For education trusts and societies, seeking collateral-free school loans without property mortgage, SME Fundings offers tailored unsecured financing solutions. Even with good fee collection, many institutions lack traditional property collateral. We specialize in arranging unsecured working capital loans for schools & other institutions, ensuring access to vital capital.

We provide two primary types of Unsecured School Loans:

• Pure Unsecured School Loan: Sanctioned based on the school's financial statements, healthy cash flow, and reliable banking history. Loan amounts typically range from ₹ 10 lakhs to 2 crores.
• Fees Discounting Loan: This innovative collateral-free loan leverages school fees as security through an efficient escrow mechanism. Institutions can get ₹ 50 lakhs to 5 crores without needing property collateral under this product. So if your private school or institution has good fees collection, you can definitely look to raise funds from this option.

With swift processing & our expertise, unsecured loan sanction and disbursement can be completed within 7 to 10 working days. This collateral free private school loans can be utilized for various purposes, including working capital, building construction, purchases, and essential payments, supporting the overall growth of your trust or society. However, being unsecured in nature, these loans are provided for small durations like 1 year to 4 years only.

Is your educational institution's cash flow stretched due to high EMIs or multiple loan obligations? Are you looking for extra capital for expansion without increasing your collateral? Is your existing banker not supporting your additional funding needs? Then, SME Fundings’ Balance Transfer and Refinancing solutions are designed specifically to provide financial flexibility to schools, colleges, and educational trusts in India.

We facilitate the transfer of your existing bank loans with a fresh top-up amount to help you achieve the following financial benefits:

A) Refinancing Existing Loans to Reduce Obligations

Refinancing is the process of transferring your existing loan from one bank to another with higher loan amount, higher repayment period, lower Interest rate and lower EMIs, without giving additional property collateral and without having any impact on credit score.

When is Refinancing Your School or Institution Loan the Right Choice?

• Existing Bank Does Not Support: When the existing bankers do not support Schools and education institutes for requirement of extra funds because of any reason, schools can look to transfer their loans to new financiers under refinancing with additional top up loan.
• High EMIs & Cash Flow Issues: When the existing loan of the school or trust is for short duration with high monthly installments, causing stress on the cash flow, balance transfer (with or without Top up Loan) under refinance is the better option.

Key Benefits of Refinancing Your School Loan with SME Fundings:

Balance transfers under refinancing is highly useful in following situations:

• - Reduced EMI Obligation:Refinancing is the highly effective in reduction of your monthly EMIs, leading to immediate relaxation in your institution's cash flow.
• - Access to Urgent Funds:Loan transfer with top up will get you additional funds readily available when growth opportunities arise.
• - No Additional Collateral Required: Property prices appreciates year on year but loan amount diminishes. Loan transfer with top up will help you for optimum utilization of your School or Trust property, ensuring you don't need to pledge more assets for more funding.
• - Lower Interest Rates: Loan transfer increases your chances of getting new loans at lower interest rates, directly impacting your long-term savings.
• - CIBIL Score Remain Intact: SME Funding’s loan transfer process with refinancing is designed to have no negative impact on your institution's or individual credit rating (CIBIL Score). That’s the beauty of it.

B) Loan Consolidation & Top-Up:

Educational institutions & Private Schools often manage multiple loans simultaneously – be it a Project Loan, Bus Loans, Unsecured Loans, or others. Juggling these can lead to stretched cash flow and administrative complexities.

Our Loan Consolidation service helps you to:

• Combine Multiple Loans: Merge all your existing loans into one single, manageable loan.
• Simplify Repayments: Single, easy, and lower EMI will reduce your efforts.
• Improve Cash Flow:Reduce the burden of varied repayment schedules and high interest rates.
• Top-Up Capital loan: Get additional funds on top of your consolidated loan for any immediate or future requirements. SME Funding’s swift consolidation process typically takes 20-30 working days, ensuring minimal disruption to your operations.

C) Release Promoter or Trustee’s Personal Properties

During the initial stages of setting up an educational institution, promoters frequently mortgage their personal assets as collateral to secure necessary school loans. This can tie up valuable personal wealth. Once your institute achieves self-sufficiency and stable operations, Trustee’s personal properties can be released only by mortgaging school or institution property. Our loan transfer facility provides a unique opportunity to -

• Free Up Personal Assets: Transfer your existing school loan to new bankers, allowing for the release of your personal assets that were previously mortgaged.
• Reduce Personal Liability: Mitigate the financial risk on individual promoters as the institute's assets can become the primary collateral.
• Enhance Financial Flexibility: Reclaim your personal property, offering greater financial freedom and peace of mind for the promoters.

Are you a school promoter or property owner involved in a franchisee-based school model? Are you willing to long lease your school property to branded schools to ensure a regular rental income? SME Fundings offers specialized lease rental discounting (LRD) loans against leased school property to help you secure the capital you need.

We cater to three primary scenarios:

• LOI Based Project Funding:
  If you own a land or school property (Lessor) and wish to lease it to established educational brands like Podar, Sri Chaitanya, Narayana or Orchid (Lessee), expecting to generate consistent rental income for long duration, SME Fundings can arrange tailored finance solutions up to Rs 50 crores, for property owners (Lessor) on the basis of Letter of Intent (LOI) signed with Lessee & Future rentals. We will provide loan to lessor for construction of school building as per lessee requirement, with a moratorium period up to 1 year. EMIs will start after the start of regular rental income.
• Ready School Property Leased to Branded Schools:
  If you (lessor) have already leased the school property to branded schools (Lessee) and is receiving monthly rentals, we can arrange loan for you, up to Rs. 50 crores, based on rental income, for further construction, plot purchase etc.
• Promoter-Owned & Operated Franchise Schools:
  For promoters who own the property and also operate the school under a franchise model (e.g., sharing annual franchise fees with brands similar to the Delhi Public School model), we provide dedicated school financing options up to Rs. 25 crores.

SME Fundings simplifies school property loans for promoters across all these models. Expect efficient processing, with loan sanction and disbursement typically completed within 10–15 working days. Secure the vital funding for your franchise school venture or property development today!

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:
   • Last 3 years ITR, consolidated financials & audit reports of the Trust, Society, or Section 8 Company running the institution.
   • 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).