E.g., public banks like SBI and BOB demand security for education loans over INR 7.5 Lakhs. Such education loans that need a guarantee in the form of collateral from the borrower (or co-applicant) are called secured loans. They have lower interest rates and are easier to get since the risk to the bank is much lower.
Just so, what is the difference between a secured and unsecured student loan?
A car loan and mortgage are the most common types of secured loan. An unsecured loan is not protected by any collateral. If you default on the loan, the lender can’t automatically take your property. The most common types of unsecured loan are credit cards, student loans, and personal loans.
Also question is, what is collateral Education Loan?
10.5K. CONTENT ID: 1156. When you apply for an education loan, most Indian banks require Collateral security. It means any property, movable or immovable, which is offered for securing a loan.
Who is eligible for an education loan?
Education Loan Eligibility Tabular representation
| Particulars | Eligibility |
|---|---|
| Age | Minimum- 18 years Maximum- 35 years |
| Academic record | Proven- good |
| Qualification | Pursuing graduate/postgraduate degree or a PG diploma. |
| Income source | Parents/Guardians |
What is required for education loan?
Documents for Education Loan for salaried individuals:
Bank Statement / Pass Book of last 6 months. Optional – Guarantor Form. Copy of admission letter of the Institute along with fees schedule. Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses.
Are secured loans easier to get?
Secured loans are usually easier to get approved for if you have poor credit or no credit history. This is because using your property as collateral lowers risk for the lender.
What are the main advantages of a secured loan?
Some advantages of secured loans include:
- You may be able to request larger amounts of money because of the reduced risk to the lender.
- Some lenders offer longer repayment terms and lower interest rates than those offered for unsecured loans.
- It may be easier to get a secured loan because of the collateral.
How is student loan debt secured?
Secured debt means the loan is based on something that can be repossessed by the bank, such as a mortgage or an auto loan. Both a house and a car make the loan more ‘secure‘ because the bank can always take that ‘property’ back if you don’t make payments.
Can I get education loan without guarantor?
The security pledged against a loan is termed as collateral. However, you can get an education loan without pledging any security. … Under this scheme, you can get a collateral-free loan amount for up to Rs 7.5 lakh without providing any third-party guarantee.
How much unsecured education loan can I get?
According to RBI maximum study loan for education in domestic country is Rs. 10 lakhs and for studying abroad, it is Rs. 20 lakhs. Guidelines show that loan taken up to Rs.
Is education loan good or bad?
Some students take an education loan for graduation and then avail of the top-up facility to complete their post-graduation. “Taking a top up on education loan is bad, because it will increase the liability further. It is better to finish the first education loan before taking the second one,” says C. S.
Is getting education loan easy?
Easily available: Education loans are widely and easily available. In fact, they are a priority product in all banks as per the RBI’s guidelines. Varied loan amounts: Banks can offer loans anywhere between Rs. 2 lakhs and Rs.
Which bank provide education loan easily?
Compare Student Loan Interest Rate
| Bank | Education Loan Interest Rates in India | Education Loan Interest Rates in Abroad |
|---|---|---|
| SBI | 7.00% | 8.80% |
| UCO Bank | 9.30% | 9.30% |
| Union Bank of India | 8.40% | 8.05% |
| United Bank of India | 10.65% | 10.65% |
Can I get 50 lakhs education loan?
The monthly installments on an education loan of 50 lakhs works out at least to 50,000-60,000. But,Most banks dont offer more than 7 lakh to 10 lakh rupees without collateral. … Generally taking loan more than 7-8 lakhs the bank asks for a collateral for the loan amount.