Pune: Overseas education continues to be an attractive proposition for undergraduate and postgraduate students.
However, international programmes are expensive, and depending on country your child prefers, be it US, UK or Singapore, you will need a corpus of at least Rs 20 to 30 lakh to pay for all expenses. Naturally, financing higher studies can be difficult, and in the absence of a scholarship you may have to look for a student loan to ensure that your child's further studies aren't compromised upon. One option you have is to take a Loan against Property for education from Bajaj Housing Finance Limited, as this solution offers ample financing and has accommodative repayment terms.
Read on to know how a Loan against Property from Bajaj Housing Finance Limited can finance your child's education abroad:
What is a Loan against Property?
A Loan against Property is a form of credit backed by an immovable asset that leverages the market value of the property you own to give you access to substantial finance. Typically, you can mortgage a residential or a commercial space you own in order to obtain the secured mortgage loan. On offering it as security, valuation is undertaken, and a loan is granted on the basis of a predetermined loan-to-value (LTV) ratio. If your property is worth Rs 5 crore and the LTV ratio is 50 per cent, for instance, you can get funding of up to Rs 2.5 crore subject to eligibility as per underwriting norms
Why you should take a loan against property for education
A Loan against Property is a loan that comes with no restrictions, and you can use the substantial sum as you deem fit. When compared to other forms of funding, even a regular education loan, a loan against property has certain features that make it best suited to finance higher studies. Take a look at what some of these features are:
* Ample financing: With a Loan Against Property from Bajaj Housing Finance Limited, education costs, be it tuition fees, living expenses or insurance premiums, can be easily met as you get access to a large loan amount, up to Rs 3.5 crore subject to underwriting and collateral policy of company. An education loan, on the other hand, may not necessarily offer access to this high a sum.
* Easy repayment options: When you take a Loan Against Property, Bajaj Housing Finance Limited offers you a flexible repayment tenor ranging from 2 to 18 years. You could opt for a short tenor to limit your total interest payment or a long one to ease cash flow management. Further, taking into consideration that your child is likely to start working within a few years, you can plan for repayment comfortably.
* Convenient Flexi facilities: With Bajaj Housing Finance Limited's Flexi Dropline feature, you can borrow and pay interest only on the amount of the loan that is used. Also helps you manage your finances efficiently as you can opt to pay EMIs through the tenor and pay the principal at the end.
* Easy eligibility terms: Unlike education loans that demand outstanding academic performance and admission to a job-oriented course, you can get a loan against property on simpler eligibility terms. Typically, your financial profile and your property's market worth carry the most weight.
How to apply for a Loan against Property for education
Once you meet the eligibility terms all you need to do is:
* Fill out an online application form. Wait for an executive to contact you in 24 hours
* Get approved for a loan in 48 hours and submit the necessary documents to complete the process
Once your application is verified and approved, you receive a quick disbursal. You can avail quick access to financing further when you check your pre-approved offer. On submitting basic details, you get speedy financing through a customised deal.