Steps for Getting Loan for Opening a School

Starting a senior secondary school is a fruitful venture. It is a one-time investment, which would fetch you
profits once it starts functioning. However, in order to open 10+2 school anywhere in India, you will have
to invest at least Rs. 1 Crore. In a situation when you have to shell out huge amount, you may want to
borrow money. Getting loan from banks and financial institutions is a lengthy as well as complicated
process, because it involves a lot of paperwork. However, if you follow the procedure systematically,
getting loan for setting up a new school will be easy.
Given below are the steps to get loan for starting a school

The first step for getting loan to open a school will be to decide whom you want to approach. In
case you want to approach banks, then prepare a list of all the banks that provide loans to
entrepreneurs in the field of education. Since your school is new to the market, approach only those
banks that provide loan to small businesses.

After you decide which bank to approach to get loan for starting a school, the next thing is to get
ready with the documents required to apply for getting loan for starting a school. The basic documents
required would include No Objection Certificate (NOC) issued by the state government; Document of
Ownership of Land (provided the land is in the name of a Trust/Society) and working model of the
school with estimate of the capital involved. Apart from the aforesaid basic documents, you would also
require loan request document and business profile specifying the type of business you are, collateral
as well as personal financial statement of owners.

The next step is to fill the loan application. You need to take photo copies of all the
aforementioned documents required and attach it to the application.

Now, you may approach the bank official, with whom you would discuss the steps for getting loan
for opening school. Prepare yourself to approach the bank official. You need to convince the bank that
granting you a loan will be mutually beneficial as well as a low-risk proposal.

While discussing the proposal, you need to be very sure of your answers for the queries asked by
the bank official. Typically, the bank official would ask you questions such as the amount of money you
want to borrow, duration of the loan period, mode of loan payment and most importantly, the reason
why you want the loan. So, project yourself as a confident and an assured borrower.

Now that you have submitted the documents required, you can start your homework. First, you
will have to understand the loan. Know how you will repay your loan - whether your banker wants you
to pay the EMI via cheque, cash or SI (Standing Instruction). Figure out how much amount shall be
deducted from your income, for payment of the loan.
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Primary School Opening Procedure

Elementary education imparted at primary schools serves as the foundation and the first section of
compulsory education that every child must undergo. Elementary education in India has been made free
and compulsory for all children from 6 to 14 years of age under the Right of Children to Free and
Compulsory Education Act (RTE ACT) 2009. While government schools are the major providers of
elementary education in India, private schools form a significant part of education at the primary level.
Starting primary school can be a fruitful venture, because self-finance institutions are increasing in the
country. If you want to open primary school in your locality, then you need to fulfill the requirements given
below.
Here are the Key Requirements to Open a Primary School

Budget (capital investment) that would range from Rs 15 lakhs to Rs 20 lakhs

Trust/ Society that would run your primary school

Land spread over an area of minimum half an acre of land

NOC from the state government for the construction of your primary schools building

Recruitment of Teachers

Advertising and promotional activities for the launch of your primary school
Procedure to Open Primary School

The first step to open primary school in India is to prepare a plan that highlights what the venture
is all about. You need to clearly specify the budget required for starting the primary school, including
furniture, wood work and finishing work etc. Typically, to open primary school anywhere in India, the
capital investment required will range from Rs 15 lakhs to Rs 20 lakhs.

In the plan, you also need to specify the number of children you wish to enroll into your primary
school, out of which 25% of the children belonging to the Economically Weaker Section (EWS) of the
society shall be offered admission, in accordance with the provisions of RTE Act 2009.

You also need to specify the number of educators you will recruit for your primary school, in your
business plan. The ideal Pupil-Teacher Ratio (PTR) is 30:1. Hence, keeping in mind the PTR as
mandated by the RTE Act, you need to plan how many teachers you will enroll, depending upon the
number of children you want to offer admission to your primary school. Apart from the educators, you
also need to mention the number of administrative staff and support staff for your primary school.

The next step is to form a Trust that would run your private primary school. This is essential
because most of the private-run unaided primary schools in India are run by charitable Trusts or
registered Societies. The Trust should be registered under Indian Trusts Act (1882). The Trust should
consist of at least three individuals as members (Trustees).

