India’s demographic advantage of having a high GER and a large youth population contributes to the escalating growth of its education sector. The size of this industry is set to touch $101.1 billion by 2019, and a substantial share of the same is owing to the contribution of the higher education sector. At present, the nation is home to approx. 36.64 million students in the higher education segment.
However, the exponential growth of the Indian economy and the subsequent rise in the PPP (Purchase Power Parity) results in more expensive education. Meeting such high educational expenses often takes a toll on an individual’s savings. Hence, prospective aspirants are referring to reputed lenders who offer loans against property for education. This student education loan on property comes with a hefty credit amount that is adequate to finance various expenses incurred while pursuing higher education in India or abroad.
Considering that this education loan is a secured one, lenders are less stringent about the eligibility criteria, CIBIL score, and documents required. However, in case you are looking to ensure that your loan amount gets approved instantly, it is essential to provide the required list of nominal documents required to apply for a LAP.
List of Required Documents
With credit borrowers should ensure that they can meet their education financial goals sans any stress on the budget. It involves the mortgage of a high-value property which –
- Is in good condition
- Lies within the serviceable range of the lender, and
- It has a prospective market value.
Following this, lenders assess the property and may even offer an LTV of up to 75% of the property’s market price. Also, this high credit amount comes with no end-usage restriction and hence can be used to fund diverse expenses involved in pursuing offshore educational courses.
Lenders, thus, try to streamline the application process and fast track the processing time by keeping their list of documents to a bare minimum. Such documentation revolves around 2 basic aspects – personal and property.
Loans against Property for Education offered by reputed lenders like Bajaj Finserv are available for both salaried and self–employed individuals. However, the eligibility criteria and documentation are kept different as per their source of income. Let’s take a look at the education loan details –
- Salaried Applicants – Potential borrowers working in a privatized or public sector can avail of the multiple facilities provided by their advance by furnishing personal documents including IT returns, latest salary slip, KYC documents, address proof, and bank account statements of the last 3 months. All that they need to qualify for an education loan against property by meeting a few essential eligibility criteria that include being within 33-58 years of age and reside in any of the lender-specified cities in India. Meeting such minimal eligibility requirements can help them access to up to Rs. 1 Crore as credit amount.
- Self-Employed – Independent potential borrowers require producing personal documents like KYC, bank account from last 6 months and residential proof. Considering that they’re able to show a regular source of income and within 25-70 years of age provides them with access to avail high credit amount of Rs. 3.5 Crore that comes with no end-usage restriction. The sanctioned student education loan amount can thus be used to finance the diverse expenses involved in pursuing any higher education courses in India or abroad.
Both individuals, irrespective of their income source, are liable to produce the required copy of documents of the property to be mortgaged.
- Sale agreement
- Completion certificate, if required in case of construction projects on the property
- Sale deed
- Building and land tax paid receipts
- Contract of sale with the builder
- The general power of attorney
- No objection certificate
- Possession letter
- Copy of building plans
- Khata certificate or extract
- Allotment letter
- Encumbrance certificate
- Occupancy certificate
With the proper documentation and an in-depth idea of how loan against property is processed, borrowers can make an informed decision while choosing their lenders for funding education in India. It is imperative to go for lenders such as Bajaj Finserv to enjoy additional benefits like flexible tenor options, easy balance transfer facility, etc.
Bajaj Finserv also brings you pre-approved offers that make the application process to avail these finances easy and quick. These offers are available on multiple financial products that include both secured advances like home loans, and unsecured credits like personal loans or business loans. You can take a look at your pre-approved offer by providing a few essential details like your name and contact number
Despite the host of benefits that such advances come with, borrowers need to look in and opt for credits that not only require minimal documentation but also cater to your educational financial goals. Before applying for the education loan must check the documents required for education loan. Furthermore, prospective borrowers need to ensure a convenient monthly equated installment by availing either a fixed or a floating rate of interest one as per their current finances and the current lending rates. Remember to reduce your debt-to-income ratio to within 50% and consolidate existing loans if any before applying for a loan against property.