Education and Career Forum

Sir/Madam,
I will be applying for an educational loan. I have heard that except SBI, some banks ask for collateral security even though this is against the Financial Ministry's directives. How true is this?

To apply for educational loan the candidate must have keep collateral security for secuirty reasons.

There is no need of collateral security for the educational loans below Rs.4 lacs.

Generally, the collateral security is asked if the educational loan is above Rs.4 lacs. It is applicable for all nationalized banks.

Yes, Collateral Security is mandatory to get Education loan from Banks. Even SBI asks for Collateral Security for providing Education loan. For getting education loan less than Rs.7.5 lakhs, there is no need of any Collateral Security. Collateral Security is mandatory only when you take Education loan of more than Rs.7.5 lakhs from Bank. So, if you take education loan of more than Rs.7.5 lakhsfrom Bank, it is mandatory to submit Collateral Security to Bank.