Financing higher education can be an expensive affair. The cost of higher education today is 4 times more than three decades ago. However, the exceptional advantages of such an opportunity make it worth every penny spent. As you may not have the funds required to pay for your child’s access to a top-notch curriculum and networking opportunities, you can turn to one of two funding options: an education loan and a loan against property for education. However, ensure you have the documents required before applying to avoid hiccups in the application process.
To know what you need to have handy, look at the list below for each of these funding options:
When you take an education loan
The documents required for an education loan include:
- Duly filled application form
- Bank statements
- Passport-sized photos
- Photo Id
- Residence proof
- Academic documents
- Proof of admission
As you can see, certificates required for verification are a common aspect of an education loan. But this means if you need the funding before the admission begins to apply for a VISA or pay for other costs, you may not be able to receive a sanction. Additionally, you also need to submit proof of income as a co-applicant, even if the education loan is in your child’s name.
Some education loans are stringent and require quite a few documents to prove admission before sanctioning the loan. Further, some lenders sanction the funding and send the amount directly to the university or education institute instead of the applicant once the education loan documents are submitted and verified.
Additional Read: Education loan schemes for lower student loan amount
When you take a loan against property for education
Education loan requirements of top lenders like Bajaj Finserv are as follows:
- PAN card/ Aadhaar card
- Address proof
- Copy of the property’s documents
Additionally, as a salaried individual, you must submit your salary slips, bank statements for the last 3 months, and IT returns. If you are a self-employed individual, you need to submit your bank account statements for the past 6 months.
Regarding education loan requirements, a loan against property for education demands minimal documentation and can also offer lower interest rates as it is a secured loan. What’s more, when you apply with top lenders like Bajaj Finserv, you can enjoy funding as much as Rs. 5 crore* per eligibility at nominal interest rates with repayment tenor up to 20 years. This helps you access a higher loan amount and enjoy longer tenor as an education loan covers only 75%-95% of the cost and has a tenor of only up to 15 years.
Further, the Flexi loan facility enables you to choose interest-only EMIs for the first few years of repayment. Further, you incur interest only on the amount you use from your sanction, cutting expenses even more. You can instantly get started with a customised deal if you need an education loan.
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