What Are The Eligibility Criteria And Required Documents For Education Loan Against Property?

Owing to a hike in the inflation rate to 3.18% in June 2019, specific expenses such as education costs, business expenses, etc. have also increased. Thus, you can avail of a loan against property for education to beat such an increase in educational costs.

A loan against property for education provides you with a substantial amount within 48 hours of application that you can use to meet educational expenses like tuition fees, travel and stay cost, books expense, etc.

Several financial institutions and NBFCs provide such loans at an attractive interest rate and minimal charges. Nonetheless, to qualify, you will have to have to meet some eligibility criteria and provide specific required documents for education loan against property as discussed below. 

1. Eligibility criteria an applicant has to meet

For a self-employed applicant

• Age- The age bracket provided ranges between 25 and 70 years.

• Income- A regular source of income with a considerable amount will be required.

For a salaried applicant

• Age- Your age should be between 33 and 58 years.

• Income- You should have a considerable salary and must be employed under a public or private company or an MNC.

Besides, applicants have to be a resident of India residing in any of the cities where the lender operates and should have a CIBIL score of 750 and above. Debt consolidation and paying your dues on time are some ways you can maintain a good CIBIL score. Also, make sure you have a good credit history to enjoy a higher education loan amount and to avoid being blacklisted from financial lenders.

2. Required documents for education loan against property

The standard list of documents required to apply for a loan against property for education is as follows:

• KYC documents – These include your driving license, Voter ID, Aadhaar card, passport, PAN card, etc. 

• Address proof - These include electricity bill, water bill, gas bill, telephone bill, etc. 

• Account statements- Statements for the last 3 or 6 months will be required 

• Property documents- A copy of the papers of the property you wish to mortgage will be required. Such documents include buyer documents, other chain documents, sales agreements, etc.

In addition, salaried employees will have to provide their IT returns, recent salary slips, etc. as proof of income.

Also, before you avail a loan, you should gather some necessary information apart from the required documents for education loan against property and eligibility criteria, such as –

• Interest rate: Charged on your principal amount.

• Processing fee: Charged on the application of loan. 

• Statement charges: Charged for issuing loan statements. 

• Part-payment and foreclosure charges: Charge for pre-paying or foreclosing your loan.

• Penal charges: Also known as late payment fees and is charged for failing to pay your dues on time.

• EMI bounce charges: Charged in case of the insufficient amount in your debited account on the repayment due date.

Apart from the fees and charges on loan against property for education, you should also gather other education loan details such as the tenor, EMI amount, application process and other features.

However, the application process for such a loan is convenient and can be done online. To apply online, you can visit the official website of your lender and fill the application form by sharing some financial and personal details. A representative of your lender will get in contact with you once you submit the application form to collect the required documents. Once the papers reach your lender, your loan will be approved within 48 hours after some verification, and the amount will be disbursed accordingly.

You also get to enjoy pre-approved offers provided by specific financial institutions and NBFCs to make the application process fast and hassle-free. They provide pre-approved offers that are available different financial products including both secured loans like home loans and unsecured credits such as business loans and personal loans. You can check your pre-approved offer by providing minimal details like your name and phone number.

Must Read: Education Loan Against Property Calculator

In addition to the above-mentioned documents, you might have to provide some other documents if required by your lender. Also, your annual income will affect the eligibility to avail such loans, and a stable income will help in availing an education loan in India at a lower interest rate.