Target group


Educational Institutions viz., Universities , Colleges , Schools


  • The institutions must have got necessary approval from Government / Government agencies for running the educational institution
  • They should submit 3 years audited financial statements
  • They should be profit making for continuous 2 years.
  • New and upcoming educational institutions can also be considered in which projections, both financial and non-financial, must be reasonable and justifiable.
  • Entry level credit rating is SBS 5. No deviation to be allowed.


  • Construction/ Renovation / Repair of building. Approval for construction/addition/alteration from all the concerned authorities must be in place for considering the credit facility.
  • Purchase of Computer, lab equipment, Furniture & Fixtures, books etc

Nature of facility


Term Loan

Quantum of Loan


Minimum Rs.10 lacs and Maximum Rs.500 lacs



Term Loan to be repaid in maximum 8 years inclusive of initial moratorium of 12 to 18 months. Periodicity of instalment to be determined on the basis of cash flow


Appraisal of loan


The proponent should have sufficient cash flow to service both instalment and interest.

DSCR should be minimum 1.25.



Minimum 20%

Rate of Interest


As per prevailing rate of interest structure in terms of HOBC:104/94 dt. 15-11-2010

Processing and Documentation charges

For accounts falling within regulatory definition of MSME : 
In terms of HOBC : 102/218 dt. 20-03-2009.
For accounts not falling within regulatory definition of MSME but within the new definition of SME :
In terms of HOBC: 102/119 dt.19-09-2008.