As a parent, nothing can be more pleasurable than to see your child coming out of their educational institution with flying colours. As they grow, you feel a sense of accomplishment. However, education is a costly affair, or at least so when your child has a premier institution or a future-ready course in their mind. Hence, people apply for loans to sponsor their child’s education.
When people think about a loan for sponsoring education, they almost always think about education loans. However, there is another option in the market, one which offers you a higher amount at a much lower rate of interest – LAP loan or loan against property.
Why is a Loan Against Property a Better Choice?
Whether it is a low LAP loan interest rate, long tenure, flexible terms, lower processing fee, higher loan amount, easy eligibility, minimal documentation, or a simple application process, an education loan against property offers you several benefits which no other loan can probably offer.
Here are the reasons how an education loan against property can fulfil your child’s educational dreams without burning a hole in your wallet.
One Fund For All Needs
The cost of higher education may include tuitions fees, hostel fees, travel expenses, examination fees, books, food, and whatnot. It may also include the money required for recreation, which is an essential part of student life. While an education loan gives you limited money for these purposes, a loan against property can offer you up to 60% of your property’s market value that you can spend on anything directly or indirectly related to education. Hence, you can also use the loan against property funds to buy a high-end computer or any other gadget required for fulfilling educational needs.
An education loan against property has an uncomplicated eligibility criterion, which makes it easy for anyone to avail it. The following are the four things you have to keep in mind to get a LAP loan at a low rate of interest.
- The borrower’s age should be 21, at the time of loan application.
- The borrower’s maximum age can be 65, at the time of loan maturity.
- The borrower needs to be a citizen of India.
- The borrower’s monthly income must be above the threshold limit set by the lender.
Long Repayment Tenure
While an education loan typically comes with a repayment term of 15 years, a loan against property offers you a 20-years’ repayment period. An extended loan term also brings down the EMIs, thereby making it more convenient to repay. Alternatively, you can opt for a short loan term to reduce the LAP loan interest rate.
Simple Application Process and Fast Loan Approval
The application process of a loan against property is seamless. You can visit the lender’s website, fill in the loan and personal details, upload documents, and apply for the loan within ten minutes. The lender will carry out the mandatory property inspection and approve the loan amount. You will receive the loan amount in your account within a day or two of loan approval.
An education loan against property acts as a life-saver when you are struggling with funds for higher education. However, it is wise to browse various lenders and choose the one who is offering better terms in addition to lower LAP loan interest rate.