Why is a Loan Against Property Better than an Education Loan?
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.