Choose Loan Against Property for your Child’s Higher Education


In everyone’s life, there are some events for which they need to start planning and saving early. These include retirement, meeting their child’s higher education and marriage expenses, etc. And, regardless of your quantum of savings, a shortfall can happen anytime, and you may require to take additional financial assistance. 

In the case of your child’s higher education, the final expenses always differ from your initial expectation. But, education loans are not always helpful in this evolving educational system because of the conditions attached to avail it. For such a candidate, a Loan against Property (LAP) is the best option to move forward with because of the fewer conditions attached to it and its ease of availability.

Loan Against Property for Higher Education 

LAP is the most suitable option for meeting the higher education expenses of your child. The loan will help you in covering all the basic (tuition fees, administration charges) and additional expenses which are not possible with an education loan.

Under LAP, you get a higher loan amount, up to 90% of the value of the property in the case of self-occupied property, and 55% loan to value ratio in case the property is rented. It has a host of other benefits, such as:

Loan Against Property Interest Rate

The loan against property interest rate is an affordable option for meeting your child’s higher educational expenses. Interest rates are less when compared to personal l

Quick Approval

Since the loans issued under the LAP option are secured in nature, the lenders carry less risk of default, which, in turn, allows speedy approval. Further, under this loan category, the lenders are more interested in property documents than the status of a university or college. It is thus easier to obtain when compared to an education loan.

Longer Repayment Tenure

The repayment tenure of the loan issued under LAP option is higher in order to match the high loan amount. The borrower can repay the loan in tenures ranging from 2-20-years. Tenure can be chosen based on financial situation and goals.

Flexibility of Use

As opposed to an education loan, where the amount is directly credited to the institution’s account, the loans issued under LAP is directly credited to your savings account, thus ensuring flexibility of use.

Loan Against Property Eligibility

Compared to any other type of loans, the LAP has only the following criteria, which the borrower need to fulfil, in order to be eligible.

● Should be an Indian resident.

● Should be salaried individual or self-employed.

● Should have legal ownership of the property against which loan is sought

Documents Required for Loan Against Property

Make sure you have the following documents ready for a successful approval to get the money you need for your child’s education:

● Copy of all legal documents of the property.

● PAN and Aadhar Card.

● Bank Statement (last 3 months).

● Salary Slip (last 3 months).

● Filled in Application Form.


The loan against property for your child’s higher education is the best alternative to education loan. Not only your child will experience a reduced financial burden in the initial stage of his/her professional career, but will also enable you to provide full financial assistance required for the course.

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