How do I get an educational loan by having an agricultural land as a collateral?
You can get an education loan with various types of collaterals, including agriculture land. However, you only need a collateral for a loan amount greater than ₹7 lac. For any loan amount less than that, you do not need a collateral.Any student can apply for an education loan, with the following eligibility criteria:The candidate must have obtained admission in a recognised institution or repute.The candidate must have obtained admission for one of the following courses:a) Job oriented professional degree courses such as undergraduate or postgraduate degree programsb) Job oriented professional diploma coursesc) Job oriented technical degree coursesd) Courses conducted by CPA (Certified Public Accountant) in USA and CIMA (Chartered Institute of Management Accountants) – LondonThe education loan covers various expenses of the studies, including tuition fee payable to the university/ college, examination/ library fee, caution deposit/ refundable deposit and other expenses such as travel expenses, or expenses for books and laptop.The documents required for the loan application would be as follows:Complete application formTwo passport size photographsLetter of admission from the universityDocuments on the cost of studiesKYC documents of the candidate and the co-applicantCo-applicant and/or guarantor’s proof of income such as bank account statement for the last six months
Can I use agricultural land as security for an educational loan abroad?
No private/public bank or NBFC provide an education loan with agricultural land as a collateral.Here are the available options:There are two types of collateral, which are accepted:Immovable property such as only House/Land(Non agricultural)/PropertyLiquid Securities such as Gold, Fixed deposits, LIC policies, Govt. bonds etcPublic banks like SBI, Bank of Baroda accepts Third Party Collateral as well. Which means, You can pledge the property of your relatives such uncle/ aunt/ grandparents. Even family friends’ property can be accepted. Just go through the following article to have a brief about collateral education loans - Collateral Education Loan : All you need to knowThere is nothing to worry if you can’t pledge any collateral or if your property isn’t eligible to be a collateral (Agricultural land or property in Gram Panchayat etc), then there are many lenders such as NBFCs & private banks, who can provide unsecured edu-loans to study abroad.ROI (Rate of Interest) for an unsecured loan varies from country to country & sometimes ROI depends on your course & scores too. But sometimes it may be expensive to approach NBFCs directly, as their ROI is always higher compared to Public banks.I would recommend you to contact WeMakeScholars team, to avoid further complications. As it is funded by Govt. of India, they can negotiate the ROI on behalf of you and make your process way easier & their financial officer will be able to help you in solving all your bank related queries & issues.
Why isn’t an education loan given on agricultural land?
Well….the bank ask for mortgage for a situation when you are not able to repay the loan,so in that scenario if the bank grants you an educational loan against an agricultural land,then in that case the bank itself cannot do any commercial activity on the land,in a condition where you fail to repay the loan amount so this is the reason why banks fo not consider agricultural land as collateral.Hope this was helpfull.
Is there a way to avail an educational loan against agricultural land as a collateral?
Let me make things clear, what you are seeking is a loan against property which can be approved against an agricultural land as security, and you want to use the capital to fund higher education. It is clearly different from agricultural loan or loan against agricultural land offered only to farmers. So, without confusing between the two options, the answer is NO - you cannot take a loan against your agricultural land to fund your higher education.The statement stands true in all cases of loan against property wherein the mortgaged property is agricultural land. Why? According to RBI, no lender in India is allowed to lend money against an agricultural land. You can mortgage, your home or shop or Fixed Deposit or a non-agricultural land only to obtain the required sum which would also be available with end-usage flexibility. That said, you must consult different lenders offering a loan against property in India. They might accept agricultural land as a mortgage under certain circumstances if their policies allow them.In all other cases, you can mortgage a non-agricultural property as a mortgage for a secured loan. You can also take a personal loan or go for the regular education loans offered by banks and NBFCs.
Can I get an education loan of 30 lakhs (abroad) by keeping my agricultural land as collateral security?
Yes,you can pledge the agricultural land you own as collateral security for availing an educational loan.You could apply for SBI Global Ed-Vantage scheme. It has low interest rates,low processing fee etc.Low interest rate - 9.5%-10% onlyLoan amount - Rs. 20 Lacs to Rs. 1.5 Crore.Low processing fee- INR 10,000/- onlyMargin-10%,90% cost of course is available for financingSBI accepts third party collateral which means if you don’t have direct collateral someone apart from you or your kin can pledge collateral.Moratorium period is course duration and an additional 6 months. No penalty for early repayment and you can repay the loan until 15 years.The co-signer/co-applicant should be your parents/guardian/parents-in-law/spouse.Faster approval of loan,requirement of utmost 3 bank visits and entitlement to upto INR 10,000/- cashback if you apply onlineHope this helps! :)
Which banks provide educational loans with agricultural lands as collateral?
No banks/NBFCs provide an education loan with agricultural lands as collateral.Let me tell you the basics of education loan. There are two types of education loans.1. Collateral/Secured2. Non-Collateral /UnsecuredJust go through the following article to have a brief about education loans - Everything you need to know about education loan for abroad studiesFor Secured loans, There are two types of securities which can be accepted.Immovable property: House or a Flat or LandLiquid security: Fixed deposit, LIC policy, Bonds, etc.Third party collaterals (collaterals not belonging to family) are acceptable as well.In case of an immovable property, you can get up to 80% of your collateral value. Whereas, if you have fixed deposits as collateral, you will get 100% of your collateral value.Non-Collateral - In case of non-collateral loan you need to contact NBFCs as they provide up to 40lakhs for an education loan, without collateral. But NBFCs charge higher ROI & varies from customer to customer.Therefore, I would recommend you to contact WeMakeScholars team, to avoid further complications. As it is funded by Govt. of India, they can make your process way easier & their financial officer will be able to help you in solving all your bank related queries & issues.
Can we get an education loan using agricultural land as collateral?
What security does one needs to provide for the loan?The security depends on the loan amount. It is quite possible that banks may not require security for a loan of up to Rs 4, 00,000, but would require it for amounts greater than that. These limits are usually in slabs that vary with banks. The usual securities that the banks generally take are National Savings Certificates (NSCs), bonds, gold, vehicle, house or property, agricultural land etc. In addition to these, some banks might also require the applicant to have a life insurance policy equivalent to, or greater than, the loan amount.So yes they accept agricultural land as collateral for education loan.hope this is helpful. Visit : Financial Advice : Life, Health, Auto Insuranceor give us a missed call to learn more.or follow us on Quora, Facebook and twitter
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Do banks provide educational loans for an MS in the US against agricultural land? If yes, which ones?
No banks/NBFCs provide an education loan with agricultural lands as collateral.Let me tell you the basics of education loan. There are two types of education loans.1. Collateral/Secured2. Non-Collateral /UnsecuredJust go through the following article to have a brief about education loans - Everything you need to know about education loan for abroad studiesFor Secured Loans from public banks like SBI, There are two types of securities which can be accepted.Immovable property: House or a Flat or LandLiquid security: Fixed deposit, LIC policy, Bonds, etc.If you can’t pledge any collateral, then there are many lenders who can provide unsecured edu-loans to study abroad. ROI(Rate of Interest) for an unsecured loan varies from country to country & sometimes ROI depends on your course & scores too. But sometimes it may be expensive to approach NBFCs directly, as their ROI might be slightly higher compared to Public banksI would recommend you to contact WeMakeScholars team, to avoid further complications. As it is funded by Govt. of India, they can negotiate the ROI on behalf of you and make your process way easier & their financial officer will be able to help you in solving all your bank related queries & issues.