Overdraft Facility
IESC provides affordable and flexible credit facility (OD facility) to Schools and institutes to manage sudden cash crunch, working capital needs, business growth and expansion. This is a short – term credit facility which needs to be settled on or before the predetermined due date. The interest rate for the OD facility will only be charged on the utilised amount and the time of use.
Product Details
Features
- High Over draft limit – The credit facility depends on the business requirements; it varies lender to lender.
- EMI options (Tenure) – There is no EMI, this is a short-term credit facility which needs to be settled on or before the predetermined due date.
- Interest Charged- Unlike a loan, you don’t have to pay interest if you don’t utilise the overdraft facility. Interest is only charged on the amount borrowed and for the duration of the borrowing period.
- Collateral- Subject to financier guideline
- Flexible renewals- Opt out of the school overdraft facility or let it be continue as per your school needs.
Purpose
- To fulfil your OpEx (day to day operational expenses) needs
- To manage sudden cash crunch.
- Short- term operational requisite.
Eligibility
- School recognized by State or Central Board
- Positive Cash Flow. Underwriting based on actual cash flow analysis of the school, rather than analysing the traditional way of approving loans.
- Committed Management.
Documentation
- KYC Documents –ID proof, Residence proof & Pan card
- Banks statement – Individual, Society, Trust, School
- Financial documents – ITR / Audit report (If applicable)
- Constitution Documents – Bye-Laws of Society / Trust, Member list, Copy of recognition and affiliation certificates.
- Udyam Registration Certificate Number – you must have a valid Udyam Registration Certificate Number obtained through the ministry of micro, small and medium enterprises.