According to the latest report, India has reached the 27% mark in the gross enrolment ratio or GER for higher education. This shows the popularity among students to pursue higher education. But in many cases high financial burden can challenge opportunities for a student. To cope up with this, parents can opt for a loan against property for education to fund their child’s education.
Apply for an education loan on a property in 3 easy steps
Three steps to apply for an education loan against property are –
Step 1: Visit the official website of a lender
Firstly, navigate the loan against property page from your preferred lender’s website.
Step 2: Enter your personal and property details
In this step, an applicant has to enter their personal and property details like name, address, contact number etc.
Step 3: Provide income details to get personalised offers
In this step, applicants need to enter details concerning their income to get access to exclusive tailored offers.
To get an education loan on a property, prospective borrowers must meet specific eligibility first.
Loan against property eligibility criteria
- Applicants must be a citizen of India.
- They should be between 28 to 60 years of age.
- Candidates have to show a steady source of income.
Apart from meeting these lenient eligibility, prospective borrowers should also keep a few documents ready for availing of this loan.
Documents required for loan against property for education
- KYC documents
- Recent salary slips
- Form 60/PAN card
- Property documents
- Title documents
- IT returns
- Previous 3 months’ salary slips
- Last 6 months’ salary slip.
Prospective borrowers can also avail of a loan against property tax benefits under section 37 and section 24. According to Section 37, beneficiaries can avail tax benefits on paid interests for LAP. Whereas for section 24, beneficiaries can enjoy tax benefits for the same if the loan amount is used to finance a new home, for a maximum value of Rs.2 lakh.
The government of India launched multiple education loan options to finance education for students. But, it is vital to note that this fund might not be sufficient to cover the total educational expense. Hence, it is ideal to opt for a LAP to meet the total cost.
Besides this, availing of an education loan scheme through LAP has multiple perks. These are mentioned below –
- Affordable interest rates
Students opting for a loan against property can fund their higher education from leading financial institutions at affordable interest rates. As this loan is sanctioned by keeping a property as collateral, the risks are much lower for lending institutions, and they levy significantly lower interest rates on borrowers.
- Nominal documentation and easy disbursal
A loan against property for education is inherently secure; hence most lenders consider minimal documentation. Also, after quick verification and reviewing all documents, they disburse the LAP without any hassle.
- Simple eligibilities
As mentioned above, applicants can avail of a loan against property by meeting its simple eligibility criteria. Although these criteria vary from lender to lender, the general pointers remain the same. But to avoid delays and rejections, it is best to visit the lender’s official website to verify the leads.
- Repayment flexibility
As an education loan can be availed for a considerably long tenor, the EMI becomes affordable for the borrowers. Hence, payment of the loan amount becomes easier for them.
Selected HFCs also offer pre-approved offers that simplify and expedite loan processing. Such offers are available on a range of financial products like loans against property, home loans, etc. You can enter your name and contact number to check your pre-approved loan offer.
Thus, it can be stated that opting for a loan against property for education is one of the most beneficial ways to finance education. This option also comes with multiple perks along with tax benefits.