Can we get an education loan on commercial property?

The property can be owned land, a house, or any other commercial premises. The loan provided under LAP is decided based on the market value of the property. The property remains as collateral with the bank or financial institute until the entire loan against property amount is repaid.

Which collateral is accepted 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 security needed for education loan?

Collateral Required for Education Loan Guidelines show that loan taken up to 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.

Can a mortgaged property be used as collateral for education loan?

However, there is a common misconception among aspirants that they cannot pledge a housing loan property as collateral security for a secured education loan. But this is not the case. Such an asset can be pledged as collateral security for availing a secured overseas education loan.

Can FD be a collateral for education loan?

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.

Is collateral required for education loan SBI?

Immovable Property: An immovable property is one of the most frequently pledged categories of assets as collateral against an abroad education loan. Assets such as Fixed Deposits, government bonds, life insurance policies from government-approved lenders, etc. are accepted by government banks like the SBI, BoB, etc.

Can I take education loan against fixed deposit?

Loans can be granted for the duration of the Fixed Deposit tenure. For those targeting higher value of Educational Loan can opt for that against a Fixed Deposit. Higher the investment in Fixed Deposit, higher the loan amount granted by banks. The bank charges an almost negligible processing fee for the loan applicants.

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.

What kind of property can be used as collateral for education loans?

It is common knowledge that immovable property is a widely accepted category of collateral security in government banks, all over India. However, borrowers cannot just pledge any property for their education loans. The banks have set certain mandates regarding what types of immovable properties are acceptable.

What are the forms of collateral for government banks in India?

In India, all government banks accept two major forms of collateral security; immovable property and liquid security.

How much student loan can I get without collateral in India?

Public banks – Public banks like SBI, BOB, etc according to their policies can only provide up to 7.5 lakhs student loan without collateral irrespective of the course and country. But for some top-tier institutes in India, you can avail up to 40 lakhs of unsecured education loans from SBI.

How to take a loan with immovable property as collateral?

If you want to take the loan with your immovable property as collateral, in that case, the bank’s representative will verify your property and prepare a report on whether it can be mortgaged or not. Also, the bank’s representative will evaluate your property. Based on this report, the loan amount will be approved.