Financing to Professional Educational Institutions
Bank had formulated scheme for providing finance to professional educational \ institutions for establishment of basic infrastructure, educational services and take-over of the loans of other financing agencies for the same purposes.
1. Eligible borrowers:
i) The institution must be offering professional courses & registered under Charity act or company act 1956 under sec.25.
2. Prerequisites:-
i) Permission from the competent authority for the professional courses.
ii) Permission of charity commissioner to raise the loan
iii) In case of 'takeover loans the lending bank should provide undertaking
stating that the 'No Due Certificate' & 'release of charges on the assets of borrower' will be provided after receipt of payment.
3. Purpose:-
Construction of administrative office, workshop, laboratory, class rooms, Hostel, clinic / dispensary, staff quarters, auditorium, sports complex & Other infrastructure facilities like
Furniture, fixture, water supply and Electricity supply etc.
4. Project cost :-
Includs land cost, civil work, lift, fire -fighting equipment, electrical connections, water supply for drinking purpose, architect’s fees, stamp duty,
registration fees, contingencies & first year insurance premium etc.
5. Quantum of loan:-
Maximum 80 % of approved project cost.
6. Repayment Period:-
84 months including 12 -months grace period for new construction and
6 months grace for expansion / renovation.
No grace period for ‘takeover loan’
Appraisal and processing Fees: The proposals are to be appraised to ascertain technical feasibility and financial viability by competent organisation Appraisal fee will be borne by the borrower. Processing fee @ 0.10% of project cost will be levied to borrower.
