Top 10 Reasons Why Private Schools Take Loans

To provide quality education, private schools in India must have cutting-edge infrastructure and well-planned facilities. This is even more important now because the generation currently in schools is growing in an environment of mobile computing devices and e-commerce. Since private institutions are entirely dependent on their own earnings to improve their campus, they may need school loans to finance such expenses.

Let us look at the top reasons that drive schools towards taking loans from banks and NBFCs:

1. To construct a new school building

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Loan for construction of school building is commonly sought by institutions that are successfully providing education services but need more classrooms to accommodate the increasing number of students. Adding more sections for each grade is also a good idea when schools are focused on keeping a low student:teacher ratio.

2. To build a playground/sports court

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School loans may also be required to add a playground, basketball courts, tennis courts or rooms for indoor sports. Games are an essential part of school education, and if a small unsecured loan from an institutional lender can help to build a beautiful playing field, the investment is worthwhile.

3. To develop a laboratory

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Schools need to have well-equipped labs for practical experiments concerning physics, chemistry, biology and to give students hands-on experience with computer studies. Some private schools are also required to have Home Science labs as per the curriculum for their students. A quick loan for school laboratory can be procured at easy terms from a FinTech lending company. Such lenders usually provide up to Rs 50 lakhs on loan for building school laboratory.

4. To buy furniture for classrooms, staffroom

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A simple reason to apply for a loan could be the purchase of new or additional furniture for students and staff. The cost of ergonomic desks and chairs may not be within the budget of the school, and financial support from a FinTech company can come in handy.

5. To purchase commercial vehicles

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Schools that provide transportation services to their students and staff may need to buy new buses or vans. If adequate finance is not available for such purchases, FinTech lenders can offer simple digital modes to provide unsecured loans with flexible repayment options.

6. To build or improve a library

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Well-stocked libraries are essential components of any school’s infrastructure. A school that has been running successfully for some time, but does not have a library, can borrow funds from school loan companies to build a quality library on its campus. Unsecured school loans can also be taken to buy stocks of new books that are too expensive to purchase in the available library budget.

7. To start a new facility on premises – stationery/canteen/uniform shop

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Private schools try to offer all the essential facilities for the convenience of students. If there is a stationery unit on the campus, students can purchase prescribed textbooks and other essential items without having to visit markets. A shop for summer and winter uniforms makes it easy to buy the exact uniform as required by the school. While canteens are not “must-haves”, they are good to provide hygienic menu options to the students and staff. School loans may be taken to fund such facilities.

8. For repairs and renovation

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A school that already has structures or facilities for education and sports may also need a loan to repair, renovate and improve them. It can digitally apply for such funds on a FinTech company’s website.

9. To purchase new teaching devices, audio-visual equipment

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School loans fund the purchase of interactive teaching devices that are becoming increasingly important in the digital age. Educational institutions can borrow to install whiteboards, overhead projectors and other audio-visual teaching aids to make learning more interesting for their students.

10. To add/improve day-boarding facilities

Some private schools offer day-boarding amenities to their students. As a part of this facility, they need to provide healthy meals and areas for rest and recreation. To build and improve such environment, they may need loans that are offered most conveniently from FinTech companies.

As a leading digital NBFC offering loans to educational institutions, Capital Float funds all such requirements of schools in India. To know more about our financing products, feel free to call us on 1860 419 0999.

Apply for Unsecured school loan

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Features of Pay Later: A collateral free loan with multiple drawdowns

Pay Later is a unique loan product that was conceptualized and created by Capital Float, keeping in mind specific needs of Indian SMEs. This product is exclusively available at Capital Float. With Pay Later, a borrower is given a predefined credit limit, post which the borrower can make multiple draw-downs from the approved limit. The limit is reinstated upon repayment by the borrower. Interest is charged only on the amount utilized and not on the entire limit. These amounts can be used to make payments to suppliers. Click here to read more about this innovative product.

