As per global research, higher education has become 4.5 times costlier than it was 30 years back. With the education industry operating on demand-supply principles, these costs will only inflate in the future. Which means, providing higher education to your child is going to be more expensive, be it in India or overseas.
Education loans come off as a smart financing option to meet the rising expenses. Since the total cost of education is quite high, additional finances can be met with an education loan on property. Therefore, if you aspire to give your child the best higher education, you must know how to get an education loan, this will help you a lot more.
Lenders bring Education Loan on Property of high value at attractive interest rates. Both salaried and self-employed individuals can avail them to fund their children’s higher education.
Know how to avail an education loan against property in India and manage all expenses related to your child’s education affordably.
How to Avail an Education Loan in India?
The process of availing an education loan against property is simple as you can apply for this loan by submitting an online application. Lenders like further make the process of availing loan easy with quick approval and disbursal of the loan amount.
They also bring pre-approved offers that make the process of availing finance quick and easy. These offers are available on secured loans like home loans as well as unsecured loans like personal loans and business loans along with many other financial products. You can check your pre-approved offer by furnishing a few necessary details like your name and contact number.
Now, check out the procedure on how to get an education loan.
- Know the Available Interest rates and Select the Lender
While interest rates on education loans are lower than many other types of credit, the rates may vary from one lender to another. Therefore, it becomes necessary that you compare the lending rates of various lenders to get the most affordable advance for education.An education loan on the property is a secured loan and comes with a comparatively lower rate of interest. Also, you can get a high-value loan amount of up to Rs. 1 Crore if you are a salaried individual and Rs. 3.5 Crore if you are self-employed.Make sure to compare these factors to get the best deal on education loan and choose your lender wisely. Opting for an education loan against property can have many benefits as against any unsecured loan. So, know which one is better for you before finalising.
- Meet the Eligibility Criteria
Make sure to verify your eligibility before applying for an education loan against property.For a Self-employed Individual
You need to be an Indian citizen residing in selected cities namely Kolkata, Hyderabad, Delhi, Thane, Mumbai, Pune, Chennai, Ahmedabad, Bangalore, Udaipur, Vizag, Surat, Cochin, Indore and Aurangabad. You should also be a self-employed individual with a regular source of income and aged between 25 and 70 years.For a Salaried Individual
A salaried individual needs to be 33 and 58 years of age residing in India. He/she should also be working as a salaried individual in a public sector company, private company or an MNC.
- Be ready with the Necessary Documents
Once you meet the eligibility criteria, keep the required documents handy to quickly complete the process of how to get an education loan. The basic documents required for both salaried and self-employed individual are as follows.Proof of identity.
Proof of address.
Statements of bank account (past three months for salaried employees, and past six months for self-employed individuals).
Copy of documents of the property to be mortgaged.Additionally, a salaried individual also needs to submit latest salary slips while a self-employed person needs to furnish IT return files.
- Submit an Online Application
The procedure of how to avail a student loan is easier now. All you need to do is fill up an online application form and submit the documents mentioned above.
Following this, you will be contacted by the lender’s representative for verification. On completion of the procedure, the loan amount is disbursed to your account within 4 days from the date of approval.
That was all about to know what is Education Loan and other details in India for funding all expenses related to your child’s education. Make use of the education loan calculator to know the total repayable amount and plan your finances accordingly.