There are many doubts among students related to education loan on property and one of them is whether they can get an education loan on a property that already has a loan on it.
A common myth about home loan property & education loan
There is a common misconception among students and parents that a home loan property cannot be pledged as collateral security for a collateral education loan.
This assumption that property would be rejected because it has a housing loan is a complete myth and a misleading assertion.
Due to the lack of information regarding the various clauses of education loans, students are not aware that they can get an education loan on a home loan property as well. As a result, students end up opting for unsecured education loans, which have higher interest rates.
Eligibility for education loan on home loan property
The standard education loan on home loan property eligibility criteria will be the same for a student applying for an education loan like their past academic records, university, the country they are going to, etc.
What lenders will also check is your and your co-applicant's CIBIL score and if you've been paying your home loan EMIs on time, it will reflect on your CIBIL report which will work in your favor.
Which bank is best to take a student loan against home loan property?
To answer the question, which banks are best? Government banks undeniably provide the best deal on education loans like lower interest rates, payment-free moratorium periods, etc. If your home loan is currently with a government bank like SBI, BOB, etc, it is better to apply for the education loan in the same bank.
Yes, Government banks may take longer to process your education loan, however, this is not the case when you apply via WeMakeScholars. We work closely with banks to ensure that your loan is approved in the shortest period possible.
Read more: https://www.wemakescholars.com/blog/overseas-education-loan-on-a-home-loan-property
0
Sign in to leave a comment.