How To Apply For Loan Against Property For Education?

 How To Apply For Loan Against Property For Education?

What is a Loan Against Property? – It is a loan which is sanctioned keeping an asset as a mortgage with the lender. The asset can either be land, a house or any other commercial entity. The asset remains as collateral with the lender until the amount pertaining to the Loan Against Property is paid. For instance, something as similar as a Gold Loan – you keep something at the mortgage, fulfil your needs and get it back after paying the specific amount.

With the pandemic having placed the people in a position of scepticism, look in for the three options listed below to avail for a reliable Education Loan Against Property. 

Research beforehand

If you research, you will find plenty of banking institutions and NBFCs providing you with this credit. Opting for a Non-Banking Financial Institution, ‘Bajaj Finserv,’ can do the trick. It offers funds up to 75% of the property value that you mortgage. As far as the Rates of Interest are concerned, the Loan Against Property provides lower rates, in comparison to the rest. This makes your EMI affordable and an add-on benefit for a longer repayment tenure. 


  • Provides a higher loan value, up to INR 1 Crore, if you come under the category of a Salaried individual by profession. If you are Self-employed, you can avail up to INR 3.5 Crore.
  • Your disbursement will be hassle-free
  • Flexible tenure
  • Minimal documentation
  • Convenient modes of bank transfer

Eligibility requirements for Education Loan Against Property,

  1. Must be the resident of India
  2. Minimum age requirements – 25 and above
  3. Regular pay

Once you have fulfilled the basic requirements, the next step for you would be easy to clear. For the documentation adhering to the Education Loan Against Property,

Submit pertinent documents

  • KYC documents
  • Salary slips of the past 3 months
  • Bank statements
  • Copy of Property papers

Take all the necessary documents and keep it secure in a zip file/ folder to submit during the application for faster approval. You will also have to make sure that your property matches the loan value. For instance, if your property is worth INR 2 Crore, you must take a loan up to INR 1 Crore to stay clear. This is because the loan permits you to take up 75% of the property value, as mentioned earlier.

Note: Your property must be of a higher marginal value.

The application process for an Education Loan Against Property can be done in two ways – an offline application and an online approach. With both the ways being appropriate, the choice is yours. For an online application, you must fill in and submit your documents, after which the bank representative will verify your documents and give you the go-ahead. The specified amount will be transferred to your bank account, post-approval. If you are applying offline, you will have to send an SMS to the lender, after which a representative will get in touch with you to take the process forward.

Note: Be sure to fill in details like your name, address and number appropriately in the online application process. Kindly refrain from filling in irrelevant details, intentionally/ unintentionally can lead to risks and misunderstandings later. Get trustworthy debt consolidation loan.

After you get your loan sanctioned, you will have up to 20 years in hand to leisurely repay the loan. Bajaj Finserv has an additional feature – ‘Hybrid Flexi Loan’ to borrow and prepayment.

Apart from Bajaj Finserv, there are other banks providing the facility of Education Loans, as it is the need of the hour. Some of these banks, like Zolvedo not need loan collateral and also provide the full spectrum of banking services online including international credit cards and easy study loan in USA which can be extremely beneficial to students that wish to study abroad.

Education Loan Schemes Rates of Interest Amount Processing Fee
PNB 7.30% onwards Up to INR 15 Lakhs 1%
SBI 7.97% – 10.05% p.a. INR 20 Lakh and above INR 10, 000 + GST
Bank of Baroda 8.25% – 10.00% Up to INR 4 Lakh and above 1%
Axis Bank 13.70% – 15.20% Up to INR 7.5 Lakh INR 15, 000 + GST
HDFC Contact HDFC Up to April 1.5% + GST
Kotak Mahindra Bank Up to 16% If applying in India – Up to INR 10 Lakh

If applying abroad – Up to INR 20 Lakh

Contact Kotak
ICICI Bank Contact ICICI If applying in India – Up to INR 50 Lakh

If applying abroad – Up to INR 1 Crore

Contact ICICI
Federal Bank 10.05% onwards If applying in India – Up to INR 10 Lakh

If applying abroad – Up to INR 20 Lakh

Contact the bank
Bank of India 9.10% onwards If applying in India – Up to INR 10 Lakh

If applying abroad – Up to INR 20 Lakh

INR 50, 000 for courses in India + additional fees for courses abroad

Now that you have a clear picture choose amongst the best for your child’s education and repay for your mortgaged property on time, with Bajaj Finserv.

Paul Petersen