According to data presented by the Reserve Bank of India, the number of Indian students studying abroad has increased considerably in the last few years. This is demonstrated by an increase in spending by students on tuition and boarding abroad from about $1.9 billion in 2013-14 to about $2.8 billion in 2017-18.
Now, the increase in this trend among Indian students to pursue their higher education abroad has also been facilitated by the easy availability of advances from various financial institutions in the country. By applying for an education loan against property, students can easily avail substantial funding to cover the expenses of their education abroad.
Following is everything you need to know about how to get education loan against property and how to maximise the benefits from it.
What Is Education Loan Against Property?
A loan against property is a secured advance that has no end-user restriction. The loan sum can be utilised to cover multiple financial requirements including higher education. When it comes to loan against property vs education and which one is better for you, the former provides more advantages.
For instance, an education loan can be utilised only to cover the tuition fees, or fees which are officially labeled by the educational institution. But with an education loan against property, you can cover all expenses related to travelling, boarding, staying, etc. abroad for studies.
Thus, for students applying for a higher education loan abroad, seeking this advance can provide much more comprehensive coverage for their expenses.
How To Get An Education Loan Against Property?
There are a few things you should know before applying for this advance. These are as follows –
- Eligibility criteria
The eligibility criteria to avail this advance vary from one lender to another. However, most of them set the criteria concerning parameters like an individual’s age, employment status and nationality. For instance, most financial institutions require individuals to be –
- Between the age bracket of 30 years to 60 years,
- An Indian resident, and
- Employed with either an MNC or a private or public sector company.
Additionally, individuals who are self-employed need to have a regular source of income to be eligible for the loan. Note there are certain specific guidelines respective to the property to be mortgaged which you will have to meet.
- Documents required
To avail of this advance, individuals have to submit a few stipulated documents. These include KYC documents, income proof and the official papers of the property to be mortgaged.
- Online application process
Most financial lenders have made the facility of online loan application available to borrowers to make the process hassle-free. With online application, borrowers only have to submit the requisite details and wait for the financial institution to approve their request.
These are the steps to explain “how to get education loan”. However, to maximise the benefits from this advance, students should check the features and benefits offered by lenders on it.
Benefits of availing an education loan against property
There are several reasons why you should finance your education with a loan against property. These are as follows –
- It offers a high loan amount value
You can avail a high loan amount of up to Rs. 3.5 Crore with this advance at affordable interest rates. This substantial amount is sufficient to cover all educational expenses incurred while studying in any premier institution, both in India and abroad.
- Offers a flexible tenor
The loan comes with a flexible tenor ranging between 2 and 20 years. It allows you to choose the tenor according to your convenience of repayment.
- Fast loan disbursal
This loan against property can be approved within 24 hours of application and further dispersed within 4 days of approval.
- Other benefits
There are financial institutions that offer several additional benefits that can make availing the advance even more advantageous. For instance, the balance transfer facility and Flexi Loan feature offered by the institution makes repaying the loan easier.
Further, they also provide pre-approved offers that make availing loans faster and easier. These pre-approved offers are available on a host of other financial products including home loans, business loans, personal loans, etc.
You can check your pre-approved offer by providing your name and phone number.
- Zero prepayment charges
If you have a sudden cash inflow, you can choose to pre-pay the availed loan amount in part without any additional charges.
These are a few important loans against property things you should know to ensure that you avail maximum benefits from it.
So, now that you know what is education loan against property and how to apply for it make sure you check all the necessary details before applying. If you fail to do so, it can make the process of loan application troublesome.
Additional Read: Know How To Get An Education Loan Against Property In Few Easy Steps