Pay Later: Features

1) Flexible draw-downs

You’re never obligated to utilize the entire credit limit in one go. In fact, you can always utilize a portion of the total amount sanctioned at any given point in time. To help you monitor your transactions, we recommend that you use our mobile app and manage your repayments accordingly. The mobile app keeps you updated about the draw-downs created and the limit currently available to you. More importantly, this loan amount is not consumed at once, but is a repetitive credit facility which can be used multiple times. The cycle of draw-downs, replenish and reset continues as often as you want it to.

For instance, if you have been assigned 1 lakh rupees with Pay Later, you can make up to 4 draw-downs of 25,000 rupees each and use these funds to make payments as and when necessary. By repaying the amount used, you immediately reset the credit balance, enabling the usage of funds once again. This leads to a rolling balance of funds that can be used and replenished as per requirement, giving the businessman the agility to do business unlike ever before.

2) Interest applicable only upon draw-down

Traditional loans levy a fixed interest on the entire amount sanctioned. With Pay Later, you’re required to pay interest only for the amount utilized. This means that the pre-defined interest rate is applicable only on the portion consumed and not the entire limit.

For example, if you’ve used only 25% of your credit limit, then you will be charged interest on the 25% used and not the entire credit limit.

3) Payments to distributors/suppliers at the click of a button

You can make payments with just a few taps on your smartphone via Capital Float’s convenient mobile app. You can download this app from the Play Store and the App Store for free. Upon downloading the app, you can login using your username and password. These details are provided to you at the time of your loan application. Following the login, the home screen would show you the credit limit assigned to you. Then on, you can create tranches based on the payments you need to make. Whenever you make a payment request, all you need to do, is take a photograph of the invoice with your mobile phone and upload it onto the app to avail funding.  Within 24 hours, the vendor receives the payment that you requested.

4) Convenient repayment at the end of 30/60/90-day loan term

Instead of a conventional EMI plan that may burden you at the end of every month, Pay Later allows you to choose the repayment duration as per your business cash flows. Our easy, flexible plans work in accordance with your bullet repayments at the end of 30/60/90 days, so that you’re never bogged down by hefty monthly installments.

5) Zero collateral

Pay Later is a collateral-free credit product, meaning you don’t need to mortgage your property, business or personal assets, etc. to apply for the loan. All you need to do is submit the necessary documentation and choose repayment terms that are most suitable to your business. Click here to know more about the documentation required and the eligibility criteria.

Related: How to Get Collateral Free SME Loans for Your Business in India

6) Quick, hassle-free online application procedure

Traditional financial institutions take up to 8-12 weeks to disburse a loan. Additionally, the tedious procedures involved can burden the SME and slow down business responsiveness to opportunities. This is where Pay Later comes to your rescue. A mere 10 minutes is all it takes to fill out the online application form and to submit the necessary documentation. Through our data-driven competencies, we assess your eligibility and offer you a customized line of credit within 72 hours.

7) Get credit of up to Rs. 25 Lacs

With Pay Later, you are eligible for credit of up to Rs. 25 lakhs, which ensures that you’re never short on funds when you have to respond to a lucrative business opportunity. The exclusive facility of multiple drawdowns provides you with a higher access to working capital. By replenishing your credit limit, you can access the funds in real-time. This boosts your ability to do business leading to higher revenue.

Take your business to the next level by choosing Pay Later! Click here to get started.

Watch this video to experience the success story of Mohammad Ali Zeeshan, a travel agent who expanded his business by using Capital Float’s ‘Pay Later’.

Oct 24, 2018

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Digital Marketing for SMEs: Business without boundaries

Information availability and decision-making is becoming increasingly dynamic in nature. This constant state of change has impacted customer expectations and many organizations are grappling to keep up. Amidst this chaos, a few companies have found opportunities and strategies to leverage this change.

Most companies which are successful in understanding and fulfilling new-age customers’ expectations have exponentially grown and created very strong value propositions and brands in the minds of the customers.
Some proponents of change defining the business ecosystem today are big data, cloud computing, mobile and content. Digital Marketing as a science, art or technique sits right in-between all of these factors. Is digital marketing complex and difficult to understand? Is it a type of marketing that only large companies with large budgets can afford to execute? Read on to find out.

