Education and Career Forum

Hello sir, I have a fixed deposit of 5 lakh for seven year and now I want to admit my son in degree course. Can I get education loan on this Fixed deposit? Requirements and conditions for it?

You need not to apply loan on fixed deposit for education. You simply have to apply for education loan for which you will be required following documents:

1. Mark sheet of 12th standard.
2. Residence address proof.
3. Parents ID.
4. Online counselling participation slip.
5. Some declarations on stamp papers as per the bank policy.
6. Name of college with bank details in which you are going to admit for further education.

Please note that you will not get any cash payment against education loan. Bank will issue cheque addressed to college's account.
You have to payback the same after one year of completion of education in instalments.

If you are going to take loan of Rs. 7.5 Lac and above then you will need collateral security of equal amount as of loan like house property, land, gold, LIC, fixed deposit, etc. If you are going to take loan amount which is less than Rs. 7.5 lac then you will need 3rd party guarantee and up to Rs. 4 Lac of education loan no security is required by the bank. Yes, you can get the loan if you have equal amount of fixed deposit as of loan amount you are going to take.
The borrower needs to submit the Id proof, address proof, educational documents, etc. The borrower should be the citizen of India and should have secured admission in the college/institute which is affiliated with the recognized university and the proof of same have to show to the bank like admission letter, fee receipt, etc.