The Indian education market is one of the fastest-growing sectors across the world and is expected to reach about $180 billion by 2020 and have an augmented Gross Enrolment ratio (GER) of 50% by 2030. The country hosts about 20 of the 200 top universities across the globe. While numerous government initiatives continue to propel this robust growth, additional focus is being put on M-learning and E-learning.
Despite such endeavors, a persistent challenge while pursuing higher studies is the widening gap between the required and available funding. Thanks to leading financial institutions, aspirants can now avail education loan which is customized to help them avail such advances.
These loans are often available as secured advances which come with substantial amounts as well as attractive rates of interest. Considering that the loan against property for education comes with no end-usage restrictions, borrowers can use the funds to meet diverse expenses involved in pursuing higher education in India and abroad. It may include the cost of tuition, college fees, cost of living, etc.
Taking into account the fact that this is a form of secured advance, lenders are comparatively less stringent about meeting the required eligibility criteria, and furnishing the required documents; here are a few ways to get a study loan approved instantly –
Ensure That The Property To Be Mortgaged Is In Good Condition
Availing collateral loans like a loan against property helps borrowers have access to a high-value loan amount of up to Rs. 3.5 Crore. However, the sanctioned amount depends on the condition of the property to be mortgaged. A property lying within the serviceable area of the lender, in good condition, and of high market value ensures that lenders provide a higher LTV and approves the loan amount without delay.
Keep Your Debt To Income Ratio Well Within 50%
While availing an education loan can bridge the financial gap, repaying it can put stress on one’s budget. Thus, it is advisable for a borrower to keep their existing monthly financial obligations within 50% of their monthly income. Following this, opt for a lender who provides an attractive rate of interest and hence, pocket-friendly EMIs.
Note that a FOIR above 50% may lead lenders to either offer lesser than requested loan amount or increase the rate of interest.
Furnish The Needed Documents
With secured advances, lenders have the reassurance of repayment by liquidating the mortgaged property, and hence, they are less stringent about the required eligibility and documents. However, in the case of reputed lenders like Bajaj Finserv availing Loan Against Property for Education, requires potential borrowers to furnish a few documents. Following this, they can get instant approval of their credit amount.
Check out the list of documents that need to be furnished while availing a credit:
- IT returns, latest salary slip (salaried)
- Copy of the documents for the property to be mortgaged
- Bank account statement of the last 3 (salaried borrowers), or 6 (self-employed individuals) months
- KYC documents
Additionally, keeping the convenience of the prospective borrowers in mind, the leading NBFCs also make it convenient to qualify for a loan against property by meeting a few simple eligibility criteria.
They also bring you pre-approved offers on numerous financial products that include both secured advances like home loans, and unsecured advances like personal loans, business loans, etc. These offers make the application process to avail such finances easy and hassle-free.
Have A Healthy Cibil Score
Although having a high credit score of 750 and above is not mandatory to avail secured advances, having one ensures that you get the best terms and conditions on your financial advances. Borrowers can, thus, have access to lower rates of interest, which ensures affordable monthly equated installments.
Thus, make sure to look into how to get a student loan before applying for one and check the cost of the loan. Also, compare Fixed vs Floating Interest Rate and settle for one that caters to your financial requirements. Availing such loans provides you with multiple beneficial features like a flexible tenure, convenient balance transfer facility, and come with no end-usage restriction. It makes the advance the best possible option for students to pursue their education sans financial strains.