According to reports published in 2018, there has been a 5.4% rise in the number of Indian origin students going to the United States which constitutes almost one third of the students going to foreign countries. Currently, the number stands at approximately 1,90,000. Interestingly, Indian students make up around 18% of foreign students in America.
How to Finance Foreign Studies?
Students aspiring to go abroad must be aware of the innumerable costs and expenditures which come along with pursuing academics abroad. Consequently, it is vital to understand what is education loan and how to utilize such credits for higher education. Catering to all expenses that might come up while studying in a foreign university, lenders offer customized secured as well as unsecured lending options to aspirants.
Typically, secured loan options including mortgage loans offer more benefits to the borrower with high loan amounts offered at lower rates of interest.
Underneath, basic requirements and steps of financing higher education as well as things to look for in a loan against property for education are discussed in detail.
What do Financial Institutions Look For?
While opting for an education loan to finance courses from top colleges in the world, financial institutions implement their own set of requirements before they approve a loan application. Along with residency in India, the basic eligibility criteria are split into two different sections based on income source of the borrower.
Salaried Individuals have to meet the following eligibility requirement.
- Age must be between 33 years and 55 years.
- The borrower must be employed in a government/ public/ private organisation.
Self-employed individuals can qualify for a loan against property by meeting these simple eligibility criteria mentioned underneath.
- Age of the borrower must be between 25 years and 70 years.
- There must be a regular source of income.
Once eligible, parents along with students must look into the list of documents needed to apply for a loan against property for education. They must arrange the following and understand what is an education loan and its eligibility, which is an essential requirement for financial institutions before approving any loan application.
Let’s take a look at the necessary documentation criteria.
- Bank account statement (3 months and 6 months respectively for salaried and self-employed borrowers.)
- PAN/Aadhaar Card.
- Address proof.
- Copy of all documents of the property that is to be mortgaged.
Additionally, salaried applicants must also provide their salary slips along with their Income Tax returns. Self-employed applicants may also be required to provide profit and loss statements as proof of income.
How to Apply for Higher Education Financing Via Education Loan?
Usually, most financial institutions including companies like Bajaj Finserv employ a simple application process to help ease the task for prospective applicants. They also bring you pre-approved offers that make availing education loans against property quick and easy.
These offers are available on numerous financial products like education loans, home loans, business loans, personal loans, etc. You can check your pre-approved offer by providing your name and phone number.
Once the loan product is approved by the NBFC, the amount is usually disbursed within 4 working days. This fast application followed by prompt disbursal allows students to meet all monetary needs in case there is a time sensitive situation to join classes.
Considerations while Financing Higher Studies
In order to avail such a financial product and enjoy all its benefits, there are certain loan against property aspects a borrower should know and consider beforehand.
- High loan amount going up to Rs. 1 Crore and Rs. 3.5 Crore for salaried and self-employed
- Convenient repayment tenors ranging between 2 and 20 years for salaried individuals, while it goes up to 18 years for self-employed customers.
- Additional benefits like balance transfer which can come with additional features of top-up loan amounts.
Aspirants hoping to go for higher studies in top universities in USA or elsewhere in the world should look into the above requirements as well as features to successfully finance all their academic expenses.