What Are Some Bank-approved Collaterals For An Education Loan?

Secured education loans can give a higher loan amount at lower interest rates. But do you know which securities are accepted as collaterals?

Let’s find out!

Immovable property

If you have a residential or commercial property in your name, you can mortgage it and get an education loan against its value.

Plot of land

A plot of land can also be mortgaged with the bank provided it has clear boundaries and can be evaluated for assessing the loan amount. 

Investments

If you have investments like fixed deposits, bonds, mutual funds, insurance policies, etc., they are acceptable collaterals for the loan.

Third-party collateral

If you don’t have any collateral asset to pledge, the third-party or co-signor on the loan can pledge their assets as collateral.

Assets like agricultural land, land with no boundaries, unregistered properties, etc. are not accepted as collaterals and should be avoided.

IDFC FIRST Bank offers secured loan up to Rs. 1.5 Crore for higher education. Get quick sanctions and attractive interest rates.