Stepwise Guidelines To Know Before Opting For Education Loan Against PropertyFebruary 24, 2020
With the rise in educational standards as well as increase in favourable opportunities abroad, demand of loan options to finance higher education have been steadily rising. These loans are tailored to cater to every necessity that one might come across during their higher academic courses, be it abroad or some elite institutes within the country. From tuition fees to living costs and hostel charges, everything can be covered with the loan amount granted under these schemes.
While there are options of unsecured loans for educational needs as well, an education loan against property provides the most comprehensive financial coverage. Regular education loans can mostly cover the tuition fees of the institution as mentioned. A loan against property for education can help the borrower avail funds against the property value and use them without any end use restriction.
For instance, it can also help cover the etcetera costs of studying abroad such as food & beverage, accommodation, etc. Students can easily apply for an education loan on property for abroad, following these easy guidelines.
Education loan eligibility is the first of the steps to address. Borrowers can qualify for a loan against property by meeting these simple eligibility criteria underneath.
For salaried individuals –
- Age of the applicant must be between 33 and 58 years of age.
- Applicants must be working at an MNC, private or public organisation.
- Must be a resident of India.
For self-employed individuals –
- These applicants must be between 25 and 70 years of age.
- Must have a regular income source.
- Must be a resident of India.
Unlike eligibility requirements, documents required to apply for an education loan against property for abroad studies are quite similar for both salaried and self-employed individuals. Along with all the documents listed underneath, salaried individuals also need to provide their salary slips.
- All documents of the mortgaged property.
- Bank account statements.
- Proof of address.
- Proof of identity.
- Recent photograph of the applicant.
- Income Tax returns.
Ways to Best Benefit from a Loan Against Property
There are certain things to know before applying for a loan against property for education which can help repayment easily over time.
- Apply for the Right Loan Amount: While this financial assistance can go up to a sum of Rs. 1 Crore for salaried individuals, in case of self-employed borrowers this sum can go much higher up till Rs. 3.5 Crore. However, no borrower should avail more than the sum of funds required for educational purposes. If you need a total of Rs. 50 Lakh to pay for the tuition fees, accommodation, etc., apply for only that even if you are eligible for a higher loan amount.
- Opt for Pre-approved Offers: NBFCs offer extremely convenient application methods which allow accessing the financial product faster and without any hassle for students. Financial institutions bring you pre-approved offers that make availing education loans against property quick and easy. Pre-approved offers are available on numerous financial products like loans for higher education, home loans, personal loans, business loans, etc. You can check out your pre-approved offer by providing your name and phone number.
- Have all Property Documents in Order: To avail a loan against property you need to provide documentation respective to the property you are about to mortgage. Make sure you have all such required documentation handy. Moreover, note that a lender may reject the loan application if the property has unsettled tax dues or other litigation issues on it. Documents as proof of tax paid are as vital as final legislative documents any previous litigation case currently resolved.
- Choose the Right Tenor: Any education loan against property has a flexible and long tenure for repayment. Especially since these schemes grant a huge sum in loan amount, a range of 2 to 20 years is granted to salaried borrowers for the repayment of these loans. For self-employed individuals, this tenor goes up to 18 years. Choose the longest tenor possible to reduce the EMI amounts. Although the total cost of loan will increase, you can repay them comfortably once you gain employment after the education is complete.
While eligibility and documents required are not too difficult, characteristics of an education loan against property define its necessity. Strictly adhering to the documents and eligibility requirements ensure easy during application for a loan.
Consequently, with pre-approved offers and fast approval policies of NBFCs, students can avail these financial products once they have their call letter. Convenience of fast disbursal of loan amount ensures students do not miss out on opportunities since call letters often come with strict and close deadlines.