Education and Career Forum

Sir, I have got 7000 rank in KIITEE and I am willing to take admission in B.Tech but it is not possible for my family to pay its fee expense. So, I want to take an Education Loan but my father's income is Rs. 90,000 per annum. Please help me to know what kind of securities requires to apply an Education Loan in SBI?

There are different conditions for amount of loans:

For sanction of education loan upto Rs 4 lac rupees: No security is required.

For sanction of education loan from 4 lacs to seven lacs: Guarantor is required.

For education loans above 7 lacs: Security is required. Security can be either papers of fized deposit, original land papers etc.

State Bank of India only asks for securities or collateral when amount of loan to be sanctioned is above 7.5 lacs rupees. For amount of education above this amount, you will have to give any collateral.

The collateral can be any fixed deposit of good amount, gold bonds, original papers of property or land etc. You can submit any of these as security for availing loan above 7.5 lacs rupees.

The securities for applying for education loan from State Bank of India can be any of the following things:

Fixed deposits.

Land or flat property original documents.

LIC bonds with majority of premiums paid.

Gold bonds or ornaments etc.

It depends on the loan amount and the concerned bank from which you are seeking education loan regarding the securities to apply for education loan. Since you want education loan from SBI, so mortgage will be required for loan amount beyond 4.5 lakhs. For other banks, mortgage is required for loan above 7.5 lakhs. For mortgage, the security which is usually asked by bank are - land, building, vehicle, government bonds, term deposits, LICs, NSCs, etc.