Being one of the most important investments, Education helps with knowledge, expertise and valuable skills that can help leads one to a better future. Gone are those days when you were required to cancel your education plans due to financial crises.
An education loan is one of the most popular ways of getting your Education funded. Getting an education loan requires collateral, and all you are required to do is to apply for a loan against property. An education loan against property is a loan where the borrower offers their house as security against the loan. Read on to learn more about the benefits, repayment method, disbursement process and how to apply for an education loan against property to study abroad.
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Benefits of Getting an Education Loan Against Property
There are numerous benefits of getting an education loan against the property; one of the major benefits includes low-interest rates and much more. Here are some of the most important benefits:
- Low-Interest Rates: Education loan against property generally has lower interest rates than other types of education loans. This makes it easier for students to repay the loan.
- Flexible Repayment Terms: There are numerous banks as well as financial institutions that offer flexible payment terms when you get an education loan against property. This simply means that you can choose repayment tenure as per your financial situation.
- Higher Loan Amount: Education loan against property also offers you a higher loan amount which can help you to cover your studying cost without any financial burden.
Repayment Method
There are various ways to repay education loans against property. Usually, banks as well as financial institutions allow borrowers to opt for the repayment option that best suits them. Some of the common repayment options are as follows;
- EMI: EMI or Equated Monthly Installment is among the popular repayment method for education loans against property. This method allows you to repay a loan by paying a fixed monthly amount until the loan is fully paid. However, the EMI amount depends upon the interest rate as well as the loan amount.
- Bullet Payment: Bullet payment is another common repayment option. This method is usually preferred by those with the financial capability to pay off their loan in one go.
Disbursement Process
The disbursement process for education loans against property is quite simple. Generally, the bank or financial institution provides a repayment option that allows you to repay the loan amount in two instalments. The first instalment is usually disbursed at the time of loan approval, and the second instalment is disbursed after the borrower has fulfilled all the requirements.
How to Apply for an Education Loan Against Property to Study Abroad?
The application process is quite simple and all you are required to do is to follow the official website of the bank for the latest updates and notifications.
You are first required to fill out the application form accurately and completely filled and then submit it to the bank with all the necessary documents required.
Documents Required
Some of the important documents required for the application process are as follows;
- identity proof,
- address proof,
- income proof,
- bank statements
- property documents.
After the loan application is approved, the bank will disburse the loan amount to the borrower.
Education Loans for Studying Abroad (Write about 2023, Indian Banks, Interest, and Eligibility)
With the increasing cost of education, numerous students look out for ways to fund education abroad. With the rising popularity of studying abroad, more and more banks in India are offering education loans to help students finance their studies.
- Most of the banks offer loans up to a maximum of Rs. 20 lakhs, with repayment periods of up to 7 years. The interest rates on these loans are usually between 11.50% and 13.50%.
- The eligibility requirement for an education loan is to first complete the 10+2 class. You are also required to show the proof of show proof of admission into an internationally recognized university or college. In addition to this, you must also have a co-applicant who will be responsible for repaying the loan in case of any default.
- By 2023, the number of banks offering education loans to international students is expected to increase. With more banks offering these loans, the eligibility criteria and interest rates may also become more favourable.
FAQs
An education loan against property is a loan where the borrower offers their property as security against the loan. This is a great way to get an education loan, as banks are more likely to provide students with better loan terms and conditions with collateral involved.
Some of the most important benefits of taking an education loan against property are low-interest rates, flexible repayment terms, and higher loan amounts.
Applying for an education loan against property to study abroad is relatively simple. The borrower must fill out the loan application form and submit it to the bank with all the necessary documents.
To explore other international student account options, stay in tune with Fly Finance. For all queries related to study abroad finances, connect us at 1800 572 126.
