Education and Career Forum

Hello sir, I want to study B.Sc Biotechnology from top ten private colleges of India. I want to apply for an education loan at SBI bank. So, please tell me what can I lend as Securities and collateral required?

It is good to see your aim of pursuing your undergraduate course from the top institutes of the country. You can definitely seek education loan from SBI to meet the expense of your course. There are many tangible properties which you can keep as collateral security to get your education loan sanctioned. The properties include :-

- Land
- Building
- Govt. Securities
- Public Sector Bonds
- NSC/KVP/LIP/
- Banks Term Deposit

These should be in the name of Student/ Parent/ Guardian/Guarantor with suitable margin.

There are three categories for Education loan:

1. Upto sanction of 4 lakhs rupees: There is no need of any security but parents must be joint borrower along with candidate.

2. Amount: 4-7.5 lacs rupees: Along with parents, collateral security as third party guarantee.

3. Above 7.5 lacs: Parents must be joint borrowers plus tangible collateral security of suitable value required.

Collateral can be:

1. Non agricultural land.

2. Fixed deposits.

3. Residential property.

4. Life Insurance.