Affording proper education has become incredibly difficult in India. Many students have the necessary academic record to pursue degrees but lack the financial backing for the same. Education loans are the easiest way to finance your studies. However, the maximum money you can borrow through such a loan may not be sufficient for your studies. Instead of focusing on how to get an education loan, you need to arrange for a better source of money for your studies.
Loan Against Property for Education or loan against property is one of the best financing options for your education. Here is how you can avail such a loan.
How To Get An Education Loan Against Property
- Check Eligibility Criteria
Different financing companies require you to meet varying criteria to avail an education loan. However, some of the common requirements to qualify for a loan against property are –
- Indian citizenship.
- Applicant must be between 25 and 70 years of age.
- A noteworthy credit rating/CIBIL score.
- The applicant must have a regular source of income, regardless of whether they are salaried employees or self-employed.
Therefore, to avail a loan against property, you or your parents must fulfill all of these criteria.
- Documents Required
Apart from meeting the basic requirements in terms of eligibility for a loan, you must also ensure proper documentation to secure the funds. Documents required varies based on whether you are a salaried employee or a self-employed individual.
Salaried Employees- If you are a salaried employee wondering how to get an education loan on a property, there are few documents you need to apply for the loan.
- Salary slips of at least the preceding 3 months at the time of loan application.
- Bank account statements for the preceding 3 months
- KYC documents
- Income tax returns
- Address proof of the property you want to keep as collateral
- Photocopies of all documents related to the property in question
Self-Employed Individuals- If you own and operate a business, you require a similar set of documents with a few variations.
- Bank account statements for the preceding 6 months.
- KYC documents
- Proof of address for the property you are pledging against the loan.
- All related documents to the property in question
- Filling The Form Online Advertisement
The loan application procedure has become much simpler today due to the internet. You can now fill up the application form online with all necessary details and submit it from your home or office. However, ensure all the information you enter is accurate, failing which your application may be rejected.
Additionally, at this stage, you must select the tenor and loan amount. Loan against property tenors generally goes up to 20 years. Reputed NBFCs, such as Bajaj Finserv, offer such flexible loan tenors as well as loan amounts as high as Rs. 3.5 Crore. Ensure your loan sum and tenor reflects your repayment ability.
- Rapid Approval And Disbursal
If all your documents and details are accurate and if you match the eligibility criteria for the loan, NBFCs will approve the loan within 5 to 6 days. A representative may contact you during this period for any additional documentation or verification.
- Disbursement Of Funds
After loan approval, the financing company will notify you when the funds are ready for disbursement to your account.
Features of a Loan Against Property
Now you know how to get an education loan on a property, you need to understand what makes a loan against property ideal to fund your studies. Viz. –
- Loan against property is high-value loans, which make borrowing substantial sums of money possible. In some cases, Rs. 25 Lakh may not be sufficient to finance your entire education. This is where these larger loans become handy.
- Loan against property has zero end use restrictions. You can borrow the sum and use a part of it to fund your education while the remaining portion of the loan against property can help you consolidate your other existing debts.
Additional Read: Know About Different Education Loan Schemes
Loan against property offers you ample time to repay your debts after you complete your studies. Unlike unsecured education loans, your EMI burden will be lower if you opt for a loan against property for education.