With every passing year, the cost of quality education has been steadily rising. A report by the National Sample Survey Office (NSSO) found that from 2008 to 2014, the cost of education increased by 175 per cent and the cost of technical education increased by 96 per cent. The numbers only increase with time. Most likely, your income cannot keep pace with the rising education fees. Hence, the need for loan.
While choosing the best loan for sponsoring higher studies, borrowers often rely on education loans. But, a loan against property is much cheaper and convenient than most other loans. Read this article to know how a loan against property can be the best loan if you wish to spend on the noble cause of education.
Why is a Loan Against Property Better Than an Education Loan?
An education loan is the most applied loan for sponsoring education. However, a wise borrower always goes for a loan against property as it offers several benefits that an education loan does not. Firstly, loan against property interest rate is generally much lower than the education loan. Secondly, the repayment tenure is higher. Thirdly, there is no maximum cap on the loan amount. Hence, if you do not want money to create an obstacle in the way of education, going for a loan against property would be a prudent choice.
What Benefits Can a Loan Against Property Offer?
A loan against property is a no-frills loan that is easy to avail and easier to repay. The following are a few advantages of a loan against property.
- Ease of Spending
While most other loans specify the areas where you can spend the money, with a loan against property, you are the decider. Nobody will ever ask how you plan to spend the amount. Hence, you may use the funds to pay tuition fees, admission fees, uniform, hostel, transportation, or any other expense that demands urgent attention.
- Low Interest Rates
As the loan against property is secured, lenders offer attractive interest rates that bring down the EMIs substantially. If you opt for a longer tenure, choosing the fixed rate of interest would suit you better. If, however, you are willing to let the market decide your loan interest rates, you may opt for the floating rate, which, at present, starts from 9.80%.
- More Time to Repay
The repayment tenure of a loan against property can be up to 20 years. Higher tenure means lower EMIs. Choose a repayment tenure that would suit you the best. By clearing your debt earlier, you may become eligible to apply for a fresh loan.
- Simple Documentation
To be eligible to apply for a loan against property, you must be an Indian citizen, and your age should be between 21 and 65. You need to submit simple documents like age proof, identity and address proof, income statement, income tax returns, bank account statement, and property papers.
- Fast Loan Approval
The loan against property approval is often quicker than many other loans. As soon as you apply online, you may expect a call from the lender who will guide you through the rest of the approval process.
With so many benefits offered by a lender on applying for a loan against property, it’s a no-brainer that this is the best loan for sponsoring higher studies.