abroad is a dream for many students, however, the costs involved can
become the dream breaker. Education
loan for abroad studies, that uses
property as collateral can be an effective way to fund studies
abroad. The loan can be using bungalows, flats, agricultural lands,
plots, stores, and shops, and other documented properties, as
are some of the many benefits of education
loan for abroad studies against
1. The longer tenure for repayment: Most financial institutions in India give 20 years to repay this education loan. Long tenure reduces the burden on the borrower significantly. However, most unsecured loans provide only with a maximum tenure of10 years to repay the loan, which leads to an increase in the EMI amount.
2. 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.
3. 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.
4. 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.