The tuition fees in India have witnessed a massive increase of about 67% on average between the fiscal 2013-14 and 2017-18. Along with that, the cost of studying at a foreign university has also increased significantly.
Funding such massive expenses can burn a hole in the pocket of any individual. Numerous students are now availing financial products to meet such costs conveniently.
An education loan on property is one such financial product that entitles a borrower to fund all the expenses associated with higher education. It comes with a wide range of benefits that make it the ideal tool to meet such financial requirements.
Here are a few reasons regarding why you should opt for a loan against property for higher education.
High Loan Amount
Higher education, especially abroad, can be costly. Borrowers can avail a loan amount of up to 75% of the collateral value in case of such credits. They can use this amount to fund any of the expenses related to their course, including tuition fees, accommodation cost daily expenses, etc. Borrowers do not need to avail multiple credits, which will increase their financial burden.
Low-interest Rate Of Education Loans
A loan against property comes with a significantly lower rate of interest compared to other unsecured financial products. It reduces the total cost of a loan considerably, thereby reducing the financial burden on borrowers owing to the affordable EMIs.
Extensive Range Of Tenure Options
Financial institutions offer flexible tenure ranging from 2 to 20 years in case of loan against property for education. Borrowers should be aware of the fact that lenders may charge a higher interest rate in case of a loan against property with a longer tenure.
A shorter loan tenure may increase the immediate EMI amount, but it reduces the total cost of a loan. On the other hand, a long tenure may reduce the EMI amount, but it significantly increases the interest part associated with the credit.
Borrowers can make a repayment strategy according to their financial capacity and determine the ideal tenure of a loan against property.
Flexi Loan Facility
Universities usually charge tuition fees once in a semester or year. If a borrower withdraws the whole disbursed amount at once, they will be liable to pay interest on the entire amount.
Bajaj Finserv offers Flexi Loan facility to address this situation. It entitles a borrower to withdraw the total disbursed amount in multiple instalments according to their needs. They have to pay interest only on the amount they withdraw.
Also, borrowers can opt for interest only EMIs and repay the principal part at the end of the tenure. It ensures that borrowers can repay the debt according to their convenience without any financial burden. They can repay the amount whenever they have surplus funds. Also, they can again avail credits from the restored loan limit any time during emergencies.
Bajaj Finserv also provides pre-approved offers on such credits to simplify the process and to make it fast. Pre-approved offers are valid on several financial products and services including secured home loans and even on unsecured advances like personal loans and business loans. You can check your pre-approved offer by providing only a few essential details.
Facility To Avail Additional Funds If The Need Arises
Pursuing higher education, especially in a foreign country, can come with a range of unexpected financial requirements. Borrowers can avail a top-up facility on their existing loan against property for education in India to fund such expenses.
Suppose a borrower avails an amount less than the loan limit approved by a lender, then they are entitled to avail the remaining amount if any financial need arises.
Financial institutions provide pre-payment facilities so that borrowers can repay the debt whenever they have surplus funds. They can either opt for part pre-payment to repay a portion of their principal amount or foreclosure to repay the whole principal amount at once. They should understand the education loan details before availing such credits to have a clear idea regarding the charges involved. Also use the education loan calculator to calculate the EMI you have to pay.
The points mentioned above should give you a decent idea about the reasons why you should avail an education loan in India against a property. Make sure that you check the loan terms of various lenders before you avail such credits.