Banks have become cautious about the disbursement of student loans. The situation has primarily arisen due to the rise of unemployment.
The ability of those who have already availed of conventional education loans to repay on time has drastically reduced. This way, non-performing assets (NPAs) have gone up in the last 1.5 years.
It is where banks have become cautious about sanctioning an education loan for abroad studies. They don’t want to initiate a loan with fewer chances of timely repayments.
What is the solution then for people looking to apply for an education loan? You can apply for an education loan against property.
Read on and know more about it!
What is the education loan against property?
An education loan against property is a one-stop solution to address all requirements of quality education.
Once you apply for an education loan against property, you can get an amount as higher as up to Rs.1 crore. The amount may vary as per your eligibility and the internal policies of lenders.
An education loan against property is a secured debt. An education loan for higher studies interest rate is on the lower side. It means you can always manage your outlays by paying reduced EMIs.
Education loan calculator for eligibility and EMI is available on a lender’s website. This way, you can arrive at your exact education loan eligible amount and the EMI figure before availing of the loan.
What are the benefits of an online education loan against property?
The education loan against property is loaded with customer-friendly benefits. Let’s take a look:
1. A large loan amount
Applying for an education loan against property can help you to meet all expenses of overseas education. From tuition fees to accommodation to air tickets to more, the money out of this loan could be used for all. There are no restrictions on how you use the money if it’s for legal purposes.
2. Money in your bank account within 96 hours
The education loan against property approval is given faster if you are an eligible candidate. Once you have the approval, the education loan against property money gets credited into your bank account within 4 days. Hence, there is no need to wait for ages when you need funds urgently.
3. Flexibility to make repayments
Applying for the online study loan against property does not mean you need to repay the loan faster. Yes, you do not have to strain your wallets while paying off EMIs. It is because top lenders let you repay the loan amount over a tenor between 2 to 20 years.
4. Easy balance transfer facility
If you already have an education loan against property active and paying a higher interest amount, you can switch your lender. This way, you can enjoy lower education loan against property and pay reduced EMIs. You can also avail a higher value top up loan to cover other financial needs at a lower rate and a tenor like your active loan.
5. Flexi dropline feature
Another benefit of applying for the education loan against property is that you can borrow an amount from your limit and pay only interest. This way, you can bask in the freedom of managing your finances efficiently and pay only interest as EMIs.
Once you apply for the education loan against property, you can also manage the loan account online. It is possible via the customer portal of your lender and to know various details like amount to repay, EMIs paid, and even lodge and track complaints.
If your bank is not sanctioning your traditional education loan, you can always procedure a significant amount. All that you need to do is – apply online for the education loan against property with a reputed lender.