Child’s Education – most important need of any parents. Everyone wants to teach their child’s in superior school and colleges. But then , there are the fees, professional classes, books and lot of other things for which we(Parents) need a loan with lowest interest rates. We need to finance our child’s education with loan against property.
or we may say “LAP loan”. Today, in this article you will get to know everything about LAP loan. What is lap loan, how to apply for lap loan, documentation required for lap loan, eligibility, benefits and so on…!
What is a Loan against Property?
A loan against property can be availed by keeping any property you own as collateral to meet your expenses. The amount of the loan that you can avail depends on the market value of the property and the cost it amounts to. It is a popular and convenient way of meeting your expenses.
There are loads of expenses and responsibilities that we all have to fulfil. Savings are undoubtedly indispensable and help us get through most of our difficult times, but huge expenses like education or wedding cannot be covered by savings alone.
Additional finances are required and especially when the costs are significantly increasing in the present era. One great way to meet expenses is to take a Loan against Property.
Financing your Child’s Education with Loan Against Property
To meet this expense of your child’s education, all you have to do is keep a property you own as collateral to the bank.
For an unoccupied or self-occupied property, you can avail a loan of 50% to 90% of the value of your property.
The ratio decreases if the property is rented out, and you can avail up to 40% to 55%. You can also use a loan against property calculator to keep track and calculate the amount that you need to repay.
Eligibility Criteria for Loan against Property
Being a salaried or self-employed individual is essential to be eligible for availing a loan against property. Other factors such as your age, income and credit history also play a vital role in your eligibility. There are numerous documents required for a loan application. These are:
- One identity proof
- One address proof
- One age proof
- Last six months bank statement
- Previous three years Income Tax Returns
- All the documents of the property being kept as a collateral
- Salary slips if you are a salaried individual
Loan against Property Process
- You can avail a loan against property online by just going to ‘Apply Now’ and filling in an application form.
- Verify your mobile number with an OTP sent to you.
- Fill in all the personal, employment and bank details.
- Keep scanned copies of documents ready and upload them.
- Submit the application, and you will be notified whether you are eligible for the loan or not.
- If you are eligible, you will be put in touch with a customer representative who will guide you further.
Benefits of Loan against Property for child’s education
High Loan Amount:
With increasing inflation and rising education costs, it has become vital to take a loan with a higher amount to meet the expenses. Loan against property lets you do the same, making it convenient for you to bear the cost.
Loan against property offers a longer tenure for the repayment of the loan, making it comfortable for you to pay the amount without defaulting. The tenure can be as long as 20 years which relieves you of the financial burden.
Loan against property is cost-effective, and the interest rate is lower compared to education loans. This helps you manage your finances and enables you to save money.
Unlike the education loans transferred to the educational institutes, you get the amount for the loan against property directly in your account. Hence, you can use it for multiple other purposes, as required according to the situation.
Since the tenure of the repayment of the loan is more prolonged, this results in paying low EMIs, which is beneficial and eases the financial burden off you. You can repay the loan comfortably and slowly with small amounts.
Hence, this guide gives you a few best ways through which you can achieve the best of higher education without any financial burden. We can say that a loan against property is a great option to fund your child’s education. The basic requirement is to fulfill the LAP eligibility criteria and apply for the loan.
If you have any question related to Lap loan, feel free to ask along with your email id and we will be happy to respond you back.