In the world of education, ensuring seamless operations is paramount. Private schools often encounter financial challenges, especially during holiday breaks when students are away, resulting in a temporary halt in school fee collections. To address these periodic operational hurdles, Mint Credit introduces the Private Schools Short-Term Financing solution, tailored to meet the unique needs of educational institutions.
Understanding Private Schools Short-Term Financing
Private Schools Short-Term Financing is a financial lifeline designed to help private schools bridge the gap in cash flow that arises during student holidays. This innovative solution offers up to KES 1 million in unsecured loans with a one-month repayment term, which can optionally be extended to 3 months. With a focus on maintaining quality education, this initiative caters specifically to private schools that have been operational for a minimum of 3 years and possess a Ministry of Education Certificate.
Features and Benefits
1. Generous Unsecured Loan Limit: Eligible schools can access an unsecured limit of up to KES 1,000,000 (One Million) to cover their financial needs during breaks.
2. Competitive Interest Rates: Enjoy low interest rates of just 10% per month on the reducing balance, ensuring manageable repayments.
3. Flexible Repayment Period: Schools have a maximum repayment period of 30 days, with the option to extend to 3 months if needed.
4. Transparent Processing Fees: A 3% processing fee on the applied amount is deducted upfront, ensuring clarity in financial transactions.
5. Excise Duty: Note that there’s a 20% excise duty applied to the processing fee.
6. Insurance Coverage: A 0.76% per annum insurance fee is deducted upfront to provide added financial security.
7. Convenient Bullet Repayment: Repayment occurs upon reopening and the collection of school fees, aligning with the school’s cash flow.
8. Speedy Processing: Experience an expedient 4-hour processing turnaround time (T.A.T), allowing schools to access funds swiftly.
9. No Penalties on Early Repayment: Mint Credit supports responsible financial management; there are no penalties for early repayment.
To benefit from Mint Credit’s Private Schools Short-Term Financing, private schools must meet the following eligibility criteria:
- The school must be an operational private school.
- The school must have a minimum of 3 years of operational history.
- The school must possess a Ministry of Education Certificate, ensuring compliance with educational standards.
- The school must have an active Memorandum of Understanding (MOU) with Mint Credit for Checkoff Loans for their staff.
To initiate the loan application process, schools will need to provide the following documents:
- A fully filled online loan application form.
- 6 months of bank statements from the school fees collection account, offering insight into the school’s financial health.
- School registration documents, establishing the school’s legal status.
- Ministry of Education Certificate, confirming adherence to educational standards.
- Directors’ KYC (ID and KRA), ensuring the transparency and legitimacy of the school’s leadership.
- Post-dated cheques for repayments, facilitating the loan repayment process.
At Mint Credit, we understand the critical role private schools play in shaping the future. Our Private Schools Short-Term Financing solution is designed to support your institution’s financial needs, ensuring uninterrupted education during holiday breaks. Apply today to experience the benefits of this tailored financial solution and continue providing quality education to your students.