Education and Career Forum

Hi Sir,
I just want to know that is there any need to give some property papers as a security for applying an Education Loan from any Bank? And for claiming loan amount, does a guarantor have to submit its original property paper and block the same or there is no need for property submission to the bank?

Yes, it is necessary to submit the original property documents to get an Education loan from any Bank. The Bank will ask you original property documents only if the loan amount exceeds more than Rs. 7.5 lakhs, for loan amount less than Rs. 7.5 lakhs, third party guarantee is required to get an Education loan. So, if you are taking an Education loan of more than Rs. 7.5 lakhs, you have to submit original property documents to bank and once, you have repaid the loan, you can get back your original property documents.

There is no need to submit original property papers while applying for education loan. For loan below 7.5 lakhs, there is no requirement of original property papers. However, the bank will ask for proofs of your property and income tax certificate as well. For loan above 7.5 lakhs, mortgage is required and at that time papers of the property which you are mortgaging will be required. You need to furnish registry papers of the concerned property which you are mortgaging to the bank.

For sanction of education loan upto 4 lacs rupees from any bank, there is no need of either guarantor or any collateral. If you want education loan above 4 lacs rupees from any bank, then bank asks for a guarantor with certain source of income either salaried or pensioner etc.

When a candidate seeks education loan from any bank above 10 lacs rupees then collateral is required for sanction of loan. Collateral can be anything either security deposit or land etc. You will have to submit original papers for sanction above ten lacs rupees.

Do we need to collateral the property papers to bank before sanction letter or can we do that before the loan actually gets disbursed