According to The Economic Times, the ticket size of loan disbursals in India for education rose by 47% for FY-2018. Even though the number of students seeking this aid diminished, the advance portfolio touched Rs. 82,600 Crore in the same fiscal year. From this data, it is evident that higher education has become costlier than before, especially for those pursuing their post-graduation abroad.
The easy availability of funding, however, has made it much easier for students to bear their education-related financial burden. An education loan against property is one such advance that students can avail to fund their higher studies at leading educational institutions, both in India and abroad.
Following is an elaboration on how to get a student loan against property in 3 easy steps. You will also find everything about loan against property explained to help you avail the advance without hassle.
What Is An Education Loan Against Property?
Loan against property is an advance that can be availed against a mortgaged asset. The loan has no end-user restriction, allowing borrowers to use the credits borrowed to fund any of their financial requirements. Covering financial liabilities in due course of pursuing higher education, for instance, is one of the most common purposes for using the advance.
By complying with a few simple eligibility criteria and supplying the list of documents needed to apply for a loan against property, students can avail a high loan amount value of up to Rs. 3.5 Crore with this loan. This amount can assist them in not just covering their tuition fees but also cover other expenses like travel fare, boarding and other living costs.
3 Steps To Follow To Avail A Loan Against Property For Education
For those asking “how to get a student loan”, the following 3 steps can answer their queries –
- Check For The Available Loan Options
There are several financial institutions in India that offer loans against property for education. So before you apply for education loan, it is crucial to research the different options you have at hand. Few lenders offer the advance at more favourable terms than others, with more affordable interest rates and other benefits.
Additionally, they also bring pre-approved offers that make availing the loan quicker and simpler. Pre-approved offers are available on several financial products, including home loans, personal loans, business loans, etc. You can check your pre-approved offer by providing your name and phone number.
Therefore, before applying for the check, make sure you compare the various options to understand the one best suited for your needs.
- Check The Eligibility Criteria And Required Documents
Eligibility criteria to avail the loan vary from one lender to the other. Therefore, after choosing your lender, check the criteria put forward by them to make sure that you are eligible to borrow the credits. Following is a set of general eligibility criteria set by most lenders –
- Age limit which often varies from 33 to 58 years for salaried individuals and 25 to 70 years for self-employed individuals.
- Borrowers have to be Indian residents.
- Salaried individuals must be employed with either MNCs or any public or private sector company.
Apart from these criteria, individuals will also have to provide KYC documents, income proof and the documents for the property to be mortgaged to the lenders. Thus, by fulfilling these few eligibility criteria and providing these documents, individuals can avail the education loan against property and gather a substantial quantum to apply to the best colleges in the world.
- Online Application
To make the process of availing loans easier, most financial institutions have introduced online loan application facilities. Therefore, the last step to learn “how to get a student loan” is to know the online process to apply for such a loan with any lender.
To apply, you have to visit your lender’s website and fill in the requisite information in the application form. Next, you will have to attach the required documents and submit your application.
The lender will then review your request and approve the advance if all the requirements are in order. Some financial institutions even approve and disburse the loan amount in under 4 days.
These are a few things you need to do to apply for a loan against property for education. However, it is crucial for you to know the amount you will require to make sure that you have an idea about the quantum of advance you will need to apply for. Refer to leading lenders for the most beneficial terms and features