Education and Career Forum

Hi Everyone,
I am Munindra Kumar. I have a 2 years of experience in IT and Plans to do MBA in US. My question is about Education Loan. I have heard that Banks like SBI, HDFC will offer upto Rs. 20 Lacs for study MBA in US. I have an Agricultural land which fall under rural area. I want to submit that land as a collateral security to the bank. Now my question is banks will accept agricultural land as a collateral because as it is in rural area?

Yes, banks will definitely accept your agricultural land as a collateral security for the education loan. Since it is agricultural land, so you need not pay tax for the land. Hence you will not have any tax payment proofs. Thus, you need to keep the papers of the land as mortgage to the bank. You will also have to give the veto power to the bank that the land can be used as per bank's wish if you are unable to repay the loan which might involve converting it from agricultural land to commercial land.

I want to study in australia for MBA and my father is an agriculturist i have only agricultural land which is under rural area but the manager of pnb branch said that your land should be under urban area instead of rural so bank do not morgaged my land as security because it is under rural area Bank do not give me a loan so what will i do now tell me please.