Finance - New Loan Scheme
8 December 2015
New Loan Scheme and amendments to the Scheme for Financing Schools.
The School Loan Scheme has been in place for a number of years and has given many maintained schools the ability to take out a loan from KCC to help finance major purchases that otherwise they would not be able to afford. It has always been a popular source of funds enabling schools to make improvements that benefit current pupils rather than having to wait for the funds to be saved.
The original scheme agreed to lend up to a maximum of 30% of the combined net surplus of maintained school balances. This scheme has now closed as the maximum lending has been reached.
However, Kent County Council and the Schools' Funding Forum, realising the importance of this funding source, have agreed a new loan scheme. This will begin on 1 December 2015. Interest will be charged for these new loans at 1% above the Bank of England base rate and there will be an administrative charge of between £200 and £500 depending on the size of the loan. These loans are only available to maintained schools. Further details are available in the Financial Control page on Kelsi.
Terms and conditions for all existing loans will remain the same.
The facility for schools to produce loan quotes for illustrative purposes only will be available on Kelsi from January 2016.
There are some other directed revisions from the Department for Education, amendments to reflect best practice and minor cosmetic changes to the Scheme for Financing Schools. These were all agreed at the Schools Funding Forum on 20 November 2015 and the scheme is available on Kelsi.
Contact Details
Schools Financial Services
Telephone: 03000 41 54 15
Email: schoolsfinancialservices@kent.gov.uk