In 2018, the total quantum of loans for education disbursed increased by 9.25% from the previous year, to touch a portfolio size of almost Rs. 82,000 Crore. From this data, it is evident that more students, especially the ones applying in universities abroad, seek advances to cover their education costs.
In India, several financial institutions offer education loan against property, both unsecured and against mortgages like properties, that not only allows students to cover their tuition fees abroad but also help them fund other associated expenses like travel costs, lodging costs, etc.
Such advance provides numerous benefits that can allow students to reduce their financial liabilities associated with studying abroad.
However, similar to any other types of advances, there are certain things one might consider while availing such a credit. These can include various factors, starting from determining the correct loan amount to planning a repayment strategy. Let’s take a look at some of such essential factors.
Things To Consider To Avail The Loan –
There are several things you need to know about before applying for a loan against property to ensure that the application process is hassle-free and repayment does not strain their budget. These are –
- Check The Eligibility Criteria –
The eligibility criteria to avail this advance usually vary from one lender to another. However, before applying for the advance, you must mandatorily check the criteria to eliminate the chances of your application getting rejected. Some of the standard education loan eligibility criteria parameters set by financial institutions include the age of borrowers, their nationality, and a predetermined margin of annual income.
- Compare Interest Rates Offered By Lenders –
To avail the most affordable education loan against property, it is crucial to compare the interest rates offered by various financial institutions.
One should also compare additional fees, and charges levied on such credits. For example, some lenders offer nil prepayment charges that can make repaying the advance hassle-free.
- Know The Value Of Property To Be Mortgaged –
Learning the correct amount of the property to be mortgaged is crucial because it allows you to gauge the quantum of advance you can avail against it, thus helping you to make comprehensive financial plans for the future.
- Have An Estimate Of The Amount You Need To Borrow –
Calculate all your education-related financial liabilities and estimate how much credit you would require to borrow from a lender. To do so effectively, make the list of expenses you need to cover by availing the advance. It is of utmost importance to borrow the required sum only; an excessive amount can put significant financial strain during repayment of the credit.
Why Should You Avail An Education Loan Against Property?
Education loan for abroad studies, availed against property, is a secured advance without any end-usage restriction that can help a student cover various expenses associated with their education abroad.
Following are a few benefits that you can avail from it –
- High Loan Amount Value – Students can avail of a high loan amount of up to Rs. 3.5 Crore that can help them cover the substantial expenses incurred while studying abroad. This can include their tuition fees, travel expenses, food and lodging costs, etc.
- Flexible Tenor – One of the primary things you need to do to apply for a loan against property for education is to calculate a suitable repayment tenor according to your financial portfolio. These credits come with a flexible tenor to help you make repayments according to your convenience. Lenders provide a tenor of up to 20 years for salaried individuals and up to 18 years for self-employed individuals.
- Minimal Documentation Required – Borrowers can avail of this education loan against property by submitting only a few stipulated documents.
Additionally, with financial institutions like Bajaj Finserv, borrowers can avail pre-approved offers that can make availing the loan faster and easier. Such offers are available on several financial products, including home loans, personal loans, business loans, etc. You can check your pre-approved offer by providing your name and phone number. But before availing for loan, you must have to education loan against property eligibility and keep the required documents ready.
In addition to these, you should also consider other associated benefits offered by various financial institutions and avail the one best suited for your needs. For instance, renowned lenders also offer balance transfer facilities against minimal charges, extended repayment tenor, easy pre-payment and foreclosure facilities, etc. that can make repaying the loan significantly simpler. With these few factors into consideration, you can avail of an advance that can help you to maximize the benefits out of it.