A good education is one that paves the way to success and despite the adverse impact on the finances of many households due to the pandemic, the cost of education has only risen across the world. Students wishing to further their education in India are having to look after the provision of funds themself. For such students, an education loan is the most preferred mode of funding education after scholarship.
Since there are a lot of lenders with their education loan schemes for students, it is important to gather complete information related to education loans to be able to make an informed and wise decision. The financial terms can be a bit confusing for students as they are least aware of them. Understanding them is essential for you to choose an education loan that best suits your financial needs.
You must be aware that there are two types of education loans that you can choose from i.e. education loan with security and education loan without security. But many of you may not know what all collateral is accepted as security for a collateral education loan. So in this article, we'll clear the fog around the collateral education loan, collaterals that are accepted and that are not accepted by a lender in detail.
Before getting into the education loan with collateral, a brief about a collateral loan and non-collateral loan.
If you have any property to pledge then it is always preferred to go with public banks. There are two kinds of collaterals that banks accept for a secured education loan -
You can also get an education loan with security of your relative or friend who is willing to mortgage his/her property for your education loan.
Though most types of properties are acceptable, lenders prefer
Getting an education Loan against collateral is easy if you have the documents mentioned below-
Students in India can avail up to 1.5 crores by pledging the collateral which depends on the collateral value and the total loan requirement of the student.
For liquid security
The interest rate on a secured education loan usually ranges between 8% to 9% in Government banks.
The biggest advantage of an education loan with collateral from government banks is that you can get an education loan for almost any course. Private banks on the other hand are very particular as to which courses to fund.
Government banks basically offer an education loan without collateral of up to 7.5 lakhs for your education in India, and for an amount above 7.5 lakhs, one is required to pledge the collateral. Higher education in India usually costs around 10 lakhs, an unsecured education loan from a government bank has the same benefits as mentioned above. But getting a non-collateral education loan from government banks is arduous and may take up a lot of your time if you chose to go on your own.
If you are looking for a non-collateral education loan of up to 7.5 lakhs to fund your education, then we recommend you to connect with our team at Vidyaloans. Our processing officer will assist you with the entire education loan process.
About the organization: VidyaLoans is an organization which helps Indian students in India to secure a non-collateral loan from Government banks up to 7.5 Lakhs. We have a dedicated team of professionals who assist students with queries and guide them throughout the loan process. Our Team at Vidyaloans is committed to sanction the best loan option suiting the applicant's profile and needs, in a stipulated time frame.