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What is tangible collateral in education loan?
When you apply for an education loan, most Indian banks require Collateral security. It means any property, movable or immovable, which is offered for securing a loan.
Is land accepted 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.
Does SBI provide non collateral?
The State Bank of India is one of the country’s leading nationalized lenders. SBI generally offers upto 7.5 lakhs for SBI education loan without collateral. SBI also grants subsidies on interest rates for female candidates as well as a 0.5\% discount on Rinn Raksha Credit Life Insurance policyholders.
Can I use commercial property as collateral for SBI abroad education loan?
It is recommended that you pledge commercial property as collateral only if you do not possess a residential property. Empty lands are often less preferred by most SBI bank branches. Properties which have a building/house on them are often accepted by SBI for abroad education loans.
What is SBI education loan?
This SBI education loan is granted especially to students who have secured admission for professional degrees like Masters, PhD & M.Phil courses in universities and colleges abroad. Generally, students who need collateral education loans of above INR 20 Lakhs only are granted an SBI education loan under this scheme.
What is an education loan with collateral?
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.). Most public banks in India require collateral security to sanction a loan application over INR 7.5 Lakhs.
Which assets are accepted as collateral security by SBI?
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. as collateral security. Third-Party’s Assets: This provision is only applicable to government banks, especially SBI and Bank of Baroda.