How Can I Avail an Educational Loan To Study in Canada?

According to a report released by Statista, about 92% of adults in Canada had a minimum of high school educational qualification in the year 2018. Further, the spending on education in high schools and undergraduate courses in Canada saw an 81% increase in 2016 since 2000, reaching a figure of 60.49 billion Canadian dollars. Subsequently, the report mentions the unemployment rate in Canada stood at 4.3% among the individuals who have pursued university education.

Considering the educational growth prospects and availability of renowned institutes, more Indian students are now opting to study in Canada. 

Nonetheless, educational expenditures aren’t the sole expense that one has to bear. Studying abroad also includes the cost of accommodation, cost of living, and other expenses.

Individuals need to arrange funds for the same, and one of the preferable options is by availing education loan against property for Canada. Individuals who own a valued property can mortgage it as collateral to receive the desired loan amount. The loan amount to be granted is a determined percentage of the property value.

How to avail an education loan on property?

Individuals that have a deficit of funds to pursue higher education should follow the pointers mentioned below to avail an education loan on property for MBA abroad successfully.

1.) Check the eligibility criteria

Individuals can qualify for a loan against property by meeting the eligibility criteria mentioned below.

a. Loan applicants must be a resident of India.

b. For self-employed individuals, age should be between 25 and 70 years. Also, they must have a regular source of income. 

c. Salaried individuals employed in an MNC, private, or public firm should be in the age range of 33 to 58 years.

2.) Gather the documents required

a. Employees need to produce Officially Valid Documents (OVDs) for KYC such as Aadhaar card, PAN card, Driving license, Passport, etc. 

b. They must provide a copy of the property documents, which is to be mortgaged.

c. Individuals need to submit their bank account statements in support of their loan application.

d. A salaried employee should submit the account statement for the previous 3 months and for self-employed individuals, it is 6 months. Salaried individuals must also provide income tax returns.

3.) Estimate property value 

Individuals must research and estimate the market value of the property to understand the loan amount they can be approved for. Financial companies usually approve up to 70% of the property value as the loan amount; in case of default, the property can be used in liquidated for the lost funds.

4.) Choose the right tenor 

It is important to determine the ideal tenor for a loan against property before applying to plan the loan repayment better. Borrowers should choose a tenor based on their repayment capability. 

Choosing a long tenor will help reduce the EMIs. A shorter tenor can help in repaying the loan faster and can reduce the overall cost of the loan.

5.) Loan application

After choosing a preferred financial institution that offers competitive study loan on property for Canada interest rate, one should follow the below steps for application –

a. Fill up the application form online by providing the essential details. 

b. After the financial company’s representatives contact the borrower, he/she will have to provide documents as mentioned above in support of the application.

Loan against property is a secured form of credit, and financial companies offer substantial funds to customers depending upon the value of a pledged property. The funds so availed can be utilised to meet various expenses needed for education in Canada. 

Further, housing finance companies like Bajaj Housing Finance Limited makes the loan application procedure simpler for customers with their pre-approved offers. Customers can check their pre-approved offers instantly by inputting their name and contact number. 

By keeping these pointers in consideration and following up, one can avail education loan against property for Canada. The amount so availed can be used for payment of tuition fees, hostel charges, stationeries, study materials, etc. With a mortgage loan, students will easily avail the funds and make sure to pursue their higher study in Canada.