How to Get a Student Loan? Know Before You Take One!
As per CRIF High Mark, which is a credit bureau approved by the RBI, education loans grew by 9.25% in 2018. This indicates that the cost of education is on the rise in almost every corner of the world and India is not an exception.
So, aspiring students are facing difficulty in pursuing higher education due to the lack of financial strength. Hence, a major portion of the student population of India are opting for student loans to finance their education. Before availing such a loan, it is advised to know how to get a student loan.
How to avail a student loan?
In order to avail an education loan against property, you need to keep the following pointers in mind –
- Know how to use it first
Before availing an education loan, you need to know about the features of a loan against property and how to make the best of each.
- Substantial loan amount
Salaried parents willing to finance the education of their children can avail a loan amount ranging up to Rs.1 crore while self-employed parents can avail up to Rs.3.5 crore based on their loan eligibility. Hence, substantial loan amounts are considered among the important reasons why a loan against property is a better way to finance your child’s education.
- Flexible repayment tenor
Salaried parents can select a repayment tenor, on their mortgage loan, ranging from 2 years to 20 years whereas self-employed parents can opt for a tenor ranging up to 18 years. Financial experts usually advise taking the help of an online EMI calculator to determine the ideal tenor of your loan against property.
- Affordable interest rates
Since this loan is secured, borrowers are offered relatively more affordable interest rates compared to unsecured loans such as personal loans for education.
- No end-use restriction
A student loan against property does not possess any end-use restriction so that you can use the funds availed from this loan for various purposes such as travelling costs, living expenses, medical emergency, etc.
- Be aware of the eligibility criteria
In order to avail this loan, the borrower should be an eligible applicant first. Certain basic eligibility criteria are common between lenders which must be considered before applying for the loan –
- Salaried applicants, who are considering how to get a student loan, are required to be within the age bracket of 33 to 58 years while self-employed applicants outside the age limit of 25 to 70 years are not eligible.
- Salaried individuals should be employed in an MNC or a reputed public or private organisation. Self-employed individuals need to possess a regular source of income.
- All applicants are required to have a healthy CIBIL score to avail an education loan against property with no prior history of defaults.
- Keep all necessary documents nearby
Financial institutions and reputed HFCs sanction your student loan against property upon minimal documentation. HFCs like Bajaj Housing Finance Limited provide doorstep facility for the verification of your required documents such as KYC, bank account statements, ITR certificates, etc.
This HFC also brings forth pre-approved offers that help make the application process to avail education loans against property and other mortgage loans easy and simpler for borrowers. Check your pre-approved offer by providing your name and mobile number.
- Online application process
In order to avail this loan, you are not required to visit the nearest branch of your desired financial institution. You can opt for the simple online application process visiting the web portal of your financial institution at your convenience.
Hence, after learning how to get a student loan from this above discussion, you will be able to finance your education with a loan against property. Refer to leading lenders for the most beneficial terms and conditions. Meet your educational and career without letting finances come in the way.