Now Finance Your Higher Studies Abroad With a Loan Against Property
A loan to fund your child’s higher education abroad isn’t actually a loan but rather a long-term investment. Here, loan against property can prove to be a great option to finance your child’s overseas educational expenses. This article focuses on helping you know about the significant advantages of taking a mortgage loan for education.
Finance Your Child’s Higher Studies Abroad with a Loan against Property
Over the years, overseas education has gained a lot of popularity among Indian students as it offers them access to the best universities and educational facilities. However, international education programmes are far more expensive in contrast to their domestic counterparts. One needs at least INR 25-30 lakhs to fund educational expenses in countries like the United States, the United Kingdom, Australia, and so on. In most cases, parents are in no position to finance such expensive courses. But fortunately, there is still a way to fulfil your child’s dream of studying overseas; you can take a mortgage loan to fund your child’s educational necessities. Here, in this article, you will know everything about the mortgage loan and how it can be a great option to finance the education of your child.
Here is Why You Should Opt for a Mortgage Loan
Under a mortgage loan, also known as a loan against property,you need to mortgage your property as security. The loan amount depends on the current valuation of your mortgaged property. Here are some of the advantages that make mortgage loan an ideal option to fund your child’s studies abroad:
- Amount of the Loan: As mentioned earlier, overseas education, especially higher studies, is costlier in contrast to its domestic counterpart. Here, a mortgage loan can offer you the required funding and cover each of the basic expenses such as insurance, tuition fees, living expenses, etc., which is otherwise not possible under an education loan.
- Flexibility in Repayment: As you have borrowed a huge amount, you will need some time to pay the borrowed amount. Hence, to aid you, most lenders provide a flexible repayment period. You can choose a repayment period according to your convenience.
- Low-Interest Rate: Due to the secure nature of this loan, the mortgage loan interest rate lies on the lower side. You have to pay around 12%-15% interest rate, which is way lesser than other loan options.
- Easy to Get: You might be familiar with the strict terms and conditions of an education loan if you have ever applied for this loan type. However, the same is not the case with a mortgage loan. Besides, due to its secured nature, financial institutions have the liberty to sanction the loan amount, without stressing a lot about the NPA aspect.
Procedure to Apply for the Loan
To apply for a loan against property, you need to study the eligibility criteria on the official website of the lender. If you meet the requirements, you have to fill out an application form and wait for their representative to contact you. Ideally, the loan is approved within 48 hours of applying for it.
Flexible repayment option, low-interest rate and easy approval are some of the primary reasons behind the growing popularity of a mortgage loan in the country. However, as you are putting your property at stake, you should apply for this form of loan only if you can repay the borrowed amount before the stipulated period.