Funding for Schools

Funding for Schools in India By Terkar Capital

Funding for schools in India

With the increasing rate of literacy in India, we can see an increasing demand for schools. The demand for schools is spreading due to awareness of the importance of education among the residents at large. Schooling or primary education impart largely on the individual’s life and is also considered an integral part. Thus, school is the very first step in the success of life. We need more and more good and competent schools to spread the social cause of education and to make India 100% literate. Thus, avail funding for schools in India at Terkar Capital to cater this idea.

Funding for schools

Starting a school is not at all an easy task, it has to go through many steps which include land or premises allotment, construction of the building, hiring staff, documentation, etc. To overcome these challenges, funding is provided to improve the infrastructure and to meet the growing expectations of individuals. This facility is obtained through Project Funding or term loans, as per the requirements of the borrower.


1. Long-term Tenures:

Being the infrastructural project, the tenure for school funding is long-term. So, this will make easy and flexible repayment options for the borrowers.

2. Flexible Repayment Options:

If the borrower opts for project funding, the loan can be repaid after the completion of the project and once the project starts generating revenue.

3. Cost of Borrowing:

The interest rates for school funding depend upon the profile and overall feasibility of the project. Thus, the ROI is reasonable as compared to unsecured funding.

Services available for School Funding

The following are the services through which school funding can be undertaken,

A) Project Funding

Not only planning is important for starting new projects, but also managing the costs of the project, hence funding is an integral part. Thus, project funding is an appropriate platform for the fulfillment of such finance. For starting a new school, the borrower can opt for project funding. However, the whole project will keep as collateral. And the funds would be disbursed against it. So, it is the most convenient and reliable product where one can obtain funds at a moderate rate of interest.

Understand the process of project funding from case study.


1. Risk Sharing:

Many times, due to a large requirement of funds, there is an involvement of more than one lender. In such a case, the capacity of debt is also shared due to the presence of multiple entities.

2. Longer Tenure:

The project funding tenure is usually high. This product is mostly taken for developing infrastructure.

3. Revenue after the completion of the project:

The major advantage of opting for project finance is that the repayment period will start after the completion of the project. Also, once the project starts generating revenue. Thus, It will help the borrower to complete the project at ease and stress-free.

Stages of project funding

The three important stages involved are Pre-financing, Financing, and Post-financing.

I. Pre financing:

 This stage involves planning and analyzing the project.

II. Financing

This stage involves actually arranging funds from different institutions depending upon the eligibility and considering risks. This process involves sanctioning and disbursing funds.

III. Post Financing

This stage consists of keeping a record of how the project is undertaken. Also, the track of cash flows has to be maintained, which will help the lender for repayment of the funds.

B) Term loan

The existing schools that wish to renovate or expand the existing structure can opt for the term loan. Because, the term loan has fixed EMIs, a fixed amount, and a fixed term. Usually, the rate of interest is also fixed. So, Such loans are available through a secured way of funding and the repayment is flexible and done through EMIs. The period/tenure, repayment, and ROI totally depend upon the requirement and authenticity of the borrower.


1. High credit score, a larger amount of funds:

If the credit score of the borrower is high, then a higher amount of loans can be sanctioned. Based on the CIBIL score, the amount, interest, and other factors are decided.

2. Reasonable cost of borrowing:

Available against the collateral, the school funding provides loans at the reasonable cost of borrowings to the clients.

3. Tax benefit:

Interest payable on term loans are tax-deductible and thus obtains tax benefit.

Process of Funding for schools

1. Understanding the project:

It is the crucial part to identify. How the project will turn out and how it will explain to the investors and lenders for borrowing finances?

2. Scrutinize the internal factor:

We focus on the requirements and expectations of the borrower. Then we suggest a suitable debt product after studying all the aspects. Such as CIBIL score, track record, financials, etc.

3. Find the correct sources:

We help bridge the gap between eligible borrowers and capable lenders.

4. Generating Finance:

The fund will sanction and disburse. The borrower will, however, start his journey of success!

For More Details Please contact our Experts

If you have any questions, please do not hesitate to ask us. Please also call us or email us before visiting to make sure that you will be served with our best services.

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