Education Loan Against Property: Let Your Child Dream

• Under an education loan against property, you can access funds for your child’s education by keeping your property as security.
• You can offer a residential or commercial property as collateral for an education loan against property.
• An education loan against property is a secured borrowing. Thus, its interest rate is lower than the interest on unsecured borrowings.

The cost of education is skyrocketing just like other expenses. However, this shouldn’t deprive your child of quality education at a premium institute. A strong education lays the foundation for a promising future, and you can strategically plan your finances to support your child’s career goals.Consider an education loan against property to arrange the necessary funds without impacting your other financial goals. Read on as we explain this option in detail.

Under a loan against property, you can access funds for your child’s education by keeping your property as security. The lender evaluates the property's value and other factors before sanctioning the education loan against the property.

The lender approves your loan application if you fulfil the applicable eligibility criteria. Here are a few things that you should know:

• Property: You can offer residential or commercial property as collateral for an education loan against property.
• Loan Amount: Normally, you can expect to get a loan of up to 75% of the property’s market value.
• Age: The minimum age for applying is 21 years. The maximum age at loan maturity is 60 years for salaried and 70 years for self-employed.
• Income: There should be proof of consistent and adequate income as per the lender’s guidelines.
• Credit Score: A good credit history with a clean repayment record is crucial.

Note: It is advisable to understand your lender's eligibility criteria before applying education loan against property.

Education loan against property offers several benefits that make it a worthy option for funding your child’s education. Here are some of the many advantages it offers:

Access to Substantial Funds

As mentioned above, you can expect to get a loan of up to 75% of the property’s market value. This gives you access to a larger pool of funds to comfortably care for your child’s education.

Lower Interest Rates

With a long repayment tenure, you can repay your education loan against property without straining your monthly budget. This helps you plan your finances better while meeting your other financial commitments.

Long Repayment Tenure

With a loan tenure of up to 15 years, you can repay your education loan against property without straining your monthly budget. This helps you plan your finances better while meeting your other financial commitments. Also Read: 4 Methods to Repay Your Loan Against Property Quickly

Apart from motivating your child to pursue bigger dreams, accelerate his/her educational journey with an education loan against property. A strategic approach like this empowers not only your child to pursue ambitious aspirations but also you to safeguard other financial goals.Talk to an Aditya Birla Capital representative for an education loan against property and take the first step toward investing in your child’s future.