Education and Career Forum

Hello everyone, I have a Life Insurance policy. I want to apply for an Education Loan from Karnataka Bank. I am interested to study MCA(H) 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 of course, LIC Policy is acceptable against collateral Security under Karnataka Bank Education Loan Scheme. The value of the collateral security should be equal to the education loan amount along with assignment of future salaries in favour of Karnataka Bank. Tangible collateral security may be documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures.

It will depend on the kind of LIC policy you are having. If the concerned policy has some maturity value then surely it will be considered as collateral. It will also depend on the maturity date of the LIC policy and your education loan payment duration.

Just make sure you have got the right kind of policy then only it will be considered by the bank as collateral. Fixed deposits are mostly considered for it.