Does education loan require property?
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Does education loan require property?
As most students have no previous credit history, the parent or guardian has to co-sign for an education loan as a guarantor. Moreover, education loans also require key lender approved collateral such as property documents, fixed deposits, etc.
Can land be used as collateral for education loan?
You can definitely use agricultural land as collateral for availing an education loan. If the value of the asset is at par with or exceeds the amount of the loan, then you can use it as collateral.
Can you take education loan against property?
Yes, you can co-apply for an education loan on property.
Is education loan a liquid asset?
The only condition is that the FD must be with the bank from which you are going to take the education loan from. The holder of the FD will receive interest rate on it, same as before. LIC can be taken as a liquid asset provided that its a maturing policy with a fixed maturity date.
Where can I get collateral education loan?
Collateral Education Loan is usually provided by the Government banks like SBI, Bank of Baroda etc. NBFCs can be chosen over public banks only if the collateral is of lower value when compared to the actual loan amount required. How much Collateral Education Loan can be obtained?
What are the different types of collateral for a loan?
There are two types of collateral: (a) Immovable property which includes Flat, house, lands with clear demarcation or commercial properties (b) Liquid securities which includes Fixed Deposits, insurance policy, Government bonds etc Few banks also accept third party collateral which includes property belonging to your friends, relative or anyone.
Can I take an education loan with an existing FD?
It is also important to note that the education loan can be taken on the existing FD or you can even make a new FD for this purpose and can use it as collateral. The only condition is that the FD must be with the bank from which you are going to take the education loan from.
What are the different types of education loans?
An education loan covers the cost of tuition and other associated costs of the program. Education loans can broadly be divided into two categories – secured or education loan with collateral and unsecured or education loan without collateral. Most public and private sector banks as well as NBFCs give education loans to students.