Pursuing higher education in foreign universities can prove substantially expensive, especially in countries such as the UK, the USA, Australia, among others. The average monthly expense of studying in the UK or USA can range between Rs. 70,000 – Rs. 1 Lakh. These expenditures constitute living expenses, college fees, and other ancillary costs.
In that case, how to get a student loan becomes an essential question. Individuals can avail advances such as loan against property for education.
Loan against property can be used to comprehensively cover all expenses related to studying abroad, while an education loan only covers the college fees.
How to choose between a loan against property and education loan?
The following factors can aid you to choose whether loan against property or education loan is better for you–
- Preferred University – The first step is to consider the universities that your son or daughter prefers. Once that is decided, research on their tuition and hostel fees along with respective local living expenses to decide the amount you will need as loan.
- Eligibility Criteria – The eligibility criteria for education loan are often stringent and require various documents to complete the process of loan application. On the other hand, credits like a loan against property are secured advances which can be availed easily against less stringent eligibility criteria.
- Repayment – Before applying for either, consult your repayment capability beforehand. You need to consider your financial standing and prospects to decide whether you can repay without incurring a financial burden. As loans against property come with longer tenors, it will allow financial leeway while covering the expenses of studying in some of the best engineering, medical, or biotechnology colleges across the world.
Once you have considered these factors, you can apply for a student loan as you deem fit to facilitate your child’s education.