What do I need to do to Apply for a Loan Against Property for Education?
  • SUBSCRIBE
  • WHAT TOPICS ARE YOU INTERESTED IN?

    Step 1 of 3

    NEXT Skip

    HOW OFTEN WOULD YOU LIKE UPDATES ?

    Step 2 of 3

    EMAIL ID

    Step 3 of 3

Get The Latest Updates

SUBSCRIBE

What do I need to do to Apply for a Loan Against Property for Education?

  • Highlights

  • Match the eligibility criteria for a loan against property

  • Next, gather and submit all necessary documents

  • Ensure your property value is higher than the loan you seek

  • Complete the application carefully and correctly

A loan against property for education offers a sum that you can use for your child's education. This secured loan offers funds up to 75% of the value of a property that you mortgage. The interest rates on loan against property are lower as compared to other loans and has a longer repayment period too. This makes your EMIs more affordable and thus makes the loan a convenient source of finance. Here's what you need to do to apply for a loan against property for education.


Meet the eligibility requirements

Before zeroing in on a loan, see if you’re a good fit for it. Matching the loan’s eligibility criteria is the first step in the application process. To avail this loan, you must be an Indian resident, at least 25 years of age, with a regular source of income. If you check all these boxes, you can move on to the next step. If not, you run the risk of receiving a higher rate of interest or your application being rejected.

Submit the necessary documents

Once you establish your eligibility, you must submit pertinent documents. This step requires you to submit important documents like the application form, PAN card, Aadhar card, and address proof. To prove that you can repay the loan, you also have to submit salary slips of the past 3 months and bank statements pertaining to the same period. Lastly, you have to submit a copy of papers of the property that you are pledging.

Additional Read: List of Documents Needed To Apply For A Loan Against Property

Make a checklist of all these documents and organise them. This will ensure that you are prepared. Your application will be processed faster and won’t come back to you because of missing documents.

Ensure that your property matches the value of the loan

Owning a property is a requisite when you want to take this loan, but its value must match the value of the loan as well. For example, if you are borrowing a loan of worth Rs.1 crore and the property that you are submitting as collateral is worth Rs.2 crore, you’re in the clear. This is because the loan allows you take up to 75% of the value of your property as a loan. So, your property must be of a marginally higher value.

Loan Against Property for higher education

Follow the application process

This loan gives you the option to apply in two ways. One method is offline application and the other is online. Both the procedures are relatively simple and take no time to complete. The online procedure only requires you to fill and submit the application form and documents, after which, a representative will verify your documents and approve the loan. The amount will then be credited directly into your bank account. The offline procedure involves sending an SMS to the lender. A representative will then get in touch with you and take the process forward.

Additional Read: How is A Loan Against Property Processed?

If you’re choosing the online procedure, take care to fill details like your name, address and telephone number in the application form correctly. Filling incorrect details, intentionally or unintentionally, is likely to cause problems later on.
Follow this checklist and maximise your chances of receiving a loan against property for education. Bajaj Finserv offers Loan Against Property for Education with flexible tenors of up to 20 years. The Hybrid Flexi Loan feature lets you borrow when you need and prepay when you can.

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?