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What Can A School Do With 50 Lakh Worth Unsecured Loan

A well-rounded education system nudges student to explore avenues beyond the confines of academic excellence. This is the reason why parents seek private schools that can offer state-of-the-art education infrastructure to match international standards for their children. In today’s competitive environment, schools have to invest in innovative ways to aid comprehensive development of their students. Unsecured business loans provide a quick and hassle-free financial solution to deal with the associated expenses.

For the uninitiated, an unsecured loan is a loan issued without requiring any collateral or security from the borrower. Online lenders and non-banking financial companies (NBFCs) can lend up to Rs. 50 lakhs to eligible schools after verifying the requisite loan application documents.

What next? Here are several ways a school can utilize a 50-lakh worth unsecured business loan.

School Building Construction:

One of the allures of private schools is a favourable teacher to student ratio. Small sized classes allow teachers to focus on the progress of individual students. In order to maintain this ratio, schools need to expand their infrastructure to match the corresponding influx of new admissions. A 50-lakh loan for private school will enable it to build classrooms, faculty lounges, canteens, and other required spaces.

Renovation and Repair:

With an average of 200-250 working days, schools undergo a lot of natural wear and tear and require regular maintenance to keep up with safety regulations. The total cost may vary depending on the undertaken course of action. NBFCs like Lendingkart.com are the optimal funding sources for cash needed to carry out urgent repairs and renovation of the school campus and property.

ICT Resources:

The education industry is rapidly shifting towards Information and Communication Technology (ICT) oriented teaching methods. This includes using digital learning resources like educational tablets, licenced software, online curriculum management systems, smart class equipment, etc. The cost of educational tablets ranges from Rs. 5000 to Rs. 18000 per unit. Eligible academic institutions can quickly procure up to 50 lakhs of business loans in India through digital portals to cover the cost of this one-time investment.

Building and Furnishing a Science Laboratory:

A fully equipped science laboratory adhering to regulated safety standards is a necessity in secondary and higher secondary institutions. Separate lab kits are required to support different subjects like physics, chemistry, and biology. A 50-lakh unsecured loan is sufficient to build and furnish multi-purpose laboratories with effective storage and flexible design.

Computer Laboratory and Campus Connectivity:

Setting up a computer laboratory requires a substantial amount of money. An unsecured business loan for a private school can be used to purchase and install IT infrastructure such desktop computers, printers, multimedia equipment, and licensed software. Schools can also use it to establish or improve connectivity with campus-wide LAN and PA systems.

Sports Facilities:

Co-curricular activities like sports and games are an integral part of school life. Schools can apply for an unsecured business loan to upgrade their sports facilities. These include construction and maintenance of appropriate spaces where students can practise indoor sports like basketball, badminton, table tennis, swimming, etc. as well as outdoor sports like cricket and football.


Every school needs a well-designed auditorium with good acoustics, stage lighting arrangements, and a sound system. It is a space that can be used to hold school assemblies, public lectures, theatre productions, and award ceremonies. The average cost of building an auditorium is Rs. 1800 – 2300 per square feet. A loan of 50 lakhs is good enough to build an auditorium large enough to accommodate a sizeable audience.


Safe transport for pupils is a primary service offered by private schools. Maintaining a fleet of vehicles allows institutes to not only overlook the safety of their students but also ensure that they reach school on time. Starting from Rs. 7 lakhs for vans or minibuses and going up to Rs. 50 lakhs for larger buses, the cost depends on the type, size, brand, and condition (new/used) of the vehicle. After approval, NBFCs can disburse a collateral-free loan for private school to buy the required means of conveyance.

Administrative Services and Miscellaneous Development:

With an unsecured business loan of up to Rs. 50 lakhs, the borrowing institutions can increase their transparency and efficiency by streamlining their administrative services. Customized ICT backed solutions can be used to create individually designed School Management Software. Such management tools keep track of student and faculty data and also other tasks like accounts, recruitment, transport, etc.

Schools may also require funding to launch various development projects as and when the need arises. Restocking teaching equipment, introducing a meal plan, setting up a uniform and stationery store on campus are some examples.

Thus, with a clearly stated purpose, educational institutions can promptly get business loans in India with flexible EMI options and minimal processing charges with the help of online lenders.

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