Now you may acquire land for your primary school in India. The minimum requirement of land is
8000 sq. ft to 10000 sq. ft. The land can be leased (with rental agreement for at least 30 years) or

purchased property. The land, which should be non-agricultural (either for commercial or institutional
purposes) should be preferably located in a calm atmosphere suitable for a primary school.

The next step is to start the construction of your primary school after getting NOC from the state
government. Your primary school should be constructed keeping in mind all the necessary
infrastructural facilities. To serve the purpose, you may create a plan specifying the dimensions and
positioning of the classrooms, library, rooms for recreational activities such as music and dance, HMs
office, staff room, computer room, reception, toilets etc. After the construction of the rooms, it is the
time for whitewash, interior decoration etc.

Once the school is ready for operations, then you may start recruiting educators, administrative
staff and other support staff.

Now it is the time to launch your primary school. For the purpose, you may conduct a Press
Conference announcing the launch of your primary school.
If you feel that opening a primary school is a tedious and a lengthy procedure, then you may resort to
taking franchise opportunity from an already established educational institution. When it comes to formal
school franchising, SHEMFORD stands out from the crowd. Indias fastest growing International chain of
schools SHEMFORD offers rewarding franchise opportunities all over India and Abroad. If you want to
join hands with SHEMFORD, all you need to do is fill the Franchise Application Form given here.

How to Open Self-Finance School?

Private self-finance schools in India are increasing in both number and popularity. Today, there are many
self-finance schools that have secured their place amongst the top private schools in India. Due to the
increasing competition amongst the education sector, it may be difficult for the newly established schools
to make their presence felt. Those who wish to set up their own self-finance schools may find it a bit
tedious to start their operations. However, if you are planning to open self-finance school, by following a
systematic procedure, you can achieve success in your venture. Before you set up your own self-finance
school, you need to know the basic requirements for the venture.
The Requirements to Open Self-Finance School Are:

Capital (Rs 15 lakhs to Rs 20 lakhs for primary school, Rs 2 Crores to Rs 3 Crores for 10+2
school)

Registration of a Trust / Society

Land (either leased or purchased property)

Permissions from the government

Technical Know-How and Knowledge

Given Below Is the Procedure to Open Self-Finance School

The first thing to do is formulate a plan that would specify the capital investment required for
starting self-finance school. You may also mention the number of educators and other staff you wish to
hire, number of children you will enroll into your school and the expenses on promotional activities for
the launch and further advertising of your school.

The next step is to form and register a Trust that would administer your self-finance school. This
is a mandatory step, because most of the educational institutions in India are run by either registered
Charitable Trusts or Societies for non-profitable purposes.

Now, you may start searching for land required for the construction of your self-finance school.
Before that, you need to select a suitable location for your school. The location should be suitable for
running primary school or K-12 school. You may opt for non-agricultural land for your self-finance
school. In case of agricultural land, you need to convert it into commercial or institutional land. In case
of primary school, the land should be spread over 8000 sq. ft. to 10000 sq. ft. of land. In case of 10+2
school, you will need at least 2 Acres of land. One Acre of land will be sufficient in case if you are going
to set up your self-finance school within the areas of city with population exceeding 25 lakhs or in hilly
area.

Once you get the NOC from the state government, you can start the construction of your selffinance school. For the purpose, you may create a plan for the design of your schools building. You
may also include the dimensions and positioning of the physical infrastructure of your school.

After the construction and finishing work of your self-finance school is over, you may start hiring
educators, Principal and Vice-Principal (for 10+2 school) HM (for primary school), Academic Controller
(if required), subject teachers, physical education teachers, laboratory assistants (for 10+2 school),
librarian, accounts executives and office boys. Your school should necessarily include the basic
facilities, equipment and teaching aid required for imparting quality education.

The last step is to formally launch your self-finance school in your locality. To serve the purpose,
you may arrange a Press Conference to publicize your schools brand name. Simultaneously, you may
conduct an advertising campaign to garner publicity and attention for your self-finance school.
If you want to start your self-finance school, fill up the franchise application form.

