of applicable taxes) of the total withdrawable amount during initial loan tenure. 0.413% (inclusive of applicable taxes) of total withdrawable amount during subsequent loan tenure.

Principal Holiday Facility Fees

Principal Holiday (as applicable below) - (Inclusive of applicable taxes)

Up to Rs. 6499 (Inclusive of applicable taxes) for loan amount less than Rs. 10,00,000.
Up to Rs. 8,999 (Inclusive of applicable taxes) for loan amount between Rs. 10,00,000 and 14,99,999.
Up to Rs. 13,999 (Inclusive of applicable taxes) for loan amount between Rs. 15,00,000 and Rs. 24,99,999.
Up to Rs. 16,999 (Inclusive of applicable taxes) for loan amount Rs. 25,00,000 and above.

Note-
The above principal holiday facility fees will be deducted upfront from loan amount.
Loan amount includes approved loan amount, Insurance Premium and VAS Charges.

Legal and incidental charges

Recovery of charges

How to apply school loans

Apply for this loan in just a few quick steps.

  1. 1 Click on ‘APPLY ONLINE’ to go to the online application form
  2. 2 Fill in your basic information and enter the OTP sent to your registered mobile number
  3. 3 Fill in your personal and business information
  4. 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

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