We’re here at the second episode in the web series- “Loanflix- Education loan Simplified”. As you know, our motive is to make sure that every student takes an informed decision when it comes to an education loan. The last episode was on Introduction to study abroad education loan.
Today we’ll be discussing about various providers offering secured/ collateral based education loans, their rate of interests, the co-applicant/co-borrower details, loan margin basics etc.
What are the different types of collateral accepted?
Two different categories of collateral can be accepted including
a) Immovable properties like house/ flat/ non-agricultural land
b) Liquid securities like LIC policies/ FDs/ gold/ bonds
What is third-party collateral?
Third party collateral basically means that you can put up anyone’s property, they can be a family friend, your uncle or aunts or anyone from your far relatives. If they have an eligible collateral like those mentioned before and they are ready to help you out with your loan by mortgaging their property, it is accepted by nationalized banks.
Most of the bank branches will deny it, just because they are not aware of it. So, do seek the help of your WeMakeScholars Financial Officer, for speaking to the branch about it.
What are a legal report and valuation report for an education loan?
For the bank to take your immovable property as collateral, you have to get a clear legal report from a Bank approved lawyer. Also, for considering the valuation of your property, a bank approved Civil Engineer, has to give a valuation.
But don’t worry, you can get guidance on both the above processes from your WeMakeScholars financial officer.
Here comes the hack of the episode! Most of the students wait for their admits to starting the loan processing. But, this is not the best way. Because steps like legal report and valuation can be done beforehand and these reports are valid for a minimum of 3 months and up to 3 yrs.
So, it is always a wise idea to get it done even before you get admission because this is will almost predict the chances of you getting a loan or not.
Hope this video would be insightful and you could get a general idea about secured education loans. As you all know, we'll be making this an in-depth series on education loans covering each and every topic. Stay tuned for the next episode on the topic “What is an unsecured study abroad education loan?”- covering in and out of an unsecured loan, the Rate of interest, pros and cons etc.
As requested, please don’t forget to subscribe to our channel for more informative videos. And like and share with your friends if you found it useful. Good luck!
Date And Time
Timezone : (GMT+05:30) Chennai
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Damini is the Cofounder & CEO of WeMakeScholars.com. It’s a BITS start up supported and funded under the IT Ministry, Govt. of India. The organisation’s motive is to offer unbiased collateral/non-collateral based education loan support to students who are planning for studying abroad. As this initiative is under the digital India campaign, it's at free of cost. WMS works with 14+ banks (public/pvt) in India and help you get the best edu loan matching your profile.
Prior to launching WeMakeScholars, Damini had done her masters from the University of Sheffield, UK. Her education was funded under the Developing Solutions Masters Scholarship which covered her full tuition fee ($ 38,000). Damini is also a gold medalist in her Bachelors and also won the outstanding student award from the Vice president of India.
She was the speaker at TiECon 2016 at Silicon valley, San Francisco in the social entrepreneurship segment. She was also covered in the Asian Entrepreneur magazine in the “Women on Top in Tech”, a global series of Women Founders, CEOs & Leaders in Tech.