India is taking serious strides toward higher education with a substantial number of students deciding to enroll in various universities for their studies. According to Reserve Bank of India, Indians spending on tuition and hostel fees abroad has risen 44% in a span of approximately 4 years.
From 2013-14 to 2017-18, rise in spending has gone from $1.9 Billion to $2.8 Billion. Typically for graduation and afterwards, students often require financial aid despite different foreign universities offering scholarship options. Even higher education charges in India at some of the elite institutions are quite high, often requiring monetary help.
Financial institutions in India have numerous loan options which cater to different types of customer needs. An education loan against property is one such specialised product which provide monetary help to a borrower during his or her academic days to cater to various requirements.
There are both unsecured and secured loan options available as loan for higher education. Typically, education loan on property abroad assure of higher sums of money since these are secured loans granted against a mortgaged property.
Aspects to Check Before Availing Education Loan on Property:
Students interested in availing such financial products should be well aware of the details of these schemes. Additionally, they should be cautious to check all the underneath aspects before finalising on their education loan for studies abroad.
- High loan amount: Secured loans for higher education can offer a significantly high loan amount. For salaried individuals availing such a loan this amount can reach Rs. 1 Crore. In case of individuals who are self-employed, access to a much higher loan amount of Rs. 3.5 Crore is usually granted. These high loan amounts ensure that all aspects of studying abroad like tuition fees, living costs, hostel charges, equipment costs, etc are covered.
- Easy eligibility with minimal documentation: Education loan eligibility criteria are usually borrower-friendly along with minimal documentation for both salaried and self-employed individuals. Both only have to present their property and KYC documents, etc. along with a few specific financial documents like salary slips or bank account statements.
- Apart from being a resident of India, salaried and self-employed individuals have different age restrictions. It is an essential part of loan against property for education explained.
- Fast approval and disbursal: While prompt approval is typically followed by fast disbursal of loan amount within only a few working days, the application procedure of these loans are also extremely convenient. NBFCs even 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.
- Balance transfer facility: This feature has two crucial aspects to it. Firstly, it allows customers to transfer their loan amount to a NBFC or financial institution that offers more convenient rates of interest.
- Secondly, while this ensures reduction in the total amount of interest paid on such a loan, it also allows the option to avail a top-up loan. Under this option, borrowers of an education loan can take another smaller amount over and above already existing loan amount.
- Flexibility in repayment tenor: While opting for such a financial product, it is crucial to know how to determine the ideal tenor of your loan against property. Generally, these have the option of an extended tenor. In case of salaried individuals it can range between 2 years and 20 years, while for self-employed borrowers it can reach up to 18 years.
Additional Read: Education Loan Against Property Procedure – How to Apply for It?
These features mentioned above ensure that students not only get easy monetary help, but also an adequate sum to cater to their entire academic and related needs. Irrespective of whether a student is availing education loan for studying abroad, an elite institute inside the country or even for an academic project; these loans provide enough monetary backup along with easy eligibility and documentation. Fast approval and disbursal also ensures that students can swiftly avail the product when they require financial help.