Types of Overseas Education Loan

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Types of Overseas Education Loan
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Once you dive deep into the Kinds of Overseas
Education Loan and the loan process, you will
come upon terms like secured or collateral
education loan or unsecured or non-collateral
education loan.
Collateral or Secured loans
Non-Collateral or Unsecured Loans
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Collateral Education Loan
Collateral Education Loan or the Secured Overseas
Education Loan is usually provided by the
Government banks like SBI, Bank of Baroda etc.
NBFC can be chosen over the public banks if the
collateral is of a lower value compared to the
required loan amount. Rs. 10 lakhs to Rs. 1.5
crores is the amount of Collateral Education Loan
you could get with an interest rate generally
ranging between 9.4 to 10.3.
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Types of Collaterals
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Immovable Property
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Liquid Securities
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Third party Collateral Education loan
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Immovable Property
Appropriate property documents are required along
with its layout and other city-specific documents
if applicable. The immovable properties sometimes
have a collateral margin. This means the loan
amount which you are eligible to get will not be
equal to the value of the property.
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Liquid Securities

• A liquid asset is an asset that can easily be
  converted into cash within a short amount of
  time. The types of liquid securities are as
  follows
• Fixed Deposits (FDs) with Banks - 90 of total
  amount
• Life Insurance Policies (LICs) - 100 surrender
  value of the policy
• Government Securities - Public Sector Bonds - 25
  in Bank's favour
• Shares / Debentures - 50 in Bank's favour
• NSCs, Banks own deposits - 100 of face value
  accrued interest
• These liquid funds can be converted into cash
  instantly whenever required.

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Third party Collateral Education loan
In this case, collateral placed can be any first
blood relatives property or even cousins
property is accepted. Apart from them the rest of
the family members property is not accepted.
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Non-Collateral Education Loan
Non-Collateral Education Loan or Unsecured
Overseas Education Loan is usually offered by
Non-Banking Financial Company commonly referred
to as NBFCs. These kinds of loans do not need the
applicant or co-applicant to place any collateral
or security.
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