Overseas Education Loan on Home

The majority of Indian students opt for education loans to fund their overseas education. There are majorly two kinds of overseas education loan i.e., Secured Overseas Education Loan and Unsecured Overseas Education Loan. Secured Loans are those loans that are availed against the pledged security whereas Unsecured Loans are those that don’t require any security.

For Secured Overseas Education Loans, students can pledge both movable and immovable assets as security. Movable assets include government bonds, mutual funds, gold, whereas immovable assets include residential houses, flats, shops, land (in city limits) etc.

In this article, we are going to discuss the important factors attached to Secured Education Laon availed on immovable assets i.e., a residential house.

Eligibility criteria for availing Secured Education Loan

A Secured Overseas Education Loan can be availed for all levels of courses for higher education. However, there is an academic and financial criterion that a student should meet in order to avail a secured loan. Let us know about that.

• An applicant should be an Indian national.
• A student must have secured admission to the university.
• A student should hold a decent academic background with fewer backlogs and no academic gap.
• Average annual income of the co-applicant should be minimum of 2 lakhs.
• The co-applicant should have a good CIBIL score, preferably 650+ with strong credit history.
• There is no age criteria to avail secured education loan.

Availing a Secured Education Loan on a home property has some benefits to it. Let us know what those are.

Benefits of getting a Secured Education Loan:

• Students can avail up to 1.5 Cr as a loan amount at the lowest interest rates of 8% onwards.
• Co-applicants become eligible for tax deduction under section 80E of the Income Tax Act, 1961.
• The repayment tenure is of 15 years providing flexible repayment terms.
• If the student is a girl child, she is applicable to get the concession of 0.50%.
• No compulsion of serving simple interest during the moratorium period
• No pre-payment and pre-closure charges if the applicant is repaying the loan amount in less than the stipulated time-period.
• Flexible criteria for the co-applicants financial profile.
• Students can get the loan amount up to 80-90% of the property valuation.

List of expenses covered in a Secured Education Loan:

• Tuition fees, examination fees, library fees and lab charges.
• Expenses of on-campus and off-campus accommodation including mess charges.
• Fare of the Air Ticket.
• Overseas Health Insurance of the applicant.
• Purchase amount of the study materials, laptop, equipments required if any.
• Fees of the study tours and project work.

These were the important factors for securing an Overseas Education Loan on a residential property. Do a thorough research and choose the best bank for overseas education loans. If you have any queries related to overseas education loan options, do reach out to us.