Education and Career Forum

Respected Sir/Madam,
My son wants to study his B.Tech in Delhi. I as his father allowed him but we need to get an Education Loan from Bank. So, I would like to know that getting an Education Loan from Bank of Baroda Life Insurance of a candidate is necessary? Please tell me as soon as possible.

There is no such requirement for education loan. Life insurance policy act as a security for education loan and if you don't have them also it doesn't matter.

Things like fixed deposits, funds and insurance policies can act as security in support of the the education loan. Those helps in getting rid of the requirement of guarantor.

No, there is no need to have Life Insurance Policy to get an Education loan from Bank of Baroda. If you need to get an Education loan of more than Rs. 7.5 lakhs, you have to submit collateral security documents such as lands, buildings, etc.,. The Collateral Security document value should be equal to the loan amount. But, there is no need to have Life Insurance Policy to get an Education loan from Bank of Baroda.

No, it is not necessary to have a life insurance policy in order to take education loan. You can definitely opt for education loan without any life insurance. Usually banks ask for life insurance policy to be embedded with the education loan so that if anything happens to the student, the bank can approach the insurance company. Usually for less loan amount and less period, there is no requirement of opting for insurance compulsorily. However, having LIC is ideal as it helps in getting the process completed in very less time.