Education and Career Forum

Hello everyone, I have a Life Insurance policy. I want to apply an education loan from IDBI 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?

LIC policy is an insurance policy and most of these policies don't have any value, like fixed deposits, gold, property, etc. Some LIC policies can be used to take a small loan, which is for personal use only.

Hence, if we look at the use of an insurance policy, it is only meant for protection of a person, and it is not a financial instrument. Hence, banks may not consider it as a collateral.

Originally Posted by Unregistered

Hello everyone, I have a Life Insurance policy. I want to apply an education loan from IDBI 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?

Yes, LIC Policy acceptable against Collateral Security under IDBI Bank Education Loan Scheme. Any fixed income security like Government securities, Public Sector Bonds, NSC, KVP, LIC policy, Debentures, Fixed Deposits with IDBI Bank, etc. having fixed returns with a surrender value in the name of Student / Parent / Guardian / Co-applicants are accepted as security for education loan in IDBI Bank. Candidates have to contact the IDBI Bank branch for more details.