In many ways digital marketing has democratized business reach to consumers. It has presented a level playing field for small and large brands alike. This is one platform where intellect and ingenuity trumps everything else.
Applications of digital marketing are aplenty – from exploring new markets to growing a stronger brand in existing markets, all in a budget that you can decide and control in real-time.

In this day and age, the question isn’t whether you should do digital marketing, but rather, the pertinent questions are “how” and “where to start from”. Following are 5 simple things small businesses can implement to mobilize their digital marketing:

1. Website for E-Commence and Product Catalog
A website is just like a salesperson. It may need attention and hand-holding early on, but over a period of time, it becomes independent, yielding a steady stream of income. Do bear the following aspects in mind while building your website:
• Does your website have all the information that you would like your customers to know?
• Does your website provide your contact details in case the customer wants to place orders or make enquiries?
• Is it easy for the customers to navigate and find information about your brand and products?
• Is your website persuading customers to take specific actions?
• Is it easy to update information on your website?
Once you have all the content ready for your website, you can use one of the many website builders to set-up the framework. Most of these builders offer plenty of templates and customization options. In case you plan to sell your products online, some of the payment gateway companies can offer to set up the infrastructure for free. Sounds complicated? It’s not. You needn’t be a software geek to implement a fully-functional website.

2. Create local awareness about your business
It is quite possible that some of your prospective customers, even though located very close to you, may have never heard about you. Even if they have heard of you, they will resort to searching information about you on the internet.
Facebook and Google provide you with options to create local awareness and an identity on the internet. You can even place your business on Google maps to help customers locate you. All of this at little or no cost.

3. Catalyze word of mouth with referral schemes
Very few marketing campaigns can outshout the voice of a customer operating as a brand ambassador. While social media can intensify word of mouth, it takes experimentation and genius to go viral.
Win-win referral schemes help you achieve similar results with greater certainty.
There are plenty of plug and play tools which can help set-up referral schemes, leverage your customer’s social network and give your brand a fair chance of going viral. You can track and manage these schemes on the go. Much like your website, these tools are very easy to implement.

4. Advertise on Digital Media
It would be wise to advertise online if a good portion of your customers reside on the internet. Digital advertising unlike conventional advertising is highly targeted and permits small spends. You can choose from promoting your brand in existing markets to exploring new opportunities in new locations, all at the click of a button. And the good news is, all major online advertising platforms provide advertisers with account managers to help them set-up and run marketing campaigns. If you are lucky, you may even find free coupons to run your campaigns.

5. Email-Marketing to connect with your customers
Emails are a very convenient and effective way of communicating to your customers. You can use emails to inform your customers about new products, features and offers. Free guides and manuals can help your customers use your product better.

E-mail provides for two-way communication; feedback enables you to know if your email was received with a smile or a frown.

Much like this blog, you will find plenty of guides, free tools and services that can help you execute digital marketing. It may be tempting to do all of the above or possibly more to join the digital business bandwagon, but begin by evaluating your options and strategizing accordingly. If executed well, one or two targeted options are likely to provide better results rather than a scatter-gun approach.

Hope these points demystified digital marketing for you. So go on, roll up your sleeves and get ready to build a business without boundaries.

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Samarth is a marketing professional with expertise in Digital Marketing. Lead generation, customer engagement & retention, brand building and people development are some of his areas of interest. During his leisure he likes hanging out with friends & family, riding his bike to nearby destinations (sometimes even without a destination), watching movies​ ​​and reading.

​Samarth is a Marketing Manager at Capital Float.​

Oct 24, 2018

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How WhatsApp Business is Useful for Small Business Owners

As the past couple of years witnessed a drop in data costs, WhatsApp has successfully replaced the traditional offline messaging service as the primary mode of text communication in India. Leveraging this fact, this messaging platform launched WhatsApp Business – the pilot for a dedicated mobile app exclusively for businesses – in early September 2017.

