JS School Development Finance – Enriching your Educational Institution!
Through JS School Development Finance, we offer educational institutions financing facility of up to Rs. 50 million to meet their operational and development requirements. Through this product, JS Bank is striving to enhance the quality of education across Pakistan by providing institutions with the means to engage professional faculty, develop infrastructure and educational delivery systems. Schools with a minimum monthly turnover of Rs. 1 million and which have been in operation for over 3 years are eligible to apply for this term loan facility. JS School Development Finance offers the following facilities:
- Financing – Between Rs. 2 million and Rs. 50 million
- Equity – Minimum 20% of the financing amount
- Financing Tenor – Between 3 and 5 years, with easy and convenient repayment in monthly / quarterly installments
- Insurance – Property, equipment, assets insurance is mandatory, offered through reputable insurance partners at a preferential rate, where applicable.
- Processing fee – One-time fee of minimum Rs. 5,000/- or 0.5% of loan amount (whichever is higher)
Various Uses and Advantages!
Through this service, institute can undertake the following activities to provide quality education.
- Expanding the institution’s network
- Meeting working capitals requirements, allowing flexibility and smooth cash flows
- Technology Upgrade
- Teacher development programs & other non-financial services
- Development of school portals
- Cash management solutions
Financing rates awill be calculated as per the following criteria:
|School Operation Expenses (OpEx)||Floating Rate (Quarterly Payments)*||Floating Rate (Monthly Payments)*|
|Between 3 and 5 years||3-Month KIBOR + 8%||1-Year KIBOR + 8%|
|Between 5 and 7 years||3-Month KIBOR + 6%||1-Year KIBOR + 6%|
|More than 7 years||3-Month KIBOR + 4%||1-Year KIBOR + 4%|
Individuals owning an educational institution are eligible to avail this product once they fulfil two separate criteria. The first set of criteria relates to the owner of educational institute, whereas the second set of criteria relates to the education institution and its characteristics.
Eligibility Criteria for Owners/Partners of Educational Institutes
Owners/partners of educational institutions are eligible to avail this loan product once the following criteria is fulfilled:
- Have a Bachelor’s degree or minimum 5 years of work experience as a manager in an education institution.
- Individual Assessment
- Cannot utilize 2 loans from JS Bank for education finance facility
- Supporting documents as per the type of organization to be submitted as per Bank’s requirement
- For sole proprietorship, the owner must be at least 30 years and at the time of maturity of loan his/her age should not be more than 65 years of age. If the owner is over age, then a replacement client (blood relative or spouse) is allowed, only if the replaced relative is fully engaged in running the education institution
Eligibility Criteria for Education Institutions in First Loan Cycle
The education institution must meet the following criteria to be eligible for JS School Development Finance:
- Associated and licensed with Private Schools Associations
- Have been in operations for at least 3 yeasr. However, the minimum time period of operation is only 12 months when for example an existing and well established institute is opening a new type of school catering to a different segment
- At least 30% of the school’s teachers should be graduates
- Minimum monthly turnover of Rs. 1 million
- Basic infrastructure of the school should be present
- Ability to repay the monthly/quarterly installment amount as calculated according to the income assessment criteria
- Must have remained in the same premises for the last 12 months
- Must have an active rent agreement in case of a rented premises
- Client cannot sell his/her educational institute or change the premises during the loan tenure
The collateral for the facility would be mortgage of property (preferably residential, or commercial). Third party collateral would not be acceptable. Moreover, in addition to the mortgage of property, the following collateral is also required:
- Personal Guarantee (s) of Proprietor, Partners and Directors
- Post-dated cheque(s) covering full/principal limit amount plus mark up for six months. The number of cheques will vary between 2 to 10 cheques depending on the loan tenure
- Collection of school fee through JS Bank & authority to collect monthly/quarterly installments from the fee collection account
- Margin on property will be based on Forced Sales Value (FSV) as per prescribed regulations
Valuation of securities against loans would be conducted by the bank’s approved panel
Requirements from Customers
- Audited Accounts (Financial Statements) / Wealth Tax Return, as per SBP regulations
- Supporting Documents / Undertaking to be obtained for proper utilization of loan
- Personal Guarantee of the owners / directors (only sponsor directors in case of limited companies)
- Two (2) recent Passport size Photographs
- Copy of CNIC / NICOP
- Filled Request Application Form
- Processing Fee Deposit Slip
- Active rent agreement (in case of rented premises)
- Any other requirement of the Bank
Visit your nearest JS Bank branch to get your Educational Institute financed through JS School Development Finance!