Education and Career Forum

Hello everyone, I have a Life Insurance policy. I want to apply for an Education Loan from City Union Bank. I am interested to study MBA with the help of an Education Loan. So, I would like to know that this bank avail an education loan with LIC policy as a collateral security?

Many banks and financial institution provides loan without collateral security.

Since the risk associated with secured loans is less , the interest rate may be lesser than unsecured loan.

Loan amount upto 4 lacs doesn't require any collateral security.
When amount exceeds the specified limit then only collateral security or third party gurantee is required.

Above 7.5 lacs _tangible collateral security of minimum value equivalent to loan amount and interest accumulation during course and moratorium period , acceptable to the bank.