Since its launch, popular brands in India such as BookMyShow and MakeMyTrip have been using this Facebook-owned WhatsApp business strategy to connect with their target audience. Though there are many apps that cater to business users, a messaging platform like WhatsApp provides a wider scope for a larger number of businesses, be it the local grocery store, professional services, medical institutions and even the government.

Features:

  • FREE OF COST
    You read right! WhatsApp Business lets you list your business and contact your customers at absolutely no cost. With a popular messaging app enabling business owners to send service messages for free, this could mean a gradual decrease for the conventional, but costly SMS facility. This WhatsApp business plan also counters the need for SMEs to create a mobile presence by designing smartphone apps, a distinct advantage for young enterprises from a cost and complexity perspective.
  • DESCRIPTIVE BUSINESS PROFILES
    If you own a small business without a website, WhatsApp Business allows you to describe your business in detail, and you can fill in addresses, contact numbers, social media links, etc. that lets your clients know more about the nature of your operations. The app takes verification seriously; a green tick appears against the name of your business when WhatsApp Business has corroborated the details you had provided.
  • MULTIPLE MESSAGING OPTIONS
    This unique feature of customized reply settings on WhatsApp Business ensures that you are customer-ready at all times. The ‘Quick reply’ option lets you set up standard responses to frequently asked questions. To all new leads who get in touch with you, the ‘Greeting message’ can introduce your business and what makes you different. You can also frame a custom ‘Away message’ for communications during off hours or when the small business owners are busy.
  • BUSINESS ANALYTICS
    More communication also means more data, which can be leveraged to understand your customers better. WhatsApp Business offers messaging statistics, a feature that provides metrics on the number of messages that were sent, delivered and read. Using this information, you can analyze the frequency of response from your leads or customers, modify the content of quick replies and experiment on the strategy of communicating with them.
  • WHATSAPP WEB SERVICES
    WhatsApp Business supports its projection via WhatsApp Web, which lets you manage the service through your computer without the mobile app. It provides additional efficiency when interacting with clients and partners, and leaves automation possibilities open as the system grows.

Setting up WhatsApp Business

WhatsApp Business in India is present only on the Play Store; so you will need an Android smartphone to use the app. As every WhatsApp account can be linked to unique mobile numbers, you register on this WhatsApp for business by using your official business number or your office landline.

Keep these ready before you set up the WhatsApp Business app, the steps for which are given below:

1. Backup your chat data to cloud storage if you already have a number which is primarily used for business with WhatsApp. Click on Chats>>Chat Backup>>Backup to upload to the cloud.

2. Download the app from the Google Play Store, install it and then launch it by tapping on the new WhatsApp Business icon.

3. Enter your business phone number that will be used to communicate to your customers, and verify it using the SMS (for mobile phones) or ‘call me’ option (for landlines).

4. Restore the previous chat related to the number once verification is complete (from Step 1).

5. Fill the name of your business and from the chat section, tap on the menu button and head to Settings>> Business settings>> Profile. Here, you can fill in all the details that you want to share with your customers.

What’s in it for small businesses?

WhatsApp Business is extended only to small businesses, an exclusivity that budding entrepreneurs can use to their advantage. The WhatsApp for business marketing aims at streamlining and extending the reach of small businesses without making hefty investments in website development, mobile app creation, customer support, and more.

Moreover, it helps notch up the idea of personalized marketing, as you can use the app to share images of products and promotions periodically to your loyal band of customers. The WhatsApp Business app also offers credibility to small businesses – a green tick against the name of your enterprise verifies the genuineness of your services and operations, an aspect that will help a majority of SMEs to reach out to a wider audience.

There are nearly 230 million WhatsApp users in India, and the fact that everyone knows how to use this WhatsApp for business use eliminates the time required to learn the nuances of a mobile application for businesses. Thus, WhatsApp Business is a ground-breaking solution to the communication and marketing needs of small businesses. We expect the introduction of WhatsApp Payments to act as a catalyst for this business with WhatsApp option to implement artificial intelligence, data analytics and voice recognition technology to optimize it into a powerful sales and marketing channel for small businesses.

Oct 24, 2018