Education Loan: Schemes and Subsidies

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With the combined efforts of the Indian Government and the Ministry of Education, students can now avail finance for their higher education. Parents can also apply under various education loan schemes to secure funding for their child’s education.

Financing higher education gets more accessible with the facility of education loan subsidy that reduces the burden of credit. The government also facilitates various education loan repayment support schemes through different financial institutions.

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Different Education Loan Schemes You Can Choose:

  • Vidyalakshmi Scheme
    Through the Vidyalakshmi education loan scheme, the government aims to help all students from lower income or middle-class families to continue their higher studies without any funding constraints. Register on the Vidyalakshmi portal and apply to a maximum of three lenders at a go.
  • Padho Pardesh Scheme
    Grab the opportunity to study abroad with the Padho Pardesh scheme, specially designed for minorities.
  • Dr. Ambedkar Central Sector Scheme of Interest Subsidy
    This scheme falls under the education loan interest subsidy scheme category for economically and other backward classes to help them study abroad.
  • Central Scheme of Interest Subsidy for Education Loan
    Get this education loan interest subsidy to pursue your dream career. Finance your studies in technical or professional courses with this interest subsidy scheme, designed for economically weaker sections of society.

Alternatively, if you are falling short of finance to fund your own or your child’s overseas education, opt for Bajaj Finserv’s Loan Against Property for Education.

Features and Benefits of Loan Against Property for Education

Availing of this loan is affordable and convenient for the following reasons:

  • Padho Pardesh Scheme

    Requires minimal documentation

    You need minimal paperwork to avail a loan against property for education from Bajaj Finserv. Document collection is made easier with our doorstep service, as well.

  • education loan

    Gets you a high sanction

    Fund your child’s education at their preferred college or university with a high loan amount against your property’s value.

  • education loan calculator

    Comes with a long repayment tenor

    Get a repayment tenor of up to 20 years when you apply for this loan. Opt to prepay in full, or part-prepay this loan as per your convenience, at minimal charges. Use the Loan Against Property EMI Calculator to know your monthly outgo beforehand.

  • student loan

    Gives the benefit of a high-value top-up loan with balance transfer facility

    Transfer the outstanding balance of your current mortgage loan and enjoy a comparatively lower rate of interest with Bajaj Finserv. Also, avail a top-up loan of a high value and finance extra expenses effortlessly.

  • Even if you choose a student loan scheme offered by the government, you may opt for our education loan on property to enjoy these benefits.

Eligibility and Documents – Loan Against Property for Education

Get hassle-free approval on your application for a education loan on property by meeting the minimal documentation and easy mortgage loan eligibility requirements.

Be it any education loan, you can always look for an education loan repayment scheme to reduce the financial burden of EMIs. Reach out to Bajaj Finserv for your educational financing needs and get flexible payment options.

How to Apply for Loan Against Property for Education

Simply fill up the online application form to apply for a loan against property for education from Bajaj Finserv.

Education Loan Schemes: FAQs

How can I apply for an education loan on property to study abroad?

You can easily apply for an education loan on property to study abroad by fulfilling just 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 must provide to apply for a study loan include –

  • Property documents of the asset you are mortgaging

  • Aadhaar card or PAN card

  • 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 – for salaried applicants only

Salaried individuals have to be between 28 and 60 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 upper age limit is considered as the age at the time of maturity of the loan

Is there any age limit for education loan on property?

The age limit for an education loan on property differs based on your occupation or source of income, and is as follows –

  • Salaried applicants – 28 to 60 years*

  • Self-employed applicants – 25 to 70 years*

*The upper age limit is considered as the age at the time of maturity of the loan

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 criteria.

Additionally, you have to provide these 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 card or PAN card

  • 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 above 750 to increase your chances of approval even more.

Is it mandatory to take insurance for education loan on property?

It is not mandatory to buy insurance for education loan on property. However, availing of 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, this can make the monthly instalments somewhat expensive.

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