It is the endeavor of every individual to be educated to lead a meaningful life. The process of education starts in childhood with a Playgroup School, that grooms tiny tots for entry into reputed schools. Once schooling is over the students, move to college and university to complete the process of education and begin their professional lives.
The Importance of Coaching Centers:
During this process, starting from the school, tuitions and coaching classes start playing an important role. The system is much in demand as the meritorious students join them to further their prospects of higher marks, while the other students join to gain greater insight into the subjects which is routinely taught in school.
There is a bigger organized market for coaching centers that groom candidates for various competitive exams, maybe for entry to renowned colleges or institutes of repute or even for landing good employment.
The Set-Up of a Coaching Center:
It is the job of the coaching center to bridge gaps in a student’s education in such a way that they gain an edge not only to excel in the boards and university exams but also crack various entrance tests that a student has to face in life.
There are a host of entrance exams in the country opening up opportunities in higher education, preparation for which requires a focused approach. It is here that the coaching centers play an important role.
Let us check what takes to establish a viable education enterprise.
- Location: It is the most important component. A peaceful environment easily accessible by students is an ideal spot for the center.
- Infrastructure: It is vital to provide for adequate class space, parking, digital laboratory, and office space for the administration of the outfit. The set up will also need to be provided with basic amenities like water and washrooms.
- Faculty and Staff: This is the most crucial aspect of a coaching center. The reputation of the center will largely increase when the faculty can deliver results epitomized by high success rate of its students.
- Marketing: However good the results may be, it can all come to naught if there is no promotion of the enterprise. You need more students flocking to your center to generate higher profits. There are various means of promoting, to list a few are:
- Distribution of well-designed
- Abundant use of social media.
- Insertions and ticker messages in the print and visual media, respectively.
The Business Model of Coaching Center:
The scale of operations and the business potential form this industry is reflected in the fact that the higher education system in the world is the largest in India, with over 70 million enrolled students.
Investing and funding a coaching center has the potential to yield good returns. It is thus important to chalk a road map for not only running a successful enterprise but also to help raise funds to run the business.
It makes sense to study a proper business model for the center which will help it to attract funds: Let us check out the steps.
- Prepare a Viable Project to fulfill the requirements of lenders
- Decide on a syllabus to provide an edge to students enrolling at the centre.
- Arrange for top-class study facilities, including setting up of classrooms.
- An adequate supply of study materials.
- Well equipped laboratory with ample computers, Wifi, and Multimedia options.
- Compliance of legal formalities like registration, licenses, and agreements.
Business Loan Options for Coaching Centers:
In India, traditional lenders comprise Banks and NBFCs. Of late, the advent of Fintech companies like Lendingkart has transformed the provision of small business loans with innovative products to attract a host of business enterprises that are comfortable in new-age techniques.
Some such companies have tailored loan options for educational business institutions and coaching centers as long as they can satisfy them with reasonable cash flow. The loans can help borrowers in achieving the following:
- Acquire quality premises.
- Hire top class faculty
- Earn goodwill through advanced teaching principles and methodology.
- Upgrade infrastructure
- Streamlining cash flow through a suitable working capital loan.
Benefits of Business Loan from Fintech:
As already discussed, small business loan from Fintechs carry certain pros. Let us check them:
- Tailored finance options on competitive terms.
- A liberal documentation regime.
- Speedy turnaround in the processing of loan proposals.
- Minimum operational vintage of specified period.
- Minimum enrolment of 100 students.
- Healthy operational income and Committed Management.
- Good credit track record.
Purpose of Loan:
- Purchase/leasing of premises for a coaching
- Construction of rooms and other amenities.
- Acquisition of adequate furniture and fixtures.
- Purchase of hardware and software.
- Liquidation or transfer of existing credit facilities.
- Duly completed application form.
- KYC documents of the promoter and the business, including PAN card.
- Financial statements for specified periods defined by the lender.
- Aadhaar card of the promoter.
- Related business documents like certificates and licenses.
Application Process for Coaching Center Business Loan:
- Submission of loan proposal in the form of an application.
- Provide all the requisite documents sought by the lender.
- Await sanction of the loan after due evaluation.
- Disbursal of a loan with credit to the account.
Fee and Charges applicable on loan:
Competitive up to 27% per annum
Up to 60 months at the maximum
Nil up to 25% of the loan amount
NEFT / RTGS