There has been a huge rise in the number of Indian students pursuing studies abroad. In the academic year 2017-18, 30% of the graduated students opted to pursue their studies in foreign countries.
Countries like the USA, UK and Australia are the most preferred universities for Indian students. The cost of living in these countries can end up being equal to the total tuition fees for the course. As such, it is very difficult for students to fund such a huge amount of expenses without an education loan for abroad studies. A loan against property for education is one of the most preferred means to fund such expenses due to its various benefits.
What Is A Loan Against Property?
A loan against property is a form of credit in which a borrower avails required funds from a lender by mortgaging a property as collateral. The borrower is liable to repay the debts over time, failure to do which will allow the lender to liquidate the property mortgaged to recover the dues.
Benefits Of Availing A Loan Against Property For Education In India
A loan against property is one of the best ways to fund expenses for higher education to its various benefits. The benefits it offers include-
- High Loan Amounts
A loan against property is a type of secured credit. Borrowers can avail a loan amount equal to 60-70% of the current value of the collateral.
The expenses of living in a foreign country can range anywhere between Rs. 70,000 to Rs. 1 Lakh. It is very helpful in funding the huge expenses that come with studying at a foreign university.
- Low Interest Rates
Financial institutions offer a much lower interest rate in case of an education loan in India against a property compared to other forms of credits. The reason for the low-interest rate is that lenders find the debt less risky due to property already mortgaged against the debt. Hence it is suggested that before availing for any types of loan user must have to compare the interest rate of different financial institutions.
The total cost of the loan is also less as a result which makes the repayment easier.
- Flexible Tenures
A loan against property comes with a flexible tenor ranging from 24 months to 240 months. If borrowers want to pay off the loan in quick time, they can avail a shorter tenor. However, if they want affordability, they can always opt for a longer tenor.
The total cost of a loan increases with increase in tenor. A borrower should know how to determine the ideal tenor for a loan against property to make the most of the credit.
- Flexible Loan Facilities
Universities usually take tuition fees once in a semester or an academic year. If a borrower avails the full education loan amount at the start then the interest will be charged on the whole amount. Financial institutions such as Bajaj Finserv provide their Flexi Loan facility on Loans against Property.
With this facility, the borrower can withdraw a certain sum of the sanctioned funds and pay interest only for that amount. The borrower can also choose to pay interest only as EMIs and repay the total borrowed sum at the end of the tenor.
- Loans up to Rs. 1 Crore and up to Rs. 3.5 Crore for salaried and self-employed individuals respectively.
- Online loan account management.
- Balance transfer facility.
Loans against property for education are among the most commonly availed financial products which allow students to meet the expenses required for studying in esteemed universities around the world. Borrowers must have to qualify for education loan eligibility criteria before they apply for the same. If you meet the criteria of education loan on property, you will get approval on your loan easier.
Bajaj Finserv is such an NBFC which provides pre-approved offers on such loans which make the process of availing them quicker, simpler and easier. Pre-approved offers are valid on various financial products like secured home loans and unsecured credits like home loans, marriage loans, business loans, personal loans and much more. These pre-approved offers are based on the financial capacity and eligibility criteria of the different users.