According to a survey conducted by HSBC, Indian parents on average spend approximately Rs. 12.22 Lakh for the educational expenses of their child. Furthermore, the costs of studying in a reputed institution abroad can come with additional significant costs.
An education loan for abroad studies over the past few years has helped students to pursue their desired careers. Owing to this reason the number of Indian students pursuing a higher education course in a foreign country stands at 5.56 Lakh as of March 2019.
Benefits Of Availing An Education Loan Against Property
- High Loan Amount
Pursuing a higher education course abroad can be exceptionally expensive depending on the country and institution. Hence availing a loan against property for higher education can turn out to be a wise idea. As it is a secured form of credit, financial institutions can offer a loan amount of up to 80% of the current collateral value.
You can use the funds to meet any of your expenses, including tuition fees, travel costs, accommodation costs, etc. This high amount ensures that you are not required to avail of multiple credits to fund your required expenses. It also reduces the financial burden considerably.
- Flexible Tenor
An education loan for studies abroad is a long-term commitment. Hence, such credits offer flexible tenor options to ensure that a borrower can repay their debt conveniently. A shorter tenor ensures that the debt obligations are considerably reduced, enabling you to repay a loan faster.
On the other hand, a longer tenor reduces the EMI amount, ensuring that you can repay your debt conveniently. Financial institutions can offer a loan tenor of up to 20 years; hence, determine the idea loan tenor accordingly to make the most of your credit.
- Flexi Loan Facility
Reputed universities usually charge tuition fees once in a year or a semester. Hence, if you withdraw the total disbursed amount at the start of your education loan for studies abroad tenor, you will be liable to pay interest on the entire amount.
To address this situation, NBFCs have introduced the Flexi Loan facility. You can withdraw the disbursed amount in parts according to your requirements. The interest rate will be charged only on the amount you utilize.
You can repay and re-withdraw the loan amount as many times as you like throughout the loan tenor. Also, you are entitled to pay only interest as EMIs and repay the principal when the tenor ends.
They also provide pre-approved offers to ensure that the process to avail them is straightforward and less time-consuming. Pre-approved offers come with a plethora of financial products like business loans, personal loans, home loans and more. Submit a few essential details to check your pre-approved offer.
- Top–Up Loan
Studying in a foreign country can come with unforeseen expenses. With the constant rise in the number of tuition fees charged by reputed universities across the globe, gauging the exact amount of funds required can be a challenging task. Also, there can be a medical emergency anytime during the course tenor.
Availing another credit at that point in time can be troublesome. Hence, financial institutions offer a top-up loan amount of up to Rs. 50 Lakh on loan against property for education to help individuals to fund such expenses.
Along with the benefits mentioned above, such credits come with an affordable interest rate that ensures it is affordable for a borrower.
Education Loan Eligibility Criteria
You are required to meet the following eligibility criteria to avail of a loan against property for education from any leading financial institution.
- If you are a salaried employee, your age must be between 33 to 58 years for applying for such credits. The age bracket lies between 25 and 70 years in the case of self-employed individuals.
- You are required to be a salaried employee working in an MNC, private sector or public sector. If you are a self-employed individual, you are required to hold a stable income source.
- You are required to be an Indian resident to avail of such credits.
Additional Read: How to Get Education Loan Against Property?
An education loan for studies abroad has benefitted several students in this country over the past few years to pursue their desired course. If you want to avail such advances, compare the lending rates offered by various financial institutions to ensure that make the most out of it.