The United States remains the top destination for students travelling offshore to pursue higher education. It hosts a vast majority of globally acclaimed colleges rated highly by students and faculty alike. Additionally, the USA also offers a diverse list of subjects, multicultural environment, and employment prospects, all contributing to its established reputation as the best country to pursue higher studies. At present, more than 7.5 Lakh Indian students study abroad. About 25% of these are enrolled as US universities. Indian students alone make up 17% of the total number of international students studying in the US.
STEM (Science, Technology, Engineering, and Mathematics) courses remain a favorable option for Indian studies studying in the US universities. While such courses open up new, innovative, and promising career options, the cost incurred in pursuing them keeps shooting north. This high-end expenditure involves the accommodation charges, lifestyle expenses, tuition fees of the universities, etc. Bearing such high costs takes a toll on the savings of individuals, and thus, there is a persistent need to know how to get an education loan in India.
Education loans from various reputed lending institutions cater to the expenses involved in studying abroad and come with multiple other features that make it imperative for aspirants. Read on to know why education loan in India is the safest option in case one wants to pursue higher education abroad :-
- High-Value Credit Amount
The cost of pursuing higher education at top universities in the United States can accumulate to a significant amount. Fortunately, one can easily overcome this financial burden with the help of a loan against property. Such credits come with a high loan amount of up to Rs. 1 Crore for salaried individuals and up to Rs. 3.5 Crore for self-employed eligible applicants.
- Convenient Repayment Tenure
Considering that loan against property is a long-term credit, deciding upon the tenure is crucial since it determines the EMI of a loan. Reputed financial institutions offer a range of repayment tenure options that range from 2 to 20 years. Following this, borrowers can calculate the EMI by providing a few education loan details like the tenure, loan amount, and the rate of interest. The best way to compute this is by using a loan against property EMI calculator.
- Additional benefits
One of the significant concerns that borrowers have is regarding repayment options considering the hefty credit amount. Thanks to leading NBFCs like Bajaj Finserv, this no longer posits a challenge considering the beneficial features that it offers on its Loan Against Property for Education like the Flexi Loan facility.
This unique feature lets borrowers utilise funds from a pre-sanctioned loan amount and pay interest only on the withdrawn amount rather than the entire principal. Borrowers can withdraw as and when they require. In case one pays back the withdrawn amount on the very same day, no additional interest is incurred. The borrower can optionally pay interest-only as EMIs and repay the principal at the end of the tenure.
They also bring you pre-approved offers on numerous financial products including on secured loans such as home loans, unsecured advances such as personal loans and business loans, etc. These offers make the application process to avail loans quicker and hassle-free. You can take a look at your pre-approved offer by providing a few essential details like contact number and name.
Such beneficial features make it essential for borrowers to know how to get a student loan and avail one to pursue higher studies abroad. He/she needs to qualify for a loan against property by meeting these simple eligibility criteria, viz, –
- 25 to 70 years (self-employed), and 33 to 58 years (salaried.)
- Indian citizen residing in any of the cities specified by a lender.
- Salaried employee working in an MNC, public or private sector; has a steady source of regular income.
Considering that lenders have the reassurance of the repayment due to the mortgaged property, they are comparatively less stringent about the eligibility criteria and required documents needed to avail a loan. However, it is essential to be aware of these requirements since it helps one have a better understanding of how a loan against property is processed.
Lenders take into account the convenience of the customers and hence the process of how to get an education loan in India is kept comparatively simple with minimal documentation requirements –
- PAN Card/ Aadhaar Card.
- Bank account statement of the previous 3 (salaried) or 6 (self-employed) months.
- IT returns.
- Copy of the documents for the property that will be mortgaged.
- Latest salary slip (salaried.)
Make sure to compare different education loan in India before you approach a lender who provides a competitive rate of interest and additional borrower-friendly features like hassle-free and quick disbursal of the loan amount, convenient balance transfer facility, and high-value top-ups.