How to Finance your Overseas Education Effectively with Mortgage Loan

An international degree attracts every student as an overseas education promises a lucrative job and a vertical career growth within a very short time. As such, many students wish to pursue their higher education abroad. But what about the funds required for such an education? International courses are quite expensive. Do you have the sufficient funds to go or send your child for a foreign education?

Overseas Child Education:


Affording an international education is not easy for many and so there are loans available in the market. A loan against property is one such option which provides you with sufficient funds for an overseas education. The loan is good because –
It offers a substantial amount of money as a loan
The repayment period is up to 15 years making it easy to repay the loan
The loan is offered against the value of the property and is a secured loan. As such, the interest rate on the loan is low.
The loan has a multi-purpose use and can be used for any and every expense incurred in availing a foreign education
Top-up loans are also allowed on mortgage loans if you want additional funds for completing the course.

Overseas Education with Mortgage Loan


Given the benefits of a loan against property, it is a good source of finance for an international education. If you are looking to avail this loan, here’s what you should know about it –
The eligibility criteria
A mortgage loan is offered to individuals who fulfill the below-mentioned eligibility requirements –
The age should be 18 to 70 years
If you are salaried, your net monthly income should be a minimum of INR 40, 000. If you are self-employed, an annual income of INR 3 lakhs is required
Salaried individuals should have work experience of 3 years. In the case of self-employed individuals, the business should be in existence for the last 5 years at least.
The credit score should be at least 650
The documents required

You would have to submit all property related documents like the registered sale deed, lease deed, past sale deed chain of ownership, house tax return of the current years, approved plan of the building, etc. Moreover, the property against which the loan is sought should be approved by the lender. Other than property documents, your own documents would be needed like your identity proof, age proof, address proof, income proof, etc.

The loan available
The loan amount depends on the value of the property which is being mortgaged. Usually, up to 85% of the property’s value (as assessed by the lender) is offered a loan. This percentage is called the Loan To Value (LTV) ratio and it depends on the type of property mortgaged (commercial, residential or industrial).
Interest rate

The interest rate on a mortgage loan ranges from 8.75% to 15.15% across different lenders.

So, if you wish to send your child abroad for an overseas education on a subject of your or her choice and you own a property, the best deal would be to mortgage the property and avail a loan against the property for funding the education.