Loan With Collateral

Secured Education Loans

For loan amounts exceeding ₹7.5 lakh (or to secure better interest rates), banks typically require collateral. This can significantly reduce your interest rate and increase the approved amount.

Accepted Collateral Types

• Residential or commercial property
• Fixed deposits
• Government securities and bonds
• Life insurance policies (surrender value)
• Gold or gold ornaments (select lenders)

Benefits of Collateral-Based Loans

• Higher loan amounts (up to ₹1.5 crore or more)
• Lower interest rates (0.5–1% less than unsecured loans)
• Longer repayment tenure
• Easier approval process

Things to Keep in Mind

The collateral value must typically be 1.2–1.5 times the loan amount. Property documents will be held by the bank until the loan is fully repaid.