Education loans are dedicated financing options for students who require funds for their education in India or abroad. These credits provide the necessary assistance to students in need of substantial funds to pursue education in premier institutions, either in India or abroad.
Alternatively, you can also opt for an education loan against property. In such case, the borrower mortgages a plot or property to avail the funds. The borrower is free to use these credits availed to finance his/her education, as well as cover ancillary costs like travel, lodging, and daily expenses.
Since the mortgage factor acts as a security against the loan, the borrowable sum of a loan against property is much higher than that of an ordinary study loan. Borrowers also get to enjoy a comparatively lower interest outgo on loan against property. This is because mortgage loan rates are always cheaper than education or study loans in India.
You can also draw a comparison of your interest outgo in individual cases by using an education loan EMI calculator and a LAP EMI calculator. You need to enter the correct figures of principal, rate of interest and tenor to check your EMIs.
As a smart borrower, you must also compare the different property loan interest rates in the lending market to select the perfect lending source.
On a LAP loan, you also get to enjoy a longer tenor for burden-free repayment. This also means lower and much affordable EMIs. Estimate the cost of your education beforehand to understand your priorities first. Then consider all the above-discussed factors to make a better choice between a loan against property and an education loan.
Additional Read : Factors to Check Before Applying for an Education Loan Against Property
