Education loans are unsecured advances that do not require pledging any collateral. If you are considering how to apply for education loan, you can approach any leading financial institution or NBFC. Here the credit amount can range from Rs. 20 Lakh to Rs. 25 Lakh.
Now, if the borrower’s credit requirement is much higher, he/she can opt for a loan against property. This credit facility requires you to pledge any of your assets as collateral. Depending on the LTV (loan to value) ratio, a loan against property for education can fetch you a handsome sum of up to Rs. 3.5 Crore.
Now, that you know what is education loan is and how it differs from a loan against property, take a look at why the latter proves advantageous.
Benefits of availing loan against property for education
-> If you are still wondering whether a loan against property or an education loan is better for you, take a look at this comparison –
You can avail up to Rs. 3.5 Crore for a loan against property that is significantly higher than what an education loan can offer at max.
-> Repayment tenors of LAPs can range up to 18-20 years which is longer as compared to education loans which range between 5-7 years. Longer tenors lead to lower monthly EMIs, making repayment affordable for the borrower.
-> The interest rates offered in LAP are comparatively lower than an education loan as the former are secured loans.
Now that you know how a loan against property is beneficial, apply for one to secure your child’s career.