Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

Fund Your Child’s Higher Education With A Loan Against Property!

Published on Aug 9, 2019Updated on Apr 9, 2025

Fund Your Child’s Higher Education With A Loan Against Property!

The news of your child’s acceptance to a prestigious university for higher studies is a moment of great pride and joy. This is not just your child's pathway to career success but also an equally important life goal for you as a parent. However, as the moment sinks in, the daunting need to arrange large funds at a short notice, dawns upon you. In such a situation, your real-estate assets could become the safest, quickest and most convenient solution for realising your child's dream.

A Loan Against Property can help you unlock the value of your property while you retain its possession. Get started with identifying the right financial partner who understands your needs and offers a personalised solution. An experienced relationship manager can help you plan the loan and recommend a mortgage with customised features and a wide range of benefits. So, make the most of the financial power of your property, and let your child take the next big step in life.

The basics of mortgage - what you need to know about a property loan:

  • Principal -This is the total amount that the lender will grant with certainty. In most cases, 50-60% of the property’s market value is granted as principal. Depending on the applicant’s profile and a good credit history, it could stretch up to 70%.
  • Interest Rate -Interest rate refers to the cost of your principal. This simply determines the extra funds you would need to repay along with the principal. Loan against property interest rates could vary depending upon various factors. However, with a clean financial profile and history, you can negotiate and get attractive interest rates.
  • Mortgage tenure - This refers to the total period you get to repay your loan - the principal and the interest. In case of a loan against property, you could be granted a repayment timeline of up to 15 years.
  • Equated Monthly Instalments (EMI) -EMI is a convenient method that enables you to repay your mortgage in monthly installments instead of a yearly lump sum amount. EMIs are calculated by dividing the sum of the principal and interest by the loan tenure.

Documentation required for property loan

In addition to your application form, the following are the documents for Loan Against Property

  • Recent photograph
  • Proof of identity, address and age
  • Bank statements
  • Form 16, Income Tax returns and pay-slips in case of salaried applicants
  • Proof of business existence, company’s financials and duly-certified income tax returns (business and individual) in case of self-employed applicants
  • Copy of your property's Title Documents and Approved Plan

After your documents and application are verified, your eligibility will be assessed primarily based on your repayment capacity. This is evaluated based on multiple factors such as your income and that of your spouse (if you are married), your age, qualification, and more.

If you are considering a Loan Against Property for higher education, you should explore financial institutions that have custom products for such needs, besides other key aspects such as having a network of branches all around the country. Selecting a reputed institution is important as they will be in possession of your persona data and property records and documents.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

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