According to the data released by the Government of India, around 5.53 lakh students are currently studying in abroad countries to pursue their higher education.
Based on the statistics revealed by the Reserve Bank of India, the expenditure of Indian parents into sending their children for overseas education has led to a rise in the overall spending by 44% in 2017-18 from 2013-14.
The expenses involved through the entire duration of the academic course held abroad will require a substantial investment from the student’s end. To cope up with such high-end outlays, individuals can opt for education loan against property for abroad studies and have access to a high loan amount against their collateral.
Acknowledging this steady inclination of attaining foreign degrees amongst students, the Government of India has joined hands with several financial institutions to facilitate monetary assistance for students aspiring for higher education abroad.
Government-backed education loan offers –
1. Padho Pardesh Scheme
The Government of India, together with the Ministry of Minority Affairs, has provided education loan with a subsidised interest rate for students who are studying overseas and also belong from minority communities. The beneficiaries will have an added advantage of complete relaxation on the interest payment until the moratorium period.
2. Dr Ambedkar Central Sector Scheme of Interest Subsidy
This scheme was initiated to promote higher education abroad for meritorious students hailing from Other Backward Classes (OBCs) and Economically Backward Classes (EBCs). The loan under this programme can be availed for students who are willing to pursue their Masters, PhD and M.Phil. studies abroad.
Alternatively, students can also avail education loan against property for abroad studies from lending institutions where they can gain access to a substantial amount to finance educational expenses till the end of the course.
Reputed financial institutions like Bajaj Housing Finance Limited provide Loan Against Property, to empower students with the finances required to study abroad. It offers a high loan amount with an affordable interest rate, thereby ensuring the convenience of the students and help them manage their finances better.
It also facilitates its customers with pre-approved offers that quickens the application process and saves ample time. These offers are available on several other financial products including business loan, home loan, personal loan etc. You can check your pre-approved offers by entering your name and contact details.
Documents requisite for education loan against Property
List of documents needed to apply for loan against property are enumerated below:
- Documents of the property kept as collateral.
- Address proof of the loan applicant.
- Aadhaar Card/Driving License/PAN Card/Voter ID Card of the individual as an identity proof.
- 2 passport sized photographs of the applicant.
- Current and previous year’s bank account statements.
Apart from the essential documents, students also have to fulfil the eligibility criteria defined for the same.
Education loan against property eligibility criteria
To secure advances against collateral students have to qualify for the eligibility criteria, which are listed below:
- A salaried employee has to be within the age bracket of 33 – 58 years to secure a loan against property, while a self-employed individual should fall within 25 – 70 years of age.
- The applicant has to be an Indian resident.
- The candidate should have a good credit history featuring a score above 750 or above.
Enrolling yourself in one of the best American universities to pursue your undergraduate degree or post-graduation qualification can prove to be an upscale investment. Guardians, to meet such high expenditures, can avail education loan against collateral.
With easy repayment options, an education loan against property for abroad studies has become a viable option for students who are intending to pursue their higher studies overseas. It enables the borrower to choose the tenor according to their financial solvency and affordability.
Borrowers, to safeguard their finances and manage it effectively, should consider computing their monthly pay-offs using an EMI calculator to avoid any further financial ambiguity.