If you have a dream of studying abroad, take the first step towards it as LAP (loan against property) is here for your rescue. It will help you pay all your expenses, including living costs.
Education is an important part of our lives. It paves a way the way for our success and survival in society. When it comes to studying abroad, we require financial aid. As fancy and intriguing as it sounds to get educated offshore, the cost also increases as compared to studying locally. Worry not! As the real estate value is rising, your property can assure you a load for your dream of yours or your children studying abroad.
Many bank and Nonbank financial companies offer loans against property. Now you can fulfill your goal of getting educated abroad based on the value of your property. Let us know more about load against property and how it can benefit in 10 ways-
Table of Contents
- What is a loan against property?
- Some of the aspects that make a loan against property (LAP) a good and beneficial choice for getting an education abroad are
What is a loan against property?
Load against property is a secured loan that is given official permission and approval that we receive after mortgaging our assets like land, house, or any commercial premises. The beneficiary should own the property.
A Loan Against Property (LAP) loan allows individuals to borrow money using their owned property as collateral. The loan amount depends on the value of the property and the borrower’s ability to repay the loan. This loan can be used for personal or business purposes like funding education, expanding a business, or paying off high-interest debts. However, if the borrower fails to repay the loan, the lender can sell the property to recover the outstanding amount.
The asset that your mortgage will be kept with the lender until you repay the whole amount that is due. LAP can help you live your dreams. Many benefits to it make it an optimum choice for anyone.
Some of the aspects that make a loan against property (LAP) a good and beneficial choice for getting an education abroad are
1. Lower interest rates
Loan against property (LAP) for education typically comes with lower interest rates compared to personal loans and education loans. Interest rate is the fee charged by the bank or the money lender that sanctioned the loan. The charges can be fixed or variable.
2. Higher loan amount
You can get a higher loan amount through a loan against property as the loan amount is based on the value of the property that you pledge as collateral. Remember that the property’s valuation plays a key role in deciding the loan amount.
3. Longer repayment tenure
The repayment tenure for a loan against property is usually longer, which gives you more time to repay the loan. This helps you have peace of mind and keeps you away from the strain on the finances.
4. Flexibility of usage
The loan amount can be used for a variety of purposes, including tuition fees, living expenses, travel expenses, and other miscellaneous expenses. It is not like you can only pay the money to pay the fees of your college or university. This flexibility gives you financial stability when you are living abroad.
5. No restrictions on the course or university
Unlike some education loans that may have restrictions on the course or university, a loan against property allows you to study at any institution of your choice. You can choose any course you like according to your liking without the restriction of the lender.
6. Quick approval process
The loan against property approval process is generally faster than that of other types of loans, so you can get the funds you need quickly. These keep you away from the hassle and tension of exceeding the deadline for payment.
7. No need for a co-applicant
when you apply for a loan, the lender or the bank will likely demand a co-applicant for the assurance. In most cases, you do not need a co-applicant to apply for a loan against property, which means you can apply for the loan on your own.
8. Lower documentation requirements
The documentation required for a loan against property is usually less than that of other types of loans. This decreases the paperwork and reduces the stress of collecting them.
9. Tax benefits
You may be eligible for tax benefits on the interest paid on the property against a loan for educational purposes. It is mentioned under section 80E of the Income Tax Act of India.
10. Higher chances of approval
If you have a property to pledge as collateral, your chances of loan approval are generally higher as it reduces the risk for the lender. Think no more if you have land, a house, or a shop to lend to the bank for the loan.
These were some of the advantages of loans against property. If you have a dream of studying abroad, take the first step towards it as LAP (loan against property) is here for your rescue. It will help you pay all your expenses, including living costs.