School Loans

Short and medium term loans or overdrafts, or lines of credit for financing school financial requirements including working capital like bridge finance for payment of teachers' salary, purchase of food stuffs, purchase of fixed assets like furniture, equipment, vehicles and financing infrastructural requirements like new construction extensions, renovations and/or repairs etc. Credit facility to a school can be run for a period determined based on the school needs and purpose, however for the case of government schools, the facility shall not exceed one year without a written consent from the Ministry of Education & Sports (MOE).

Main Features:

• Interest charged on declining balance.
• Loan amount depend on the school needs.
• Flexible and regular repayment plans.

Basic Requirements:

• Active Savings or Current account with the bank.
• School must be registered with the MOE.
• Letter of confirmation of ownership, whether public or private from MOE
• School should have been in operation for at least 3 years
• Registered resolution to borrow by the School BOG or BOD indicating the amount, purpose and security for the loan.
• Minutes of the Board at which the resolution to borrow was passed
• School must have an established business premise
• Audited financial statements for the period of 3 years.
• Personal guarantee by the Directors of the School.
• Inspection of collateral items intended for pledge as security
• Legal perfection of collateral and guarantees.

Benefits:

• Affordable interest rate.
• Flexible repayment plans.