How You Get Education Loan On Property In 3 Simple Steps

Proper education is vital to lead a happy and successful life. Ivy League colleges and top educational institutions offer some of the best curricula for higher studies. Students passing out from such establishments are always in high demand. 

However, you require solid financial backing to take admissions in these universities. Fortunately, the higher education loan procedure in India is simple to follow and aids promising students to achieve their dreams.

While opting for an education loan, you can either avail an unsecured loan or go for a loan against property. Here is a look at how you can easily avail the latter. 

• Pre-loan Application- The following steps mention the education loan procedure before your actual application for the loan against property.

1. Check Eligibility Criteria- Not everyone can avail a loan against their property. Lenders lay down specific eligibility requirements which applicants must meet to get a loan sanctioned. These requirements vary from one financing company to another. Check whether your age, monthly income, credit score, and other factors match the criteria your lender outlays.
   
   
2. Determine the Loan Amount- Even though you can avail loans up to Rs. 3.5 Crore in the form of a loan against property for education, you should only borrow as much as you require. Furthermore, the maximum loan amount may vary between different NBFCs.

3. Compare Interest Rates- Lower interest rates are always favorable. You must compare the interest rates on offer from various lenders before finalizing on one.

4. Picking the Perfect Tenure- You can opt for tenure up to 20 years to repay an education loan. Longer tenure results in lower EMIs, but the total interest payable increases. Access your income and opt for a tenure that makes EMIs affordable.
5. Consider Pre-payment and Foreclosure Charges– Since loan against property come with longer tenure, it offers you an opportunity to pre-pay or foreclose the loan. However, some financing companies charge a fee or penalty for such facilities. Check these charges, so that you can make an informed decision regarding foreclosure or pre-payment in the future.

Make sure you complete all of the education loan procedure mentioned above before submitting the loan application.

• Loan Application- After checking the education loan details, you need to ensure proper loan application, so that your lender sanctions it.

1. Fill Up The Online Loan Application Form- This is the most important step during loan application. You must visit the financing company’s website and fill up the loan application form online. You need to provide details regarding your name, address, phone number, etc. Additionally, you need to provide additional information regarding your finances, such as credit history, monthly income and more. The form will also include a section about the property against which you are availing the education loan. Submit the form after filling it up.

2. Connect With A Representative- After successful submission of the form, a representative from the NBFC will contact you to know further details.
3. Complete Documentation- Apart from providing the details in your online application form, you will also need to provide certain documents to avail a loan. For instance, you will need to submit your KYC, salary slips, bank account statements, and property documents.

4. Instant Approval- Several reputed NBFCs these days provide instant approval of loan applications. If all your personal details and documents match the lender’s requirements, the company will process your loan against property without delay.
   

• Wait for Disbursement of Funds- The last step in the education loan procedure is the disbursement of funds. After the approval, you can just wait for the money to be disbursed. This should take place within a few days after the approval.

Various financial institutions additionally provide pre-approved offers, which make availing loans simpler and faster. These offers are available for secured loans, such as home loans, and unsecured loans, like personal and business loans.

It is difficult to find affordable education in India. If funds become a problem, opting for a loan against property can help you achieve your dream education. But always remember before applying for study loan use education loan calculator for calculating the EMI amount. However, keep in mind you should follow the steps mentioned above to enjoy a hassle-free loan application and approval process. Accordingly, these will also make repayments easier.