Loan transfer is done for various purposes as below :

• Refinancing to reduce obligation : Sometimes, existing bankers does not support education institutes for requirement of extra funds. In such a situation, institutes can look to transfer existing loans to new financiers, with a top-up amount on the existing loan, without giving additional security (existing security value is adequate) This top-up loan can be used for working capital, plot purchase, construction, other purchases etc.
• Top up on existing loan : If the school is servicing many loans at a time (Project loan, Bus loans, unsecured loans etc) & cashflow is streched, then consolidation of all these loans in one loan for easy & lower EMI is inevitable. Time required for such loan consolidation is 20-30 working days.
• Release of Promoter Properties from existing bankers : During initial stages of operations, promoters normally mortgage their personal assets to bank for availing institute loan. But when the institute becomes self-sufficient ,promoters' personal properties can be released. Loan transfer in such cases, can help to release promoters personals properties.

Many schools are run on franchisee based models. In this model, there are two ways – in one model, the owner of the property leases out school property to a branded school and gets rental income per month. School is operated by brands like the Podar school model. In other models, property is owned by the promoter and school is also run by the promoter. In return, the promoter shares franchise fees every year with the brand, like Delhi public school model. In both the cases, finance for promoters can be arranged. Time required in such proposals is 10-15 working days.

Buses are an integral part of school & institute operations, especially when it is located outside the city limit. These assets can be utilised to raise loan, to be used as working capital for institutes.

Here's a breakdown of the documents you'll typically need to apply for a loan for your school or educational institute:

1. Financial Statements : If 3 years are not available, at least 1 year of financial statements is mandatory.
2. Banking Records : Last 12 months' bank statements of accounts where school fees are deposited.
3. Existing Loan Information (if applicable):
   • Sanction letters for any current loans.
   • Latest loan statements for all ongoing borrowings.
4. Legal & Registration Documents:
   • PAN card copy of the trust/society.
   • Registration certificate and bylaws of the trust/society.
5. Promoter/Trustee Identification:
   • PAN card copies of main trustees or promoters.
   • Aadhaar card copies of main trustees or promoters.
6. Property Documents:
   • All relevant property documents for assets being offered as collateral (for secured or LRD-based loans).
7. School Operational Documents:
   • Valid permissions/affiliations (CBSE, ICSE, State Board, etc.).
   • Class-wise student strength & fee structure for the last 3 years (preferably in Excel format).