Overseas Education Loan On a Home Loan Property
Throughout the Loanflix web-series, we have stressed on the various benefits of borrowing secured overseas education loans from prominent government banks. One of the doubts which was constantly asked by our viewers was whether they could pledge their property which is already under a loan, as collateral security for an overseas education loan. It is indeed possible for candidates to pledge such assets as collateral security for an overseas education loan. The below video is the third episode in the Inshorts series and it will clear off all your notions about pledging a property under home/housing loan as collateral security for an overseas education loan.
A Common Myth About Home Loan Property & Overseas Education Loan
When it comes to overseas education loans, secured education loans from prominent government banks bring a lot of benefits to the table for candidates. Although candidates are well aware of these benefits, many of them hesitate to do so due to a lot of misconceptions. One of the misconceptions is that a housing loan property cannot be pledged as collateral security for abroad education loan from government banks. This is a myth.
If you have been instructed otherwise, do keep in mind that
every candidate who has secured admission to universities abroad and is looking to fund his/her higher education with the help of an overseas education loan can pledge their assets as collateral even though they are under a housing loan. The vice versa is also possible.
That is, even if your property was not under any loan at the time of pledging it as collateral security for an overseas loan and you wish to borrow a housing loan on the same property later on, this is allowed.
Due to lack of awareness about the various clauses of a typical abroad education loan scheme, a lot of such students often tend to choose the option of funding their abroad studies with the help of non-collateral education loans which are costly and offer fewer benefits than secured overseas education loans offered by government banks in India.
One of the biggest woes faced by students when they apply for overseas education loans is the fact that even the bank officials misguide them regarding this topic. The financial team of WeMakeScholars is well aware of this and guides students in the right direction when they are approached for help and assistance. To know specific details about the process of pledging your housing loan property as collateral security for an overseas education loan, do get in touch with the financial team of WeMakeScholars today.
Things to Remember While Pledging a Home Loan Property As Collateral Security For Overseas Education Loan
Although it is possible to pledge a home loan property as collateral security against an overseas education loan, there are certain points which all candidates need to keep in mind before beginning their overseas education loan process.
- Market value of the property being pledged
- The pending home loan amount to be paid on the property
The above two factors greatly affect the final overseas education loan amount granted by government banks. Hence, it is essential to take both of them into account before pledging your housing loan property as collateral security with the respective bank. Do get in touch with the financial team of WeMakeScholars to understand how these factors affect your education loan amount,
Another point to be taken into consideration is the pending loan amount on your property. If 75% to 80% of the loan amount has not been paid at the time of applying for an overseas education loan, getting it approved from the bank is going to be a slightly more complicated process.
Now, if your respective bank has stopped you from applying for an overseas education loan stating that housing loan property cannot be pledged, you may get in touch with the financial team of WeMakeScholars and they will help you with the same.
How To Apply For An Education Loan Through WeMakeScholars?
Applying for an overseas education loan through WeMakeScholars will only require you to request a callback. Once this is done, our team will take over the entire loan process on your behalf and guide you through it till your overseas education loan is sanctioned successfully. Do stay tuned for the next article in this series which will throw some light on the kind of individuals that can be named as co-applicants for abroad education loans.
Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it is free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others