India, as a nation, has progressed much in the last 7 decades after independence. Nowhere has this progress been starker than in the education sector. When the British left India in 1947, the literacy rate of the country was a mere 12%.
Today, India is one of the largest economies in the world, in no small part due to the exponential increase in the literacy rate. As of 2018, India’s literacy rate stood at an impressive 74.04%.
The higher education rate in India is comparatively low, but increasing at an encouraging pace. More and more individuals are now opting for education loan to fund their studies at premier educational institutions around the country and beyond.
Loan for Higher Education – Need Of The Hour
A majority of advanced education institutions in India are privately owned, where the fees structure is typically on the upper side. Even premier government institutions such as the IITs and IIMs charge a hefty fee, in the range of several lakhs of rupees.
As such, the cost of education loan is often beyond the means of a vast majority of students. Obtaining an education abroad is even more financially challenging. Students have to be particular about managing their finances better while studying abroad. Apart from tuition fees, which in itself can be pretty high, students have to bear the cost of accommodation and other daily costs associated with living in a foreign country.
A higher education loan is often the only recourse for students pursuing their higher education. Several leading NBFCs, including Bajaj Finserv, offer Loan Against Property for Education at favourable terms for students.
Here’s how you can avail a study loan in India in 3 easy steps.
A.) Research Your Loan Options
As already mentioned, there are several financial institutions in India who offer this type of credit. You must have a fair idea of all the options available before finalising on your lender.
NBFCs like Bajaj Finserv offer feature-rich education loans on property with favourable terms so that repayment doesn’t become too difficult for students. You can avail a loan amount of up to INR 3.5 Crore against minimal documentation. There are several other benefits such as flexi loan and balance transfer facilities which make these advances a tempting option.
This premier NBFC also brings you pre-approved offers, which make the application process free from any complications, thereby helping you save on time. Such offers are available on a vast range of financial products such as business loans, home loans, personal loans, etc.
B.) Check Eligibility and Documents Required
Every financial institution has a set of eligibility criteria that an individual must fulfil to avail a study loan against property. You must check these eligibility criteria before you apply for your loan. Given below are a few general eligibility criteria that are common across most financial institutions:
● There is an age limit, which typically ranges between 33 and 58 years for salaried individuals and 25 and 70 years for self-employed people.
● The applicant must be a residing citizen of India.
● Salaried individuals must be employed in an authorised organisation in the formal sector while self-employed individuals must have a stable business with a regular and uninterrupted source of income.
C.) Apply Online
A significant advantage of a loan against property for education in India is that the application process is entirely online. You just need to fill an online form, following which a representative of your financial institution will get in touch with you and guide you through the remainder of the process. Your loan will be approved within the next 48 hours, after which you have to submit relevant documents required to apply for a loan against property to the representative of your lender.
Hence, the above mentioned procedures for how to apply for education loan will help you to avail the loan in an easier way. If you are eligible according to the criteria set forth by your lender and present all the supporting documents, you will encounter no difficulty in availing your secured education loan amount. Use it wisely to fulfil your dream of studying in a higher educational institution in India or abroad. Don’t allow the shortage of funds stifle your ambition.