Collateral-free education loan is an ideal way to fund such expenses involved in higher education; however, it only covers the cost of tuition fees. Hence, the alternate option to opt for is a loan against property for education.
With such collateralized loans, you have to mortgage an asset to apply. While you avail such advances, there are certain aspects that you should know to ensure a smooth loan lifecycle.
Some of these aspects are given below:
- Know The Application Process- The application process for study loan is convenient, and you can do so online. To apply, head over to the official website of your lender. On the website, fill an online application form with your personal and financial information like your name, contact details, date of birth, annual income, etc. After your application is approved, a representative of your lender will visit you to collect all the required documents. Once your documents are verified, the loan amount will be transferred to your account directly.
- Study The Interest Rates And Charges- Know the charges of your loan against property for education before you apply. Learning all the charges will help you estimate the cost of your credit. Also, knowing the EMIs of your loan will help you manage your finances better.
- Learn The Eligibility Criteria And Documentation Process- To qualify for advances for education in India or abroad, you will have to meet the eligibility criteria, such as:
Self-employed Individual
- Age - Be in between the age range of 25 and 70 years.
- Income - Have a regular source of income with a considerable amount.
Salaried employee
- Age - Be between the age of 33 and 58 years.
- Income - Be employed under a private or public sector with a considerable source of income.
In addition, to qualify for an education loan property, you should be a resident of India and reside in any of the cities where your lender operates.
You also have to provide some documents, such as:
- KYC documents - like Aadhaar card, PAN card, driving license, passport, voter ID, etc.
- Address proof - such as electricity bills, water bills, gas bills, telephone bills, etc.
Additionally, self-employed applicants will have to submit their income proof documents like profit and loss statements, income tax returns, account statements, etc. and their business proof papers such as GST registration certificate, SEBI registration certificate, etc.
Salaried applicants can provide their salary slips, account statements, income tax returns as their income proof.
- Know The Loan Amount And Loan Tenure- Before you avail, determine the ideal tenure of your loan against property for education and the loan amount. It is beneficial to opt for a longer tenure so that your EMIs are affordable and does not strain your budget at the time of repayment. You can use a loan EMI calculator to determine your EMIs and choose the right tenure.
Several financial institutions offer higher education loan with a prolonged tenure and substantial loan amount. Bajaj Finserv is one such NBFC that provide Loan Against Property for Education at an attractive interest rate and against minimal documentation.
This NBFC also brings you pre-approved offers to save your time by reducing the hassle of the application process. These pre-approved offers are available on various financial products like home loans, business loans, personal loans, etc.
Additional Read: Different Types of Education Loan Schemes
While finalising on a lender, check if the following features are available:
- Instant approval
- Online account access
- Prolonged tenure of up to 20 years
- Substantial loan amount
- Balance transfer facility
Apart from the above, while you avail such education loan on property, check the income tax benefits that you can enjoy. These secured loans have no end-usage restrictions, so do make sure to utilise the amount accurately and do not default on payments.
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