As of September 2018, the average ticket size for education loan remained at Rs. 8.95 Lakh as against Rs. 7.08 Lakh in Financial Year 2017. Also, the number of existing education loans in March 2018 stood at 2.79 million. These stats are a significant indicator of the growing popularity of advances to finance higher education.
The launch of various student loan schemes from the Government of India has only helped fuel this growth. Availability of interest subsidy through these schemes helps a student to repay the advances with ease. With the increased affordability, students can thus continue with their higher education loan either it is for India or abroad.
When availing these loans, students need to meet a few requirements and fulfil the eligibility required by the lender. They must also have a proper idea regarding the expenses they would be required to incur during the course duration.
In case you find it difficult to qualify for the loan, you can opt for a loan against property for education.
Given below are a few questions to keep in mind when availing a loan against property for education.
Questions To Ask When Availing Education Loan On Property
What Is The Amount Of Financing Required To Pursue The Selected Course?
When availing a study loan on a property, the first and foremost thing to consider is the amount of financing you will need during the course duration. Calculate it, taking into consideration all the expenses like tuition fees, university charges, examination fees, etc. As loan against property comes with unrestricted end-user, you can also include your living and travel expenses.
Any other considerable cost can also be included to arrive at a suitable amount to avail as a higher education loan. With the right amount of funding, you can manage your finances while studying abroad.
What Is The Total Repayable Amount And How To Calculate It?
Students must also have an idea of the total amount they will repay at the tenure end along with the total interest paid and EMIs payable. To estimate these amounts, they can use an education loan calculator, an online tool that helps with the computation.
The calculator requires you to enter the loan amount availed along with its tenure and applicable interest rate. This estimation helps you to plan repayments in advance and also select a suitable provider to avail loan against property for education.
You can input the interest rates offered by various lenders and compare them to arrive at the best financial institution. For instance, NBFCs like Bajaj Finserv bring these loans at competitive interest rates along with features like Flexi Loan facility for affordable repayment.
They also bring pre-approved offers that simplify the process of availing finance through hassle-free and convenient pre-approval. These offers are available on several financial products, including both unsecured and secured loans like business loans, personal loans and home loans.
What Are The Eligibility Criteria To Avail This Loan?
A borrower is required to meet the eligibility criteria laid down by his/her selected lender to avail this loan.
Below mentioned are a few general criteria to meet:
- A borrower should belong to the specified age bracket. For salaried individuals, it is 33 to 58 years, and for self-employed persons, it is 25 to 70 years.
- In the case of the former, he/she should be employed with an MNC, a public sector or a private sector company. The latter should have a regular source of income.
- Both of them should be residents of India.
Which Necessary Documents Are Required To Be Submitted?
Check out the general list of documents you should keep handy when applying for an education loan on the property.
- Proof of identity and address
- Proof of income
- Bank account statement
- Income Tax Returns
- Documents serving as mortgage proof
What Is A Suitable Repayment Tenure For Loan Repayment?
An ideal tenure of loan against property for education should be the one for which EMIs remain affordable for a borrower. Usually, a loan with prolonged tenure enables a borrower to repay with ease.
Once you have gone through the preparations with the help of these questions, you can apply for an education loan on a property with your selected lender. You can easily Fund your child’s higher education. Make sure to check all other charges of your loan against property for better financial management.