The Indian education sector is considered one of the largest higher education systems across the world. While the nation hosts more than 1.4 million institutions and 227 million students enrolled in such educational institutes, the country still holds the potential to promote further development through them. With a steadily increasing GER from 25.2% in 2017-18 to an expected 30% by 2020-2021, it is evident that the trend to pursue higher education within India and abroad is only slated to increase in the future.
Additionally, the GPI or Gender Parity Index has also increased from 0.86 in 2010-2011 to 0.94 in 2016-17, which indicates the uniformity in the education sector irrespective of sexes. However, the persisting financial gap needs to be addressed to fund the diverse expenses involved in pursuing higher studies in India or abroad. Taking this requirement into account, multiple NBFCs now offer student education loan that come with an adequate credit amount to easily meet the required expenses.
Considering the high sum required, loans against properties are coming up as the most beneficial format of credit to fund education. These loans are long-term and secured, they come with lower rates of interest which leads to easier EMIs.
It is essential that students and their parents have an in-depth idea about when and how to get a student loan against property to make the repayment as easy as possible.
When To Get An Education Loan On Property?
Availing loan against property for education enables potential borrowers to access to a high-value credits Rs. 3.5 Crore offered only by top lenders such as Bajaj Finserv.
However, strategic planning along with a careful comparison of the loan options available in the market is vital to make an informed decision. Here are a few things that a borrower should plan before settling upon a loan-
- Loan amount required.
- Required eligibility criteria, and documents to avail an education loan.
- Repayment tenor.
- Compare between floating interest rates vs fixed interest rate.
Comparing such features takes time, and hence, it is suggested that potential borrowers keep a few months handy while availing a student education loan. Considering that Class 12 examinations for all boards end by March or April, and admission to universities takes somewhere around June- July, it is imperative that the borrowers start with the strategic planning by April and settle upon one by May. It will give them ample time to have access to the credit amount and decide upon the ways to spend it.
Reputed lenders like Bajaj Finserv offer Loans Against Property for Education with benefits like disbursal of the credit amount within 5 to 6 days of approval. Additionally, borrowers can also have access to multiple beneficial features such as –
- Hassle-free application procedure.
- Flexible repayment tenures ranging from 2 to 18 or 20 years.
- ● No-charge part prepayment or foreclosure facility.
Borrowers can have access to such beneficial features when they qualify for a loan against property by meeting a few simple eligibility criteria and furnishing basic documentation, viz.-
- For Potential Salaried Borrowers
Eligibility – Applicant needs to be a resident of India residing in any of the cities specified by a lender and be between 33 to 58 years of age. The individual must be working in an MNC, or be employed in a public or private sector.
Documents – Applicant is required to furnish the latest salary slip, IT returns, bank account statement of the last 3 months, KYC documents, address proof, and copy of the documents for the property to be mortgaged.
- For self-Employed Individuals
Eligibility – A self-employed potential borrower must be between 25 to 70 years, and an Indian resident residing in any of the lender-specified cities. Applicant must also have a regular source of income.
Documents – Applicant must provide their bank account statement of the previous 6 months, KYC documents, address proof, and a copy of the documents for the property to be mortgaged.
Other than the above benefits, Bajaj Finserv also brings you pre-approved offers that ease the application process to avail such financial assistance. These offers are available on numerous financial products that include both secured advances like home loans, and unsecured advances like personal loans, business loans, etc.
So, in case you are opting to go for a student education loan, make sure to approach a lender with a healthy CIBIL score that will help you get the best terms and conditions on financial deals. In addition to all these factors, you must also learn how to increase CIBIL score so that your application for a student loan to processed without any issues and under 24 hours.