Education and Career Forum

Hello, I am interested to apply for an education loan in Oriental Bank of Commerce Bank. After searching alot I didn’t understand the term Collateral Security. Can I know about this Collateral Security of Education Loan in Oriental Bank of Commerce?

Collateral security is something which has a monetary value, like fixed deposit, property, jewellery, etc. For education loans of higher value most of the banks will ask for collateral security, just for security reason. It is mainly done to make sure that in future if student is not able to pay back then they will have an option to recover it by other means.

Agricultural land is not considered as collateral. Hence, if you have anything like fixed deposit, property, bonds, insurance policy, etc then you can use it as collateral.