Loan against the property to finance the child’s education:

The loan against the property can help avail some liquid cash in hand so as to satisfy our needs and requirements. The borrower can utilize the funds to even finance the child’s education in India as well as abroad. Especially for foreign education, the liability for the fee payment is very huge ,and is sometimes difficult to repay the full amount to the educational institutes. The borrower is charged interest rates of around 10-15% on loan being taken ,which the borrower has to make a timely installment of payment of loans, while failing which the borrower can be heavily penalized. The documents of the property should be submitted to the lender so as to avail the liquid cash in hand. The borrower can avail of loans up-to 60-70% of the total property value. For example: If a borrower mortgages the property documents to the lender as well, and suppose if the property valuation is Rs.50 lakhs, then the borrower can expect a credit of Rs.30 lakh or Rs.35 lakh equivalent to 60-70% of the total property value.

When the loan against property opted for ,the borrower needs to submit the necessary documents to the lender with clear titles as well as government id proofs, income statement, employment proof, business proof in case of an entrepreneur.etc. The borrower should not have co-owned property against which the borrower cannot take a loan against the property, also there should not be discrepancies in case of the land records of the property owned. Also it should not be a disputed property or any kind of illegal encroachments or a dilapidated building on such properties the loans cannot be extended. The borrower should utilize the funds appropriately and should also inform the lender purpose of the loan is taken for. Also, the CIBIL score record is verified by the lender before approval of the loan, as in case of very low cibil score, the application may be possibly rejected, while in case of average score, the application is accepted and the loan is processed. Also, in case of the loan against the property, there should not be any current loan been going on for the existing property.

Features & benefits:

Affordable loan of high value:

Get a loan against the property the for higher education of high value up to Rs.1 crore if you are a salaried individual. Avail of a loan up to a maximum of Rs.3.5 crores if you are self-employed.

Hassle-free Disbursal of loan:

Getting an educational loan is a hassle-free disbursal procedure. Fulfill the eligibility criteria and furnish the documents required to get the loan approval.

Long and flexible tenure of payment:

The borrower can repay the loan as per convenience. The moratorium received can be in the range of 2-20 years for the salaried employees. For self employed, it is 18 years.

Minimum documentation:

The educational loan can be completed with minimal documentation. The doorstep facility is also provided to borrowers so as to process the loan quickly.

Easy and quick balance transfer facility:

An Easy balance transfer can be initiated for the balance transfer of the loan is possible. It is easy to obtain a loan for educational purposes in an easy and simple way so that the borrower can perceive their educational dream.

The documents required for loan against property for education financing is as follows:

  • The borrower needs to fill up the application form for applying for the loan ,which is being provided by the financial institution.
  • The government id proofs like pan card, aadhar card, driving license or passport is required to be submitted.
  • Source of employment proof like offer letter, salary credit proof of bank statement, pay-slips of the organization.etc
  • In the case of the self-employed individual ,the borrower should submit shop act registration, partnership deed agreement, bank statement stating turnover etc.
  • The income proof is just needed while opting for a loan against the property so as to know the exact source of income from which the borrower is going to repay the installment and take away the mortgaged documents. Bank also needs to ensure and verify that the lender should not do misuse the funds allocated as well as the borrower should not be a fraudulent person or may be involved in any of the suspicious or criminal activities.
  • The borrower needs to submit a the documents with a clear title so as to obtain the loans, and the property should not jointly or co-owned.
  • The borrower needs to submit a copy of the admission confirmation so as to obtain finance while mortgaging the property.

Miscellaneous other things to consider while applying for the loan against property for educational financing:

  • In spite of the easy loan process, the borrower should ensure the repayment chances as in other cases failing to re-pay the loan the borrower may lose his property and maybe at a big loss.
  • The borrower should also ensure that the terms & conditions mentioned are exactly the same as verbally mentioned and the interest rates should not be highly charged.
  • The borrower should also try to negotiate ,the interest with the lenders as in case of the consideration is being done even on less than 1% or less than 0.50% interest rates the borrower can save a huge sum on the interest re-payment.


Hence to fulfill the dreams of a high quality education, for the aspirants, it is always advisable to opt for a loan against the property in case of availability of the extra property. The liquid cash in hand can help an individual opt for a dream course

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