An educational loan against property is a secured loan availed to pay for all related expenses when one opts for higher studies abroad or within the country.
The applicant must follow some simple steps to apply for this loan. Most NBFC and financial institutions in India offer education loan against property online, further simplifying the application process.
# Application Process for an Education Loan in India
Online loan application can be completed following three easy steps -
- Navigate to the official website of the preferred borrower and fill the online application form available.
- It usually takes only a few hours for application approval, post which a representative will contact the applicant for document submission.
- After successful verification of all the supporting documents, his/her loan will get approved and disbursed within 4 to 5 business days.
However, an applicant must consider several factors before taking out a loan against property from a lending institute – if he/she will be able to meet the eligibility criteria of that lender, documents required and benefits offered along with the loan.
Although these aspects varies between lenders, a broad overlook on student loan in India can be the following –
# Eligibility Criteria
Eligibility criteria which are similar across most lending institutions are –
- Age of salaried individuals should be within 33- 58 years while for self-employed person it usually ranges between 25-70 years.
- The applicant must have Indian citizenship and reside in India to avail a study loan.
- Applicants should have a fixed source of income every month. Salaried individuals should be employed by a public or private organization.
# Documentation Required
The borrower must keep the following documents ready while applying –
- Income tax returns
- Address proof
- Latest photograph
- Identity proof like PAN
- Property documents
Loan against property enables a student to pursue their higher education without worrying about repayment since it comes with a Low interest rate combined with a long tenor period.