InvestorQ : Does an education loan require security or collateral?
Manisha Mehta made post

Does an education loan require security or collateral?

Answer
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seema Upadhyaya answered.
1 year ago


Collateral requirement of banks and non-banking finance companies (NBFCs) vary from one bank to another; however, the following is generally the thumb rule:

  • For loans up to Rs. 4 lakh – No collateral or third-party guarantee is required.
  • For loans from Rs. 4 lakh to Rs. 7.5 lakh – Collateral is not needed but third-party guarantee is required
  • For loans above Rs. 7.5 lakh – Collateral is required.

Some of the key types of collateral accepted by banks include LIC/NSC/KVP, fixed deposit/s held with the lender, property documents owned by the applicant or co-signor.