Education and Career Forum

Dear Sir,
I just want to know that why is one needs to produce security for applying an education loan? Can Pagdi Security be mortgage for an Education Loan?

The security is necessary to apply for an Education Loan because, without security banks will not provide you the loans. Even, if the candidate who have taken the education loan is not unable to pay the loan amount then, the bank has the right to sell the property and retrieve its amount. All the houses which are registered by government can be kept as security for taking education loan.

Educational loan is provided to those students who pursue professional course such as Engineering, Medical, Hotel Management etc. You are interested to apply for the educational loan and want to know about the security required for educational loan.

>>The first thing is that there is no requirement of security or any kind of mortgage for taking the educational loan. Following are the documents required while applying for
educational loan:

--Admission Slip

--Color Photo

--Xerox copy of previous academics

>>You have to fill the application form for educational loan and submit the form with relevant documents. After validating all the documents from the bank official your loan will be sanctioned within 15 days. There is no requirement of pagdi or security for an educational loan. For more details you can visit to nearest bank branch office regarding this.

As per guidelines of RBI, Borrowers needs to produce Some surety as security if one gets default they can utilize that asset/mortgage to bring out that amount.

But where as it is exceptional in " Educational Loans ". As per new guidelines No need to put any security to avail Educational Loan upto " Rs. 4Lacs " . So Any Nationalized bank will give you the Loan with out taking any surety into account.

But this all as per Merit only.