A loan against property for education offers a sum you can use for your child's education. This secured loan provides funds up to 75% of the value of a property that you mortgage. In addition, the interest rates on loan against property are lower than other loans with a longer repayment period. 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 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 23 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 interest rate 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, Aadhaar card, and address proof. To prove that you can repay the loan, you also have to submit salary slips for the past 3 months and bank statements for the same period. Lastly, you have to submit a copy of the 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 application is processed faster and won’t be returned 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 be slightly higher than the value of the loan. For example, if you borrow a loan of worth Rs. 1 crore and the property that you are submitting as collateral is worth Rs. 2 crores, you’re in the clear. However, since the loan allows you to take up to 75% of the value of your property as a loan, your property must be of a marginally higher value.
Follow the application process
This loan gives you the option to apply in two ways. One method is the 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 out and submit the application form and documents, after which a representative will verify your documents and approve the loan. After that, your bank account will be credited with the amount directly. 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, make sure to carefully fill in details like your name, address, and telephone number in the application form. Filling incorrect details, intentionally or unintentionally, is likely to cause problems later.
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 18 years. The Hybrid Flexi Loan feature lets you borrow when you need it and prepay when you can.
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