Education Funding Options - For Both Abroad & India

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SECURED EDUCATION LOAN

• Secured education loans are offered by nationalised banks, private banks and NBFCs against acceptable collateral security. For overseas education, eligible applicants may access higher loan amounts depending on the lender, course, institution and collateral offered.
• A secured education loan generally offers:

Lower interest rates

Flexible repayment options

Multiple interest-rate plans

• The loan can be secured against assets such as residential or commercial property, LIC policies, government securities, bonds, shares and other acceptable investments, subject to the lender’s policies.
• Since the lender undertakes legal verification and collateral valuation, the processing time may be longer than that of an unsecured education loan. The loan amount is also determined based on the lender’s approved valuation and applicable margin requirements.

UNSECURED EDUCATION LOAN

• An unsecured education loan is an option for students who do not wish to pledge collateral or property against the loan. Such loans may be offered by nationalised banks, private banks, NBFCs and international education-finance providers, subject to the lender’s eligibility criteria.
• The key advantage is faster and more streamlined processing, as collateral-related legal verification and property valuation are generally not required.
• The loan amount and interest rate depend on factors such as the lender, university and course, country of study, academic profile, co-applicant’s income and creditworthiness
• NBFCs and few private banks offer up to Rs 50 lakhs as a loan amount whereas nationalized banks provide unsecured loan up to Rs 7.5 lakhs 
• Key benefits:
  No collateral | Faster processing | Convenient documentation | Profile-based funding