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The number of education loans in India grew by 9.3% in 2018 compared to the previous year. The main reason behind this growth is the immense increase in expenses related to pursuing a higher education course in reputed foreign universities.
For instance, the total monthly expenses to pursue a higher education course in the U.S.A or UK can range anywhere between Rs 70,000 to Rs. 1 Lakh. Hence, availing financial aid becomes exceptionally crucial. Therefore, a loan against property is considered as the best tool to fund such expenses owing to the high loan amount and additional benefits it offers.
If you want to know how to get education loan against property to pursue a higher education course conveniently, consider the points mentioned below.
- Determine your requirement
Determining the amount that you will require can turn out to be a wise decision. Divide the total cost into semesters for a proper financial strategy. Additionally, you are required to determine loan against property vs education loan: which one is better suited for you.
If you know what is education loan, then you must be aware of the fact that it comes with end usage restrictions that may not cater to your needs. Hence, opting for a loan against property may be a wiser choice. Also, you must take into account the various additional costs that you may require to pay in a session like costs of food, accommodation, travel, etc. before narrowing in on a loan amount.
- Check the required eligibility criteria
Every financial institution has its own set of eligibility criteria that you are required to meet to avail of credit. Checking the criteria beforehand will provide you with an opportunity to understand if an application will be approved or not. Applying for too many loans in a short time decreases your credibility. Hence, check the required criteria beforehand to avoid rejection.
- Choose the EMI amount carefully
Knowing what is education loan is not enough, one needs to understand and evaluate his/her repayment capabilities before availing the loan. Clearing a massive debt can be troublesome if you avail an amount beyond your financial capabilities. Hence, determining the EMI amount before applying can be helpful. You can increase the loan tenor to decrease the EMI amount, which you can comfortably repay.
NBFCs offers an extensive range of tenor options for up to 20 years in case of Loan Against Property for Higher Education. They also provide pre-approved offers to make the process to avail such credits hassle-free and less time-consuming. These offers are also valid on a plethora of financial products and services, including home loans, business loans, personal loans, and more.
- Select a suitable lender
Individuals are required to conduct a thorough analysis to determine an ideal lender depending on your requirements. For instance, they are required to check the interest rates and other loan amounts offered by the lenders to make the most of their credit.
Application procedure
To apply for a loan against property for higher education, you are required to visit the official website of your preferred lender and fill out an application form. Representatives from the lender will get in touch with you within 24 hours after you apply.
If there are no errors in your form, your credit will be approved within the next 48 hours. You are required to submit the essential documents after that. The sanctioned loan amount will be disbursed into your bank account after successful document verification.
Eligibility criteria
Now that you know how to get education loan, check the eligibility criteria you are required to meet to avail such a credit –
- You must be an Indian resident.
- If you are a salaried employee, your age must be between 33-58 years. The age bracket for self-employed applicants is 25-70 years.
- You are required to be a salaried employee in an MNC, private sector or the public sector. If you are self-employed, you must hold a regular source of income and have substantial business vintage.
Along with the eligibility criteria, also check out the list of documents needed to apply for a loan against property.
The above-mentioned points should provide you with a clear idea of how to get an education loan to fund your child’s expensive to study abroad. Also, check if the course is eligible for an education loan before applying for such credits.
