A child's education is the main priority of every parent they do not want to compromise with this. lots of parents are failed to do this because of financial debts. the parents can make it successful by taking a loan against property or education loan today I will discuss which one is best for you.
Loan Against Property (LAP)
- The loan amount depends on the property value PNB Housing Finance loan against property will offer doorstep service self-employed, salaried, a non-salaried person can avail of this very easily and multiple payment options are available.
- If borrowers default does not pay the EMI timely the lender can sell the property and recover the loan amount.
- the tenure of a LAP loan is longer than an education loan. it offers a 20 years tenure that is good enough to pay any kind of EMI.
Educational Loans
- The chance of loan approval is low because the loan amount is high and the parent's income is low.
- The interest rate of the education loan is higher than the loan against property.
- Provisions under section 80E provide for the interest component to be deducted from the parents’ IT return as the RBI and Government of India is incentivizing higher education.
- the loan amount directly credited into the college account you can not use for the other purpose.
