Read on to know how a Loan Against Property from Bajaj Housing Finance Limited can finance your child’s education abroad:
What is a Loan Against Property?
A Loan Against Property is a form of credit backed by an immovable asset that leverages the market value of the property you own to give you access to substantial finance. Typically, you can mortgage a residential or a commercial space you own in order to obtain the secured mortgage loan. On offering it as security, valuation is undertaken, and a loan is granted on the basis of a predetermined loan-to-value (LTV) ratio. If your property is worth Rs.5 crore and the LTV ratio is 50%, for instance, you can get funding of up to Rs.2.5 crore subject to eligibility as per underwriting norms
Why you should take a loan against property for education
A Loan Against Property is a loan that comes with no restrictions, and you can use the substantial sum as you deem fit. When compared to other forms of funding, even a regular education loan, a loan against property has certain features that make it best suited to finance higher studies. Take a look at what some of these features are:
- Ample financing: With a Loan Against Property from Bajaj Housing Finance Limited, education costs, be it tuition fees, living expenses or insurance premiums, can be easily met as you get access to a large loan amount, up to Rs.3.5 crore subject to underwriting and collateral policy of company. An education loan, on the other hand, may not necessarily offer access to this high a sum.
- Easy repayment options: When you take a Loan Against Property, Bajaj Housing Finance Limited offers you a flexible repayment tenor ranging from 2 to 18 years. You could opt for a short tenor to limit your total interest payment or a long one to ease cash flow management. Further, taking into consideration that your child is likely to start working within a few years, you can plan for repayment comfortably.
- Convenient Flexi facilities: With Bajaj Housing Finance Limited’s Flexi Dropline feature, you can borrow and pay interest only on the amount of the loan that is used. Also helps you manage your finances efficiently as you can opt to pay EMIs through the tenor and pay the principal at the end.
- Easy eligibility terms: Unlike education loans that demand outstanding academic performance and admission to a job-oriented course, you can get a loan against property on simpler eligibility terms. Typically, your financial profile and your property’s market worth carry the most weight.
How to apply for a Loan Against Property for education
Once you meet the eligibility terms all you need to do is:
- Fill out an online application form. Wait for an executive to contact you in 24 hours
- Get approved for a loan in 48 hours and submit the necessary documents to complete the process
Once your application is verified and approved, you receive a quick disbursal. That said, you can avail quick access to financing further when you check your pre-approved offer. On submitting basic details, you get speedy financing through a customised deal.
About Bajaj Housing Finance Limited
Bajaj Housing Finance Limited (BHFL) is a 100% subsidiary of Bajaj Finance Limited – one of the most diversified NBFCs in the country with 19 product lines across consumer, commercial and SME finance catering to more than 38 million customers across the country. Headquartered in Pune, Bajaj Housing Finance Limited offers finance to individuals as well as corporate entities for purchase, construction and renovation of homes or commercial spaces. It also provides loan against property for business or personal needs as well as offers working capital for business expansion purposes. It also offers finance to builders and developers engaged in the construction of homes. The company enjoys the highest long-term credit rating of AAA (Stable) by CRISIL and IND AAA (Stable) by India Ratings and highest short-term credit rating of CRISIL A1+ by CRISIL and IND A1+ by India Ratings.
To know more: https://www.bajajhousingfinance.in/