Here are some of the many benefits of education loan for abroad studies against property:
- The longer tenor for repayment: Most financial institutions in India give 20 years to repay this education loan. Long tenor reduces the burden on the borrower significantly. However, most unsecured loans provide only with a maximum tenor of10 years to repay the loan, which leads to an increase in the EMI amount.
- No approvals required by UGC or AICTE: Unsecured loans demand the approval of the borrower from the University Grants Commission or by the All-India Council of Technical Education. This is, however, not a requirement in the case of a secured loan like loan against property.
- No restrictions on end-use: It is not compulsory to mention the reason for applying for the loan. You can cover additional expenses if any using the same loan.
- Disbursal of the loan amount: In an unsecured loan is unlikely that the lender will disburse the loan all at once. In a secured loan the lender disburses the loan all at a single time. It becomes the choice of the borrower to avail the loan at once or with intervals.