Opting for an Education Loan Against Property

Factors To Consider Before Opting For Education Loan Against Property

WHAT IS EDUCATION LOAN? Considering the rising cost of education in Indian and abroad, studying at the top universities is increasingly becoming a challenging situation. As per a study by the Indian Statistical Institute, almost 2.6 Lakh Indian Students are pursuing higher studies abroad in 2019. This number is most likely to surpass 6 Lakh by 2020. Although higher education overseas seems a lucrative proposition, the cost involved is steep.

Now, opting for an education loan might seem like an attractive funding option due to a hefty sum involved. However, mortgaging an asset is not sufficient to get your loan application sanctioned with cost-effective terms. Several factors, like credit history, income comes into play in determining how affordable your loan will be.

Things to know before applying for Education Loan

Factor I: Check Your Credit Score Before Applying Factor II: Learn About the Rate of Interest Factor III: Estimate Your Needs & Plan Your Repayment Before Applying Factor IV: Choose a Lender After Thorough Comparison Factor V: Keep a Tab on the Tax Benefits

Eligibility Criteria Education loan 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