The cost of availing quality education loan is at an all-time high, and is incessantly on the rise. Getting enrolled in one of the premium institutions for higher education, government-funded or not, is a costly endeavour. Inflation in the education sector is presumed to be at 7%. However, it is much higher in certain sectors.
Availing a higher education loan against property has emerged as the most practical solution to fund your child’s education in the present scenario. Several NBFCs offer these secured loans at favourable terms so that it doesn’t become a financial burden on the borrower in future.
To understand why an education in india is a better way to finance your child’s education,you have to understand what it entails. So, here’s all the education loan details explained for you.
Features of Education Loans
A Loan Against Property for Education from NBFCs like Bajaj Finserv comes with a host of attractive features that will ease the burden of funding your child’s education.
- High Loan Amount
As mentioned earlier, studying at some of the premium private or public institutions may cost lakhs of rupees each year. You can easily fund it with higher education loans against property of up to Rs. 3.5 Crore if you are self-employed, and up to Rs. 1 Crore in case you are a salaried individual.
- Easy Repayment Tenure
An education loan against property can be repaid in easy instalments over the course of up to 20 years for salaried individuals and up to 18 years for self-employed borrowers. The long tenure ensures that EMIs stay low, thereby making repayments incredibly convenient.
- Pre-approved Offers
NBFCs like Bajaj Finserv also provide pre-approved offers that make availing loans substantially quicker and easier. Pre-approved offers are available on secured credits like home loans, unsecured credits like business loans and personal loans, and several similar financial products. You can take a look at your pre-approved offer by providing your name and phone number.
- Benefits Like A Flexi Loan And The Balance Transfer Facility
NBFCs like Bajaj Finserv offer several advantageous features to go with their loan against property for education in India. For example, their Flexi Loan facility allows you to make multiple withdrawals from a pre-sanctioned loan amount. You have to pay the interest only on the amount utilised. EMIs can be paid only in the form of such incurred interest and principal repayment can be done at the tenure’s end.
You may also transfer any existing loan against property you have to Bajaj Finserv and become eligible for a top-up loan of high value.
These features make Bajaj Finserv the most preferred loan against property lender in India. Furthermore, you may avail these loans quickly if you meet a few essential eligibility criteria, which are mentioned below.
Loan Against Property For Education Eligibility Criteria
Although it varies slightly between different financial institutions, there are some elementary eligibility criteria that you have to meet to avail an education loan in India. They are as follows:
- Indian residency is mandatory.
- Self-employed individuals should be between 25 and 70 years of age, whereas salaried individuals should be between 33 and 58 years.
- You should either be employed in the public or private sector or be self-employed with a stable source of income.
If you meet these simple eligibility criteria, your higher education loan shall be approved effortlessly, and the entire amount shall be disbursed within the next four working days.
Additional Read: What is Education Loan Subsidy?
Documents Required For Education Loans Against Property
There are few documents that you have to present to the financial institution for loan approval. Make sure that you have all these documents ready at the time of applying.
For salaried individuals, they are:
- KYC documents including PAN and Aadhaar cards.
- Salary slips and bank statement for the preceding 3 months.
- Copies of property documents to be mortgaged.
- Income tax returns for the previous year.
Self-employed individuals need to present the following documents:
- KYC documents.
- Proof of address.
- Copies of the property documents.
- Audited balance sheets and profit and loss statement of accounts.
You have to submit these documents along with the duly filled application form to get your higher education loan against property sanctioned easily. Avail the loan and let your children fulfil their dream of studying in the institution of their choice.