Benefits Of An Education Loan Against Property For Higher Studies

According to the National Sample Survey Office (NSSO, the cost of technical and professional education courses increased by 96% between 2008 and 2014. 

Expenses for higher studies in India and abroad are on the constant rise. Due to this reason, even the merit students have to rethink before opting for a course in within India or overseas. Besides, the dreams of pursuing higher education in the best of universities often stay unfulfilled from lack of financial assistance. That is when financial aid in the form of an education loan against property comes into the picture.   

With this credit facility, aspiring students can fulfil their dream, and once they start earning, they can initiate the repayment process. You can apply for an education loan for abroad studies from any leading financial institutions or NBFCs by meeting their eligibility requirements. 

In this article, you will get an idea of the benefits of loan against property for education –

What Is A Loan Against Property?

It is a process that involves mortgaging your property with your credit lender to avail funds against it, which can be utilised for studies.

You can pledge the following assets as collateral:

  • Residential property
  • Non-agricultural land
  • Commercial space

The only condition to avail such finances is to meet the education loan eligibility criteria and furnish the documents needed to apply.

How Can Loan Against Property For Education Benefit?

The significant benefits of LAP include –

  • Ample loan amount

A loan against property can provide you access to 80% LTV (loan to value) ratio of your property’s value. This translates to a significant sum so that the borrower can cover his/her diverse educational expenses. The same eliminates your dependency on multiple loans and sources of finances.

  • Lower interest rate

Considering other financial advances, an education loan for abroad studies offers you lower interest rates. If you consider opting for an education loan against property from NBFCs, you will be provided with competitive rates, which makes repayment convenient.   If you are planning for low-interest rates, the Moneylender Jurong East is the best option.

  • Extended tenor

To match the substantially higher credit amount, this advance comes with an extended repayment tenor. You can pick a loan tenor ranging up to 20 years – depending on the borrower’s financial portfolio. 

  • Quick loan processing

If you avail an education loan, you enjoy relaxed eligibility criteria and nominal paperwork to ensure your credit amount is swiftly processed and disbursed.

The sum is disbursed to your account within 72 hours, once your lender verifies your provided documents.

  • Pre-approved offers

Companies like Bajaj Finserv provide pre-approved offers to existing customers that make procuring loans quick and hassle-free. These pre-approved offers are applicable on personal loans, business loans, home loans among numerous other financial products. You can take a look your pre-approved offer by sharing a few necessary details like your name and contact number. 

  • Less stringent

Most education loan eligibility stresses on the fact that the candidate must be admitted to a university to avail this credit facility. On the other hand, loans against property provide you with a substantial sum with bare minimum eligibility criteria.

Even if the applicant is yet to be admitted to an educational institution, he/she can still avail this advance by submitting only a few necessary documents and by pledging an asset as collateral.

Eligibility Requirements And Documents Needed

To be eligible for an education loan, the applicant must be –

  • An Indian citizen 
  • A salaried or
    self-employed individual

You need to furnish the following documents to apply for a loan against property for education after successfully filling up the application form. 

  1. For salaried employees

Keep these documents at hand:

  • Identity proof such as
    Aadhaar card, PAN card or Passport, etc.
  • Address proof like Aadhaar
    card, Voter ID card, Ration Card, etc.
  • Latest salary slips.
  • IT returns.
  • Documents of the property
    to be mortgaged.
  • For self-employed individuals

Submit these documents after the application procedure:

  • A voter ID card or Aadhaar
    card for proving your identity
  • Utility bill, Aadhaar card
    or any other address proof issued by the GOI
  • Bank account statements
    for the past 6 months
  • Mortgaged property’s
    documents

By submitting these documents, you can enjoy a hassle-free and quick education loan approval. But you must have to meet the education loan against property eligibility for easy approval. Additionally, make sure to hold a credit score of 750 or above to become more eligible for the loan.