As per the recent analysis of data from the UNESCO Institute of Statistics, there has been a robust average yearly growth of overseas Indian students by about 22% from 2000 to 2016. This growth was subjected to further boost over a subsequent couple of years owing to easy accessibility of the global education platform to the ever-expanding high to middle-income families. While India aims for an augmented GER of 50% by 2030, it is already considered one of the leading sources of international students.
However, arranging funds to finance the rising cost of higher studies along with additional charges of travelling, living, tuition, and college fees continue to take a toll on the personal savings of individuals. Thanks to leading NBFCs, such financial gaps can now be bridged if one has an in-depth idea about education loan. These financial aids come with a high loan amount that has no end-usage restriction and hence can be used to meet educational and financial requirements.
Despite easy accessibility of such advances, there are certain common issues of managing this financial responsibility that makes it challenging to avail, apply, or repay the advances. Check out these common issues while availing student education loan –
Difficulty In Applying For Education Loans
One of the significant problems faced by most students is regarding the application process to avail a loan against property for education. One needs to have an in-depth idea about how loan against property processed before applying for it.
While lenders offer a substantial loan amount and an attractive rate of interest to the eligible borrowers, they require this individual to follow a hassle-free application process –
Step 1: Register on the official website to avail an education loan. Provide the necessary personal, financial, and educational details and click on ‘submit’ to complete the application process.
Step 2: Respond to the representative from the NBFC approached who will get in touch with you within 24 hours of completion of the application procedure.
Step 3: Receive confirmation of the loan amount approval within 48 hours of completing the loan application procedure.
Step 4: Furnish necessary documents and hand them over to representatives from the reputed lender.
Following this, the sanctioned amount will be disbursed with 4 days of approval of the same.
Not Meeting Eligibility Criteria
Availing Loan Against Property for Education from reputed financial institutions like Bajaj Finserv requires borrowers to meet a few eligibility criteria mandatorily. Sans this, borrowers fail to enjoy the multiple borrower-friendly benefits offered by such student education loan.
So, qualify for a loan against property by meeting simple eligibility criteria such as –
- The borrower should be between 25 and 70 (self-employed) years, or between 33 and 58 (salaried) years of age.
- Indian resident residing in any of the lenders specified cities.
- Employed in an MNC, public or private sector, or should have a regular source of income.
Not Furnishing Required Documents
Not providing the required list of minimum documents may lead to a rejection of the application. Thus, remember to keep these handy while applying for a loan. Reputed lenders provide doorstep services to collect such documents and hence offer a convenient application process to avail a study loan. Basic documents include –
- KYC documents
- IT returns,
- Latest salary slip,
- Bank account statement for the past 3 (salaried), or 6 (self-employed) months.
- Copy of documents for the property to be mortgaged.
- Address proof.
Bajaj Finserv offers such Loans Against Properties for Education to individuals against minimum documentation and with multiple borrower-friendly features and benefits.
Bajaj Finserv also brings you pre-approved offer on numerous financial products including secured advances like home loans, and unsecured advances like personal loans, business credit, etc. These offers make the process of availing loans simpler and quicker.
Not Calculating The Loan Amount Eligible For
Compute the credit amount that you qualify for, before applying for an education loan. Calculating this is convenient considering that you need to first draw an idea about the current market worth of the property to be mortgaged. Following this, you can approach a lender of your choice and look into the LTV that they are willing to offer (this may go up to 75% of the market value of your assets.)
Look into your required loan amount and then settle upon a lender that caters to your financial requirement. Use education loan calculator for calculating the loan account.
Also, it is essential to compare the different rates of interest offered by various lenders as a part of knowing how to get a student loan. It helps determine your equated monthly instalment and helps in convenient repayment procedure.