Education and Career Forum

Hello sir, I was applied for an education loan at IDBI against of my agricultural land but bank manager told me that your land is not sufficient for grant and if you could not pay the amount at time then we can't recover amount of loan by selling your land. Please tell me what should I do for an education loan?

You have applied for education loan against your agricultural land. It means that you apply for education loan of amount more than 4 lacs. That’s why the bank manager asks you for the security.

>>As the value of your agricultural land is less than the loan amount. So bank will not sanction your education loan. The only solution is that you have to take the education loan equivalent to the agricultural land value. You have to adjust the remaining amount from yourself or you can take a personal loan of the remaining amount.

The mortgage which you are offering - your land is not sufficient to compensate the loan amount which you want to seek. As a result you got such a response from the bank. You can approach other banks and see whether they accept your loan offer against the land or not. If they accept then go for that bank. Otherwise you have two options -

1. Lower the education loan amount
2. Keep some other property along with the land as mortgage for the loan.