5 reasons to choose an Education Loan on Property for your child
Higher education can be an expensive affair, whether in India or abroad. Costs for tuition, hostel accommodation, books, travel, and other living expenses over the years can run into lakhs of rupees. In such a situation, borrowing finances can be the only alternative to breaking your savings or selling valuable assets. While an education loan may be the first option that comes to your mind, another viable solution you have is to take a education loan for higher education. This secured loan offers outstanding features and even trumps education loans in certain aspects.
Here are 5 reasons why you should choose a loan against property to fund your child’s higher education.
Get Ample Funding To Meet Every Educational Need
Professional programmes like MBAs, doctorates or master’s courses for engineers or doctors can cost a pretty penny. This cost only augments when your child studies abroad. For example, a report by a leading English daily shows that you require annual funding to the tune of 34 lakh and 25 lakh in order to send your child on an overseas programme to the US or UK respectively. This is inclusive of tuition fees and living costs.
As opposed to education loans, that may cover only tuition fees, a loan against property for high education is the one-stop solution for every need. By pledging a well-kept property, you own you can secure financing of up to 3.5 crore via a Bajaj Finserv Loan. You can use this to pay for all education-related costs and recreational activities as well.
Make Your Repayment Schedule Comfortable Via A Long Tenure
While you do not get a moratorium period with a loan against property, you can make your repayment schedule light by choosing a long tenure. The longer the tenure, the smaller your EMIs will be. With your loan coming at a small monthly cost, you can fund an outstanding higher education programme by trimming down on budgets and making certain lifestyle changes. Later, when your child begins to earn, you can use the additional finances to make prepayments and even foreclose the loan.
Enjoy Flexible Facilities That Allow You To Borrow On The Go
At times higher education programmes can be versatile, especially if the institute in question gives your children the option to earn extra credits or take additional courses.Similarly, there are plenty of paid workshops that occur during the course of an academic year. Having a loan that’s as flexible as your child’s education needs can help you pay for everything without necessarily overspending.
Also Read: Check these Education Loan Schemes for easy application
Here again, you can benefit from the Flexi facility on the Loan Against Property. A one-of-its-kind facility provided by Bajaj Finserv, this feature allows you to borrow from your sanction in parts, multiple times and pay interest only on the amounts you utilise. Additionally, you can make prepayments and foreclose your loan at nil charges and even redraw amounts should your child require more funding at any time. Then you can also repay the loan as interest-only EMIs and pay the principal only at the end of the tenure. This will further reduce your EMI burden by 45%.
Obtain The Loan Without Needing To Meet Complicated Eligibility Terms
Loan against property eligibility criteria are relatively simple when compared to those of an education loan. To obtain an education loan, your child must answer the necessary entrance exams, clear them well, secure admission with a reputed institute and opt for a course that is job-oriented. While the terms differ from one lender to the next, the common denominator is that lenders will finance only those they consider deserving.
In comparison, you should be able to secure a loan against property with ease by meeting the personal, financial and income-related criteria set by your lender. Once you meet these criteria all you need to do is to check documents required for loan against property to support your application.
Benefit From Speedy Lump Sum Loan Disbursals
Upon getting your loan against property application approved, you should normally get your finances disbursed to you within a few days. You can then use this lump sum amount to strategically meet your needs whether it is paying tuition fees and living costs, booking air tickets, paying VISA fees or covering entrance exam charges. This way the liquidity you get can be considerably more than when you take an educational loan. This is because education loans are often disbursed in parts directly to the university’s admissions office and only cover academic expenses.
To get a loan against property on customised terms, check your pre-approved loan offer from Bajaj Finserv. A single-step verification will give you instant approval and hasten the application procedure.
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