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Shiksha Prasar for Institute
Eligibility :

All Registered Trusts/Societies/Companies imparting academic/professional education by establishing Schools/ Colleges and other educational/professional institutions affiliated with any of the recognized Boards of Central/State Governments/competent Authority/University etc. and Schools up-to class VIII.

Purpose :
  • For construction of School/College/Institute building, boundary wall, hostel, staff quarters, laboratory, indoor/outdoor sports court/ground, construction of swimming pool etc.
  • For purchase of constructed buildings for the activity.
  • To purchase laboratory & other equipments, furniture-fixtures, Library books, computers for lab, sports goods, vehicles, and medicines for School/College/Institute dispensary, D.G. sets and also to establish Gym etc.
  • To purchase additional land for expanding building, playgrounds and other related activities.
  • To takeover existing credit facilities from other Banks/financial institutions provided the accounts are regular and in standard category.
  • To meet other running expenses of school/college/ institution, pending receipt of fee/charges from students.
  • To meet other expenses of repair, renovation, upkeep and maintenance of the building etc. of the school/college/institute subject to maximum amount of loan upto Rs.50.00 lacs or 25% of value of land, building and other fixed assets of school/college/institute, whichever is less.
  • For purchase of new vehicles (Four wheelers) linked to the activity.
Nature & Amount Of Facility :

Demand /Term Loan / Overdraft : Maximum Rs.1000.00lac. However OD facility to be restricted within Rs.100.00lacs and should not exceed 50% of fee collection of the previous year or expected fee collection of the current year as the case may be.
Financing for vehicles to the existing borrowers having satisfactory track record may be considered even without collateral security by the authorities under their respective DLP. However in such cases the minimum margin should be 25% (strictly) and the exposure to the borrower including the proposed facility should be within the ceiling of loan amount.
Bank Guarantee : As per requirement of the borrower.

Margin :

Demand / Term Loan : 35% of cost of construction.
25% of cost of other assets i.e. furniture-fixtures, D.G. Set, computers, lab equipments, library books etc. to be acquired.
Overdraft : NIL.
Bank Guarantee : Minimum as per delegated power.

Rate Of Interest :

For Demand / term loan : Base rate + 4.00 % with monthly rests.
For Overdrafts : Base rate +5.00% with monthly rests.
For Bank Guarantee : Commission as per Bank’s rule.

Application for Financial Accommodations