Know The Essential Documents Required For An Education Loan On Property
The education sector of India continues to be a priority for the government. Multiple endeavours continue to bring in a holistic development to this industry and the population. While FDI in this sector has been kept at 100% for the industry, the relevant authorities are working on drafting a New Education Policy that aims to change the dynamics of the education sector. Following such endeavours, an increasing number of students are better able to pursue their education goals at the elite colleges and universities across the globe.
One of the chief hurdles in pursuing such courses abroad is the cumulative cost of education and other miscellaneous fees associated. Considering the rising Gross Enrolment Ratio of students in higher study courses, lenders offer students loans or loan against property for students. For such advances, the documents required for education loan are kept to a bare minimum, and so are the required eligibility criteria.
The easy accessibility of such advances along with its hassle-free application process and a high-value credit amount makes such loans the best go-to option for students seeking to pursue courses abroad. Taking into account such hosts of benefits that these loans bring, various lenders now provide education loans.
However, remember to compare the credits available in the market and opt one that caters to your educational & financial requirements. Remember to look into your monthly financial obligations and opt for a lender who provides you with affordable EMIs by computing the instalments with a loan against property EMI calculator.
All that you need to do is meet a few eligibility criteria and furnish the nominal documents required for student loan –
Documents Required During Application For A Loan
Availing secured advances require borrowers to mortgage a property that will later be analysed by the lender in question. A financial institution scrutinises the asset and looks into its net market worth before determining the LTV (Loan to Value). In cases of high-value properties, LTV may go up to 75% of the collateral’s market price.
Considering that lenders have an option to liquidate the asset in case of default, they are comparatively lenient about the list of documents needed to apply for a loan against property –
- Personal Documents
The documents required for education loan for abroad studies includes a list of personal documents like –
- KYC documents
- IT returns
- Address proof
- Bank account statement of the past 3 (salaried) to 6 (self-employed) months
- Mortgage Documents
While lenders are less stringent about the personal documents required to avail loan against property, there are some mandatory requirements in the case of mortgage documents required for education loan –
- Chain of Title or Sale Deed
- Occupancy Certificate
- Agreement to Sell (ATS)
- No Objection Certificate from a relevant authority
- Share Certificate
These property certificates certify that this asset is
- clear of any dues,
- is marketable,
- has been constructed in compliance with the plans approved by the concerned authorities,
- is ready to move-in
- has the agreement value of the property to be mortgaged
Furnishing these few documents enables individual avail loans of higher credit amount that come with zero end-use restrictions. Thus, this sanctioned amount can be used to fund diverse expenses involved in pursuing a higher education course abroad.
However, leading financial institutions are also particular about the creditworthiness of a prospective borrower and hence require them to meet a few essential eligibility criteria. Sans this, individuals need to qualify for a loan against property by meeting some simple eligibility criteria.
Eligibility Criteria Required To Avail Loans
Approaching leading lenders like Bajaj Finserv to avail advances like education loan in india that provides borrowers with access to multiple borrower-friendly features. Borrowers can enjoy such beneficial facilities by meeting a few eligibility criteria like –
- He/she should be a resident of India
- Should reside in any of the lender-specified cities
- Be between 25 to 70 (self-employed), or 33 to 58 (salaried) years of age
- Should be an employee working in an MNC, or private or public sector, or have a regular source of income
Such reputed lenders also bring you pre-approved offers on various financial aids that includes both secured advances like home loans, and unsecured advances like personal loans, business credits, etc. These offers streamline the application process to avail financial aids and make the process convenient. You can take a look at your pre-approved offer by providing a few essential details like your name and contact number.
Meeting such nominal eligibility criteria furnishing the required documents can help borrowers avail up to Rs. 1 Crore (salaried), or Rs 3.5 Crore (self-employed). This fund so acquired can then be used to meet expenses like paying college fees, tuition charges, living expenses, etc.