How to Open Self-Finance School?

Private self-finance schools in India are increasing in both number and popularity. Today, there are many
self-finance schools that have secured their place amongst the top private schools in India. Due to the
increasing competition amongst the education sector, it may be difficult for the newly established schools
to make their presence felt. Those who wish to set up their own self-finance schools may find it a bit
tedious to start their operations. However, if you are planning to open self-finance school, by following a
systematic procedure, you can achieve success in your venture. Before you set up your own self-finance
school, you need to know the basic requirements for the venture.

The Requirements to Open Self-Finance School Are:

Capital (Rs 15 lakhs to Rs 20 lakhs for primary school, Rs 2 Crores to Rs 3 Crores for 10+2
school)

Registration of a Trust / Society

Land (either leased or purchased property)

Permissions from the government

Technical Know-How and Knowledge

Given Below Is the Procedure to Open Self-Finance School

The first thing to do is formulate a plan that would specify the capital investment required for
starting self-finance school. You may also mention the number of educators and other staff you wish to
hire, number of children you will enroll into your school and the expenses on promotional activities for
the launch and further advertising of your school.

The next step is to form and register a Trust that would administer your self-finance school. This
is a mandatory step, because most of the educational institutions in India are run by either registered
Charitable Trusts or Societies for non-profitable purposes.

Now, you may start searching for land required for the construction of your self-finance school.
Before that, you need to select a suitable location for your school. The location should be suitable for
running primary school or K-12 school. You may opt for non-agricultural land for your self-finance
school. In case of agricultural land, you need to convert it into commercial or institutional land. In case
of primary school, the land should be spread over 8000 sq. ft. to 10000 sq. ft. of land. In case of 10+2
school, you will need at least 2 Acres of land. One Acre of land will be sufficient in case if you are going
to set up your self-finance school within the areas of city with population exceeding 25 lakhs or in hilly
area.

Once you get the NOC from the state government, you can start the construction of your selffinance school. For the purpose, you may create a plan for the design of your schools building. You
may also include the dimensions and positioning of the physical infrastructure of your school.

After the construction and finishing work of your self-finance school is over, you may start hiring
educators, Principal and Vice-Principal (for 10+2 school) HM (for primary school), Academic Controller
(if required), subject teachers, physical education teachers, laboratory assistants (for 10+2 school),
librarian, accounts executives and office boys. Your school should necessarily include the basic
facilities, equipment and teaching aid required for imparting quality education.

The last step is to formally launch your self-finance school in your locality. To serve the purpose,
you may arrange a Press Conference to publicize your schools brand name. Simultaneously, you may
conduct an advertising campaign to garner publicity and attention for your self-finance school.
If you want to start your self-finance school, fill up the franchise application form.

Brief Steps to Open a Private School

The increasing demand & the need for quality education have led to growth of many private entities in the
field of education. Government schools are not enough to increase the literacy rate in our country.
Therefore, to make this thing possible, a PPP (Public Private Partnership) approach is being followed
these days to encourage the growth of private and public schools.
Opening a private school is a conducive business and if you want to make it successful, it is mandatory to
be ready with a complete plan. It is important to have complete information of opening a school,
knowledge of documents required and a full planned infrastructure. It may seem to you a difficult and time
consuming process, but in the end it is going to give you benefits only.
If you are thinking to invest your time and finances in this business, you need to go through general
procedure of opening a private school. To get yourself prepared for this, read out a quick summary given
below:
1.

Formation of Management:

The very first step is to form the board or society of interested individuals for running your school. Then,
register your society under Societies Recognition Act, 1860. It is mandatory to register to prove non-profit
motive of your society.
2.

Get Essentiality Certificate:

This certificate is provided by Department of Education of your state. The DoEanalyzes the need of
opening a school in the particular location.It is required to establish your school within 3 years of getting
Essentiality Certificate; else you have to apply for renewal.
3.

Purchase a Land:

After getting Essentiality Certificate, a letter of sponsorship is forwarded to land owing agencies (DDA or
MCD) according to the level of your school. This letter will help you in getting required land at subsidized
rates from land agencies.
4.

