Education Loan Against Property - Must Check These Important Factors

Availing a loan against property to cater to various educational expenses is an effective method to cope with rising expenditures of higher education. Essentially a secured line of credit, education loan on the property offer high loan amounts which can go up to Rs. 3.5 Crore. This high amount serves all related expenses like admission charges, hostel fees, living expenses and even traveling costs.

Borrowers opting for such loans against property products get the option to repay their debt over lengthy tenors that can go up to 20 years.

Must Read: Education Loan Against Property Interest Subsidy

Irrespective of whether an individual is opting for higher education in India or abroad, financial institutions look into multiple aspects before approving a loan application.

These important factors which also affect the rate of interest are listed below:

• CIBIL Score: This score suggests the creditworthiness of applicants. Financial institutions depend on it to decide the risk factor involved in approving an application.
• Age Of Applicant: Being a high-value loan product, financial institutions offering study loans check applicant’s age since individuals at the beginning of their career have more time to repay their loans.
• Income & Its Source: Total income, other expenditures including past debts and living expenses are all considered by NBFCs along with their place of employment to understand the repayment capability of the borrower.
• Property Value: While availing a student loan in India, NBFCs check the overall value of the property to be mortgaged and decide the loan value accordingly.

The above factors are the most crucial determinants for the approval of an education loan in India. Potential borrowers should plan ahead to fulfill their eligibility requirements by the time they apply for the loan.

Additional Read: How To Get Study Loan Against Property For Abroad