- Institutions have an irregular cash inflow spread over the whole year.
- Scattered fund collection results in inefficient use for the institution.
- Heavy costing of resources on collection of fees.
- Some amount results in bad-debts.
- Only few loan facilities available due to Trust/Society structure.
- Very high interest rate options available in the market.
- Heavy infrastructure cost & maintenance requires long-term financial planning.
Why EdCred for Institutions?
Scattered cash inflow gets consolidated to help fund capital expenditure & other future expansion plans
The funds can be deployed in Liquid funds/schemes to get significant returns and still be available for use at any point of time.
No deployment of useful resources in fees collection
Avoid difficult situations with parents regarding fees collection and thus, avoid any chances of bad-debts
Example (Figures taken are approximate & may vary for each school)
- School Fee = 1,00,000 payable in 4 quarters.
- EdCred School Discount = 10%.
- School gets in the beginning of the year = 90,000
- Parents pay monthly installment = 1,00,000/10= 10,000
Receive annual fees in the beginning of the year
Get relief from the responsibility of fee collections
Fees to be paid directly to the institution on behalf of the parent .
This loan is given to the institute against the immovable property after assessing the promoters/directors profile, school’s current cash flows, income & expenses.
Example (Figures taken are approximate & may vary)
- Total Loan amount = 50,00,000
- Tenure = 5 year
- Rate of Interest = 16%
- Processing fee = 1.5%
- Total number of EMIs = 60
- EMI Amount = 1,21,590
Loan Amount- Upto 2 Cr
Tenure- Upto 7 years
Processing Fee-1.5%- 3%
Interest Rates- 16%-22% (Reducing)