The increasing cost of education can make it challenging for financially weak families to provide the best education to their children. One preferred financing option for child education is a loan against property as it offers the following benefits:

1. Fund Against Residential and Commercial Property: One can get the best value loans against their commercial and residential property and fulfill your child’s education requirements.

2. High Loan Amount: A property loan offers a high loan to value ratio that differs by property type. It can go as high as Rs. 5 crores with Non-banking financial companies (NBFCs), providing a loan amount up to 70% of the property value. The loan amount will depend on the property’s type, condition, and location.

3. Easy Processing: Lenders can easily approve a property loan application as a property loan is a secured loan, and they need not worry about recovering the loan amount if the borrower defaults.

4. Lower Interest Rates: A loan against property is affordable as the interest rate is lower than an unsecured loan. A loan against property is a secured loan. Loan against property private finance with renowned NBFCs can be availed of at an interest rate of as low as 9% per annum. 

5. Flexible Tenure: A loan against property is a flexible tenure that can be extended to 20 years. A loan applicant can choose a longer tenure to reduce the EMI. Also, it is your choice to reduce the interest outgo with the option of short term tenure.

Thus, if you are a property owner, you can easily avail a loan against property to finance your child’s education.

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