What should be the collateral value for education loan?

Collateral of suitable value is required for all education loans exceeding Rs. 7.5 Lakh. Tangible Assets – House, Apartment, Bungalow, Shop, Non-agricultural Land, Vehicle etc. Intangible Assets – Fixed Deposit, Life Insurance, Stocks etc.

Is collateral required for education loan abroad?

According to RBI, the maximum amount eligible for a study loan for courses in India is Rs. 10 lakhs while for studying abroad, it is Rs. 4 lakhs does not require collateral security. It is only when the loan exceeds a specified amount as set by the bank that collateral will be required as well as third-party guarantee.

What is collateral security in education loan?

An education loan with collateral is a loan where the applicant attaches security along with the loan application. This security can be movable (FDs, LIC Insurance, etc.) or immovable assets (non-agricultural land, house, etc.).

How much collateral is needed for education loan Quora?

Under the Credit Guarantee Fund Scheme for Education Loans, for studying in India loans up to INR 4.5 Lakhs are available without collateral and for loans up to 7.5 Lakhs you will not have to produce any collateral.

What are the documents required for collateral education loan?

You can provide Aadhaar card, PAN card, Voter ID, etc. as your proof of identity to process the Study Loan. Address proof may include Passport, Driving License, PAN card, Aadhaar card, etc. Provide copies of all the necessary documents of the property mortgaged.

Can I get student loan without collateral?

The security pledged against a loan is termed as collateral. However, you can get an education loan without pledging any security. But, if you take a loan of more than Rs 7.5 lakh, the bank may ask for collateral for the loan amount. The bank may also ask you to deposit margin money and seek third-party guarantee.

Can I take two education loans?

Well, the answer to the above question is – Yes, a student can be eligible for a second education loan. For this, they can either apply for a second education loan from the bank they already have taken their first loan from or they can apply to a different bank.