Education and Career Forum

Hello everyone, I have a Life Insurance policy. I want to apply an education loan from Vijaya Bank. I am interested to study MBBS with the help of an Education Loan. So, I would like to know that this bank avail an education loan with LIC policy as a collateral security?

Yes, LIC Policy is acceptable against Collateral Security under Vijaya Bank Education Loan Scheme. The LIC policy should be equal or more than amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount of loan from the LIC policy. For loans above Rs. 7.50 lakhs besides taking parents as joint borrower, tangible collateral security is acceptable to the Bank along with assignment of future income of the student s). Tangible security includes the documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures etc.