Apply for Recognition:

Once your school building is ready and you have established it, the next step is to get recognition from
the authorities. MCD gives recognition to schools up to 5 th standard. But if you are planning your school

up to 7thgrade, then you need to take permissions from the concerned DoE in your state. However, it is
recommended to start with a primary school and later apply for its up gradation.
5.

CBSE Affiliation:

To make your school known for quality education, it is essential to get it affiliated with the CBSE Board.
The affiliation will make your students attend the public examination or get the benefits of its expertise
curriculum.
Follow these simple steps and start your own private school. Take experts advice to manage your school,
explore resources and provide best in everything to the students.
If you are inexperienced, never been associated with any educational organization and the above steps
seem hard to achieve; follow the franchise path of SHEMFORD Futuristic Schools. We have expert
management team and curriculum is designed by countrys renowned educationists. SHEMFORD Group
of schools with approximately 50 branches is the most trusting and successful brand to provide quality
education across India. Further, we ensure you to provide our continuous assistance in planning, making
and executing your dream of opening a private school with support system.
So, if you want to start a private school, then fill the Franchise Application Form given here.

Requirements to Get Loan for Opening a

School/College
Starting a school or college in your locality can be a productive venture. However, it may prove to be a
tedious task, because you need to have thorough knowledge of the required documents, estimate of
costs incurred in providing infrastructural facilities etc. Moreover, starting a school/college can be an
expensive venture as well, because you will need at least Rs 2 Crore as the capital investment. If you are
not able to arrange the required amount on your own, you may resort to banks/financial institutions that
offer loan to small business entrepreneurs. In case you are new to the industry, the basic requirements
given below, to get funding for starting school/college in India, will help you a great deal.
To Get Loan for Opening a School/College, You Will Require The Following Documents:

Documents stating ownership of the land is the first pre-requisite to get loan for starting a
school/college in India. The documents should include the name of the Trustees/members of the
Society that would run your college/school.

If you have bought an agricultural land, then you will need conversion of the land into
institutional/commercial land, as per the norms laid down by the government. In this case, you need to

produce a Change of Land Use document, to get loan for opening school/college. You need to submit
Collateral containing details about the cash in hand, while applying for loan.

You need to submit a comprehensive project report stating the funds required for the entire
project, allocation of the capital investment etc. You may divide the costs incurred in acquiring the land,
labor charges for the construction of building, whitewash, cost on interiors such as woodwork, plumbing
and electrician work, fire safety equipment etc. The project report you submit should be a working
model of your school/college.

You also have to submit a business profile stating the work nature of your venture and number of
employees that you are planning to hire for your school/college.

You should also include the costs involved in preparing the forms and approved legalities. In other
words, you should clearly state the cause for the requirement of such an amount.

Trust Deed is an important document that you need to submit to the bank, in order to get funding
for starting a school. The Trust Deed should include Bye-laws.

To get loan for opening 10+2 school, you also need to submit the Income Tax Return (ITR) of all
the Trustees. You should submit the ITR of at least 3 years.

In case you are taking 10+2 school franchise, you need to submit a copy of the franchise
agreement document.

Last but not the least you need to submit credentials of the Trustees, stating their profile. The
profiles should include their respective address proof, ID Proof, PAN no. etc.

10 Things to Keep in Mind While Opening a CBSE

School
In India, CBSE schools are the most trusted brands for providing quality education. The Central Board of
Secondary Education (CBSE) grants affiliation to various schools like government or government aided,
private and public schools etc. according to its CBSE byelaws. Further, it gives the option of provisional,
regular and permanent affiliation. However, it is profitable to start your school with provisional affiliation
and meanwhile fulfill the norms or rules decided by CBSE to get permanent affiliation of your school.
If you are thinking to become one of the trusted brands of CBSE schools and worrying about how to make
this true; go through few important points below to prepare your checklist before opening a CBSE school:
1. Ensure that land you have selected for your school must be 2 acres or at least 1 acre for
metropolitan cities having population more than 25 lakh.
2. No objection certificate is the mandatory document that is required to get CBSE affiliation, this
has to be obtain from your state education department.
3. CBSE demands minimum 1sq.metre floor space per student in each classroom of your school.

