Receiving higher education from a reputed institute aids in achieving a successful career. However, these professional courses are often pricey and difficult to finance. Many parents turn towards their savings to fund their children’s dream.
This habit can strain the personal finances, leaving one stranded when emergencies arise. When facing such issues, availing an education loan can prove beneficial.
Studying abroad can add various expenses to the course fees, including accommodation charges, books, vocational course charges, etc. To cope up with these expenses, individuals can also look for alternatives.
Factors to check before applying for a study loan?
The Indian government has introduced education loan schemes in collaboration with the Reserve Bank of India and the Indian Banker’s Association. These schemes give financial coverage on most courses and institutions situated in India and abroad.
Some of the features of the education loan are-
- Financial institutions offer loans to support different part-time and full-time courses. This finance supports study fields like engineering, hotel management, Ph.D, etc.
- According to RBI, there are no age restrictions for application. However, this factor can vary according to a lender’s policy.
- However, such loans are provided to students who are either in college or pursuing post graduation.
- The applicant should have secured a seat in a university or college affiliated by Govt, AICTE or UGC.
However, fulfilling these criteria can be problematic for some applicants. Even if the loan is sanctioned to a borrower, managing the added expenses of living abroad can exceed the disbursed amount.
In this situation, individuals can apply for an education loan against property that offers substantial fund against simple eligibility. This is perfect for meeting the added expenses.
However, one must check the factors or things to know before applying for a loan on property for education to make an informed decision.
Features of loan against property for higher studies
- Substantial fund
Borrowers can receive substantial funds against LAP loan that are sufficient to meet the educational expenses. One can receive upto Rs.3.5 crore with minimum documentation through this credit form. This fund can cover ancillary expenses like accommodation, food, transportation, etc.
Moreover, a loan against property form gives the flexibility of usage, which is missing in an education loan.
- Repayment tenor
The tenor of a loan against property is quite flexible. The repayment can extend up to twenty years for salaried and eighteen years for self-employed. In this regard, one can use a LAP EMI calculator to find a suitable lending institution.
For instance, financial institutions like Bajaj Finserv offer affordable property loan interest rates to borrowers on simple eligibility. They also provide a pre-approved offer on selective products like home loan, LAP, etc. This makes the loan application process quite convenient. Check your pre-approved offer by entering a name and contact number.
- Minimum documnetation
Apart from checking the mortgage loan rates, a borrower has to prepare the requisite documents. An applicant has to submit basic papers like KYC, salary slip, income tax return, identity proof, bank statements and mortgaged property documents.
Apart from the LAP loan features, one must check how to apply a loan against property would aid in streamlining the process better.
Education loans are a convenient fund option for youngsters dreaming of pursuing a quality education. However, covering the spiralling charges of the course can be problematic.
As an alternative, individuals can look for mortgage loan and realise their career dreams conveniently.