Education Loan Against Property: A Detailed Overview

    Updated on: 23 Oct 2023 5 min read

     

    Worried about arranging funds for your education? With a plethora of study loan options available in the market, you must not worry much! If you have a property to put as security, you can get an education loan at a lower interest rate for a longer loan tenure. A loan that can be taken by pledging property as a security is called a loan against property.

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    What is the repayment method of education loan against property?

    Applicants should repay their LAP with EMIs as per the pre-specified loan tenure. Students can take benefit of facilities like part-payment, balance transfer, or foreclosure to make their study loan repayment easier and ably manage it. Part-payment lessens EMIs or loan tenure. Whereas, balance transfer enables borrowers to switch banks to get a lower interest rate. Foreclosure helps in the loan repayment in full before the tenure completes. Therefore, it saves on the interest payment.

     Read More About - How To Plan Your Education Loan Repayment?

    Can I get an education loan on property if I already have an active home loan?

    Banks offer loans based solely on the applicant's repayment capacity. Lenders will evaluate the repayment capability, and if after giving the home loans EMIs, the applicant still can pay the new loan installments, then the lender will sanction the education loan. But, there can be a situation where the applicant's home loan EMIs are so high that any further debt will disturb his/her monthly budget completely. In such a case, the lender will refuse to approve the education loan considering the applicant won't be able to repay it.

    If you are also looking for an education loan to study abroad, check your loan eligibility and get free help in the entire loan process. 



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Written by Gurbani Kaur Suri

A keen lover of reading and loves to explore new things. A strong believer of spirituality and goodness.


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Reviewed by Aman Jain

Aman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh students in his 8-year-long journey.


Specializes in:
Education loan , Study Abroad Admissions


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GyanDhan is India's first education financing marketplace.



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