4. The concerned trust or management should be of non - proprietary character. Further, duly
attested documents, by first class magistrate, are required to get the knowledge of how the
members are related or non- related with each other.
5. Your school should have suitable infrastructure including the furniture, office equipments, science
lab, a library with minimum 1500 books and a computer lab with minimum 10 computers along
with internet connection.
6. The school authorities should have adequate finances to pay salaries to the staff, not less than
the corresponding categories of employees in the State Government Schools.
7. Fee charge should be decided properly and must be according to the facilities provided by the
institution and under the heads prescribed by the Department of Education.
8. Admission of students in your CBSE School shall be made without any discrimination on the
basis of religion, race, creed and place of birth or any of them.
9. Your school should have proper sanitary conditions, drinking water and fire safety precaution as
prescribed by Municipal Authority of your area. It is mandatory to get a certificate from Municipal
and Fire Authorities, to attach with application form for CBSE affiliation.
10. There should be proper provision and facilities should be available for physically challenged
students in your school.
These are some of the basic requirements to be kept in mind while opening a CBSE school. Remember, it
is not a one day task. Instead, it is a consuming process. If you wish to become successful in this fruitful
business venture, then start your own school with our most trusted brand SHEMFORD .It is a
researched based organization with 23 years of experience in education fraternity. Our 7 star support
system includes training, recruitment, operational support, curriculum design and support, continuous
product development, advertising and production support and purchase savings.
If you want to open a CBSE school, fill up the Franchise Application Form.

5 Common Mistakes to Avoid While Opening a School

Starting a formal school in India involves huge investment of both money and manpower. You need to
shell out money and spend it on the required facilities, recruitment, publicity, completion of the legal
formalities etc. In the process, you should ensure that the money put into the project is spent
appropriately. It is not merely about reaping profits out of the venture. You also need to reap social
benefits as well, from the functioning of your school. Therefore, it is better to have a checklist of the things
to do while starting a school and ensure that you do not commit the common mistakes done in the
education industry.
Check how to avoid the top 5 common mistakes given below, if you want to start a school.

1. Starting Your School without a Business Plan

Starting your school without planning anything about the land, its location and its accessibility is the top
common mistake you should avoid, if you want to start a school. K-12 schools in India should not be
located in residential colony, as the government doesnt permit the construction of educational institutions
at residential colonies. In case the land you acquire is agricultural in nature, you need to get it converted
into a commercial or an institutional land. All these factors should be included in the business plan of your
10+2 school, which is the first step to take while opening a formal school in India. You also need to have a
plan while starting the construction of your schools building.
2. Not Forming a Trust/Society
It should be remembered that schools in India are run by registered Trusts/Societies as non-profitable
educational institutions. Therefore, you need to ensure that you do not start school without forming a Trust
or a Society. Even if you form a Trust, not registering it will be a mistake, because K-12 schools in India
need to be run by only registered Trusts or Societies.
3. Not Getting NOC from the Government
Not getting No Objection Certificate (NOC) from the government is a major mistake to avoid, if you want
to start a school. This is because it may not be feasible to start the construction of your school without the
respective state governments sanction.
4. Not Affiliating Your School to a Recognized Board
The functioning of your 10+2 school may be adversely affected, if you do not affiliate your school to a
recognized state Board or the CBSE. Even if you gain affiliation, not following the Boards norms for the
construction and facilities may affect its functioning.
5. Spending Too Much on Publicity
Spending too much on publicity can be both expensive and unproductive. You need to formulate an
advertising or a marketing campaign that would cover the strategic locations where your school can get
noticed and from where maximum queries for admissions can be generated. While launching your school,
ensure that the necessary staff has been hired, because launching the school without hiring Principal or
HM will send a bad notion about the casual attitude of your institution.

So, avoid the aforesaid top 5 mistakes before you start your school, so that your educational institution is
administered smoothly. If you want to open a school, fill up the Franchise Application Form.