Money Management

Now finance your higher education abroad with a Real Estate Loan

Pune: Education abroad continues to be an attractive proposition for both undergraduate and postgraduate students.

However, international programs are expensive, and depending on what country your child prefers, be it US, UK or Singapore, you will need a corpus of at least Rs 20-30 lakh for pay all expenses. Obviously, funding for higher education can be difficult, and in the absence of a scholarship, you may need to seek out a student loan to ensure that your child’s continued education is not compromised. One option you have is to take out an education property loan from Bajaj Housing Finance Limited, as this solution offers sufficient financing and accommodating repayment terms.

Read on to find out how a property loan from Bajaj Housing Finance Limited can finance your child’s education abroad:

What is a home loan?

A home loan is a form of real estate asset-backed credit that leverages the market value of the property you own to give you access to substantial financing. Typically, you can mortgage residential or commercial space that you own in order to get the secured mortgage loan. By offering it as collateral, an appraisal is undertaken and a loan is granted on the basis of a predetermined loan-to-value ratio (LTV). If your property is worth Rs 5 crore and the LTV ratio is 50 percent, for example, you can get financing of up to Rs 2.5 crore subject to eligibility under underwriting standards.

Why you should take out a loan against a property for education

A loan for property is an unrestricted loan and you can use the substantial amount as you see fit. Compared to other forms of financing, even a regular student loan, a home loan has certain characteristics that make it better suited for graduate education financing. Take a look at some of these features:

* Sufficient Funding: With a loan against property from Bajaj Housing Finance Limited, education costs, whether tuition, living expenses, or insurance premiums, can be easily covered as you have access to a large loan amount, up to Rs 3.5 crore subject to the company’s underwriting and guarantee policy. An education loan, on the other hand, does not necessarily allow access to such a high sum.

* Easy repayment options: When you take out a loan for property, Bajaj Housing Finance Limited offers you a flexible repayment term ranging from 2 to 18 years. You can choose a short term to limit your total interest payment or a long term to facilitate cash flow management. Also, taking into account that your child is likely to start working in a few years, you can comfortably plan for the repayment.

* Convenient Flexi Facilities: With Bajaj Housing Finance Limited’s Flexi Dropline feature, you can borrow and pay interest only on the loan amount used. Also helps you manage your finances efficiently, as you can choose to pay IMEs through the tenor and pay the principal at the end.

* Easy Eligibility Requirements: Unlike student loans which require outstanding academic performance and admission to a job-oriented course, you can get a loan against a property on simpler eligibility requirements. In general, your financial profile and the market value of your property carry the most weight.

How to Apply for an Education Property Loan

Once you meet the eligibility requirements, all you need to do is:

* Complete an online request form. Wait for an executive to contact you within 24 hours

* Get loan approval in 48 hours and submit the necessary documents to complete the process

Once your request is verified and approved, you receive a prompt disbursement. You can get quick access to financing by checking your pre-approved offer. By submitting the basic details, you get fast funding with a personalized offer.