The critical goal of every parent is that their child gets the best education, even if it financially exhausts them. However, sometimes parents cannot fulfill their dreams due to their eligibility to apply for an educational loan. The cost of education has risen significantly over the past few decades. Hence as parents, you should start investing as early as possible to provide the best education for your child. And, if things don’t turn out as planned, you can always avail of an education loan on a property, which eases most of your concerns regarding your child’s education.
The primary things to consider while applying for a loan on the property are the loan amount offered and the repayment policies. Quality education plays an essential part in enhancing your child’s future. However, the cost of graduating from an excellent educational institute can range anywhere from Rs. 5 lakhs to 35 lakhs nationally or abroad. In such a situation, people often bank on their valuable assets to help their financial inadequacies. For those who intend to apply for an education loan, it is ideal to apply for a Loan against property.
Here are some reasons you should apply for a loan against property to fund your child’s higher education.
It covers all the education expenses.
The term education involves multiple other expenses. Various questions arise related to the cost of education. We have seen a significant rise in tuition fees over the last decade. Admission, stationery, boarding, transport, etc., are additional expenses that concern various parents and guardians. Education loan is an apt option that eases every concern. Your child’s entire education cost can be borne with just one loan, provided you compare the current loan against the property interest rate.
Lenient eligibility criteria
Various other loans involve the end number of eligibility criteria. With an asset kept as collateral, the entire loan process gets much easier for any individual applying for a loan against property. The primary requirement is that while you apply for a loan against property, the concerned property should be in India. The applicant also should be an Indian citizen. Every financial institution may have its norms regarding the minimum salary required and the property’s status. Hence, please check the details carefully. The current loan against property interest rate could vary from 11% to 20%, depending on the various financial institutions.
Easy repayment with long tenure
Since you can choose from a tenure that ranges from 2 years to 15 years, you have ample time to repay the loan. By the time your child may also finish their education and contribute repayment of the loan. Longer tenures will lead to smaller EMIs and lesser burdens, giving you enough space for additional commitments.
There are various other flexible facilities concerning educational loans on the property. Some financial institutions may allow you to use the approved fund as and when required, and you can pay interest on only the amount utilized. There are no additional charges if you intend to foreclose the loan against the property. Consider your repayment capacity before applying for an education loan.
