Check Out The Step By Step Guidelines To Avail An Education Loan Against Property

India prides itself on holding the third largest higher education system across the globe. According to a survey conducted by the All India Survey on Higher Education (AISHE), the Gross Enrolment Ratio of students is at present 25.8% and is predicted to touch 50% by 2030.

 In an attempt to make this goal a feasible option, multiple innovative and transformative approaches are being taken in the higher education sector of India. It is accompanied by a surge in the number of students aspiring to pursue their higher studies abroad.

As per recent data, there has been a substantial increase of 44% in the number of students studying courses abroad. Increased availability of diversity in courses, and escalated job exposures calls for the pursuit of higher studies abroad.

However, studying in a foreign country can prove financially challenging. To mitigate that issue, multiple leading lenders now offer education loans. These advances cater to diverse expenses involved in studying abroad like the tuition and college fees, accommodation charges, etc.

Most borrowers introduced easy online application facility as well as minimum eligibility requirements to ensure easy availability of such credits. Let’s take a look at step by step guidelines to get an education loan against property.

Step 1: Look Into Your Financial Requirement

Lit is essential to make sure that you do not borrow more than what is required considering that it might pile up during repayment of the credit. Thus, look into the university or college that you seek to apply for and draw an estimate of the expenditures involved in pursuing courses before applying for a loan against property for education. It should also include supporting expenses.

Considering that education loans for studies abroad come equipped with no end-usage restrictions, using its funds to sponsor such diverse expenses is feasible.

Step 2: Check on Your FOIR

Education loan for studies abroad can fetch a lump sum amount of up to Rs. 3.5 Crore against a mortgage (as per LTV of an asset). However, borrowers need to look into their existing financial obligations and decide upon a repayment amount that would not strain their budget.

Must Read: Education Loan Against Property For Abroad Studies

Individuals also need to make sure that their debt-to-income ratio is well-within 30%. It ensures a convenient availing of advances and presents his/her stronger creditworthiness.

Step 3: Compare Lenders Based on a Few Parameters –

Keeping in mind the availability of diverse lending options, borrowers need to compare lenders based on certain parameters. It ensures that they make the most out of their availed credit.

●       Interest Rate: the Rate of interest determines EMIs of a loan. With secured credits, borrowers need to be more focused on the rate of interest offered, considering the hefty loan amount involved. A competitive rate of interest would yield affordable instalments and hence ease the repayment process.

●       Charges: Make sure to look into and understand the charges on your loan against property. It helps you compute the total cost of credit and hence decide upon a lender to borrow from.

●       Eligibility Criteria & Documentation: Borrowers need to fulfil minimum education loan eligibility and paperwork that would ensure approval after the application.

●       Tenor: The chosen tenor of a loan has much impact on your monthly instalment of a credit. Tenors should be determined as per the current repayment capability of borrowers – shorter tenors in case you can afford the higher EMIs and vice-versa.

Taking into account such features, approaching leading NBFCs and availing their Loan Against Property is a preferred option. It is because such advances offers its borrowers with a host of beneficial features.

It includes added incentives provided to existing borrowers in the form of pre-approved offers that are available on numerous financial products, like home loans, personal loans, business loans, etc. These offers simplifies the application process to avail financial assistance. You can take a look at your pre-approved offer by providing only some essential details like your name and contact number.

Step 4: Follow Up With the Application Procedure

Reputed lenders usually employ a simple application process for credits like education loan. All that they need to do is visit the official site of a lender, share some essential details and wait for approval and disbursal of the sanctioned amount.

Approaching a suitable lender and availing the best education loans also enables borrowers to enjoy the added benefit of tax deduction under Section 80E on the interest part of your advance.