As per a recent report, a casual labourer will need to channel almost 40% of his/her total earnings to meet the education expenses of two children. This data indicates a sharp increase in the cost of education in the country. In this situation, availing an education loan against property can be lucrative as the approved funds are substantial enough to cover related expenses.
One of the biggest challenges a borrower faces is managing funds while paying EMI on LAP for education. Lack of accurate calculation can create further confusion regarding repayment tenor.
Using a calculator for education loan available at a preferred lender’s site can help mitigate this concern. Again, a borrower can make the most out of this credit form by understanding the linked factors.
Factors to check before making an education loan application
Deciding on a loan amount is a crucial factor before applying for an education loan against property. Usually, a borrower can receive up to Rs.3.5 crore against this type of education loan for abroad studies. One must avoid applying for funds more than what is required to avoid debt risks.
Few basic documents required to avail this loan include KYC papers, salary slip, bank statement, ITR, mortgage documents, etc.
Individuals must always check education loan eligibility to determine whether they can make an application. The parameters can vary according to salaried and self-employed individuals.
The repayment tenor for salaried individuals can extend up to 20 years and 18 years for self-employed.
Apart from the mentioned factors, a potential education loan borrower must keep a tab on the updated requirements. This would ease out the loan application process further.