Finance Your Child's Education with Loan Against Property | Kotak Mahindra Bank - Home Loan Stories

28 SEPTEMBER, 2021

It is said that an investment in knowledge pays the best interest. Therefore, a good education is considered one of the top ingredients to live a successful life. However, often people face problems in admitting their children to the best institutes. Be it foreign universities or premier institutions in the country, the cost of education is exorbitantly high today. Many parents find it hard to arrange funds to send their children abroad for higher education. However, there is a solution.

A loan against property can help you finance your child’s future education without exhausting all your lifelong savings.

What Is a Loan Against Property?

A loan against property is a secured loan where you can mortgage your property to borrow money against its value. To take a loan against property, you can pledge your commercial residential or industrial property. When you apply for a loan against property, the lender evaluates the property’s value and accordingly sanctions the loan amount to you. Until you repay the loan, the property is kept as collateral with the lender.

What Is the Eligibility to Get a Loan Against Property?

The eligibility criteria for a loan against property is as mentioned below:

  For Self-employed & Non-professional applicants For Salaried applicants
Age At least 21 years while applying and not more than 65 years at the time of maturity Between 18 and 60 years
Income A minimum annual income of Rs 1.80 lakhs and above A minimum monthly income of  Rs 40,000
ther The organisation/business should be operational for the last three years and should show consistent profits for the last two years. Should be a graduate if employed with a private limited company or partnership firm.

What are the Benefits of Availing a Loan Against Property?

  • High-value loans

Whether your child wishes to pursue his masters in premier institutes of the country or abroad, you can easily finance his higher education with a loan against property. With this loan offering, you can get a high loan value amounting to 50%-75% of your property value. With us, you can get a loan value from Rs 10 lakh to Rs 5 crore.

  • Long repayment tenure

With a loan against property, you benefit from an easy repayment schedule and long repayment tenure. With a maximum tenure of 15 years, you can conveniently repay the loan amount as per your financial comfort. You can use a loan against property EMI calculator to determine your affordability.

  • Low-interest rates

You help reduce the lender’s risk by furnishing your property as collateral while availing a loan against property. This helps them offer you low-interest rates compared to other unsecured loans. With low interest rates and flexible repayment options, a loan against property can be an affordable loan option to fund your child’s needs.

Your child deserves the best, and lack of funds should not hinder his/her chances of excelling in life. With easy repayment options and high-value funds, a loan against property can help you leverage the equity of your property and send them to the best educational institutes. After all, knowledge is the best gift you can give to your child. Click on the loan section on the wehsite and apply for a loan against property today.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.