Education is the base on which the rest of your career is built. If the foundation is weak, you cannot hope to have a successful career. However, not everyone can afford the best education, primarily due to the considerable expenses involved. Thankfully, financial institutions can help you handle these expenses through education loans.
However, the most common question that lingers in the mind of such prospective applicants is – what is an education loan?
An education loan refers to any money borrowed from financing companies to fund your studies and all other related costs. Here is a look at all aspects of education loans and how they can help you achieve your dreams.
Education Loans In India
If you aspire to study at the top colleges in the world, an excellent academic record alone will not cut it. You also require financial backing to afford the high tuition fees, along with the cost of accommodation. For a majority of the families in India, money becomes a constraint when it comes to pursuing higher education.
Education loans are personal, unsecured loans offered by financing companies in the country. With this financial assistance, you can even afford to study at some of the top colleges in the country.
What Is An Education Loan Against Property?
If you or your family own a property, you can even avail an education loan against that property. This is known as education loan on a property or Loan against property. Some features of such Loan Against Property for Education make them more suitable for students than a simple education loan.
- With a Loan against property for education, you can avail a loan of up to Rs. 3.5 Crore. On the other hand, most financing companies offer only up to Rs. 25 Lakh when it comes to an unsecured education loan. The higher loan value for Loan against property will allow you to seek your education at even the top universities in the USA, such as Harvard and MIT.
- For an education loan, the tenor ranges between 1 year and 5 years. However, tenor for Loan against property ranges between 2 years and 20 years. Therefore, if you opt for an education loan against property, you can pay back the borrowed sum over a longer period, reducing the financial burden.
- When you opt for an education loan, you are restricted to spend the money you borrow on your education alone. However, there are no such restrictions on Loan against property. You can use the borrowed sum to pay your course fees, while at the same time use the remaining portion of the funds to plan destination weddings under Rs. 20 Lakh.
Eligibility Criteria For Education Loan Against Property
The eligibility criteria to qualify for a loan against property differ between the various financing companies. However, below are some of the common requirements you must meet if you plan to avail such a loan.
- Age- If you are a salaried employee, you must be aged between 23 and 58 to avail such a loan. For self-employed individuals, the eligible age bracket is between 25 and 70 years.
- Income- The minimum monthly income varies between the different NBFCs offering these loans. You must check with your lender whether you fulfill the minimum monthly income requirements for availing a loan against property for education.
- Credit Score- To avail any loan in India, you need to maintain a healthy credit history and credit rating. Check whether your CIBIL score is above 750. Most NBFCs do not offer these loans to people whose credit score falls below 750 points.
How To Apply For An Education Loan On A Property
Simply understanding what is education loan on a property does not help. You must have to know how to apply for education loan and what is the required procedure. Here are some steps for applying for the education loan:-
Step 1: Fill up the online form for loan application
Step 2: Complete the documentation procedure
Step 3: Wait for loan approval, which generally occurs within 24-48 hours
Step 4: Check your account for the disbursed sum
Bajaj Finserv provides pre-approved offers to make availing loans faster and easier. These offers are available across secured loans, like home loans, as well as for unsecured loans, such as business and personal loans.
Do not let the lack of money get in the way of success. Apply for an education loan today and turn your career dreams into reality!