1. Immovable property like a house, flat, non-agricultural land and
2. Liquid security like Fixed deposits, Insurance policy(Term Insurance), and govt bonds.
1. Immovable property like a house, flat, non-agricultural land and 2. Liquid security like Fixed deposits, Insurance policy(Term Insurance), and govt bonds.
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Before getting into the property required for an education loan, a brief about a secured loan and an unsecured loan.
1. Secured loan- A secured loan is where you pledge collateral to a bank to take a loan against it.
2. Unsecured loan- An unsecured loan is a loan that doesn't require any type of property. Instead of relying on applicants' collateral as security, lenders approve unsecured loans based on an applicant's financial co-applicant.
Accepted collaterals by lenders for a secured education loan.
It is always preferred to go with public banks if you have a property to pledge. Property required for education loan could be-
1. Immovable property like a house, flat, non-agricultural land and
2. Liquid security like Fixed deposits, Insurance policy(Term Insurance), and govt bonds.
You can also get an Education loan on property of your relative or friend who is willing to pledge his/her property for your education loan.
Preferred property by lenders
Though all the properties are acceptable, some properties are preferred over the others by lenders considering the future prospect of the property
1. Urban properties over rural properties
2. Residential properties over commercial properties
3. Build up properties over empty lands.
Types of properties that are not accepted
1. Agricultural lands are not accepted by lenders because of SARFAESI ACT, 2002.
2. Gram panchayat properties are not usually acceptable. Property has to be under Municipal Corporation.
3. Cantonment area property is not acceptable. It includes- temporary quarters for troops and a permanent military station in India.
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