Education Loan Schemes

You can easily apply for an education loan on property for abroad studies by fulfilling only a few documentation and eligibility requirements.

Lenders may require proof of admission, scholarship letter, foreign exchange letter, and other relevant documents as a confirmation of abroad studies during the education loan for abroad application process.

Other documents that you have to provide to apply for a study loan include –

• Property documents you are mortgaging.

• Aadhaar or PAN.

• Proof of address documents like electricity bill, life insurance policy, municipality tax, water bill, etc.

• Income tax returns.

• Bank account statements – 3 months for salaried applicants and 6 months for self-employed applicants.

• Latest salary slips.

Salaried individuals have to be between 33 and 58 years of age while self-employed individuals have to be between 25 and 70 years of age to become eligible for an education loan for abroad studies.

The age limit for an education loan on property differs based on your occupation or source of income, viz. –

• Salaried applicants – 33 to 58 years.

• Self-employed applicants – 25 to 70 years.

Salaried applicants must be employed with a public/private company or an MNC while self-employed individuals must have a regular source of income to fulfil the education loan on property eligibility.

Additionally, you have to provide a few documents to apply for a study loan –

• Bank account statements for the last 3 months for salaried individuals and 6 months for self-employed.

• Latest salary slips.

• Aadhaar or PAN.

• Address proof – Latest electricity bill, water bill, property tax receipt, etc.

• Income tax returns.

• Documents of the property to be mortgaged.

Apply for a secured education loan in India with a credit score around or above 750 to increase your chances of approval even more.

It is not mandatory to avail insurance for education loan on property. However, availing an insurance policy safeguards you against any unforeseen circumstances that can hinder your repayment.

Having an insurance policy in place can cover your loan repayment in case of a fatal event. In such cases, the liability of repayment will not be extended to your family. Instead, the insurance company repays the education loan in India on your behalf provided the claim satisfies the policy terms and conditions.

Often, lenders urge you to avail an insurance cover when you apply for a secured education loan. The premiums are included in the EMIs, which eliminates the need to pay them separately. However, the same will make the monthly instalments somewhat expensive.

It is advisable to have an insurance policy in place when you apply for a secured education loan.