Education Loan documents 101- State specific collateral/property documents

Welcome to the 4th episode of the Loanflix web-series titled “Education loan documents 101” which answers all the major FAQs surrounding Education loan documents.

As discussed in the Loanflix episode #2, there are two kinds of collateral- immovable property and liquid securities. The list of documents required for such secured education loan is detailed in this episode. Below is an outline of the points covered in this video.

What are the documents required to pledge an immovable property as collateral?

• Property Title Deed and Registered Sale Agreement
• Original registration receipt for the above agreement
• The chain deed or link document or clearance document or even Encumbrance certificate (EC). It is required for a period of 30 years.
• If any Allotment Letter issued By Municipal Corporation / Authorized Govt. Authority Like MHADA, CIDCO, HUDA, DDA, JDA, GIDC etc. then that is required.
• Latest property tax copy or Latest electricity bill.
• If collateral is a flat then completion certificate and occupancy certificate is required for constructed properties.
• Copy of municipality approved building plan or plot layout is also required.

What properties are not acceptable?

• Agricultural land.
• Properties under gram panchayat rule (not always, but in many places).
• lands without boundaries.

What are the special education loan documents required in certain states?

Following is a list of education loan documents that are required from candidates residing in the following Indian states.

Maharashtra:

• NOC from the builder/society is required in bank’s format- WeMakeScholars team will be able to share that format with you.
• All payment receipts of transactions to the builder or seller are required.
• Index II is required
• A share certificate issued by the society
• Conveyance Deed of the society
• Certified copy of board resolution or Power of attorney from Builder, is required.

Karnataka (especially Bangalore):

• Khata extract and Khata certificate are required.

Telangana:

• Layout Registration Scheme (LRS) Building Regularisation Scheme (BRS) documents are required for candidates applying from Telangana.

Which documents are acceptable if liquid securities are pledged as collateral?

• Fixed Deposit: If a candidate wants to pledge Fixed Deposit as collateral, it is mandatory to open an FD account with the lending bank. With regards to the required document, only FD paper or certificate is to be submitted.
• Insurance Policy: Candidates must ensure that it is a maturing policy. Only two documents are required- Policy paper and surrender value certificate.
• Gold: If one is using gold as security, one needs to deposit the gold in the bank. If you have a copy of the purchase proofs, then you have to add that too. 
• Government Bonds: The only document needed is the bond certificate.

We hope that the points discussed above gave you a glimpse of the types of education loan documents required. To get a better picture, do watch the episode below. Also, don't miss the episodes of the web-series- Loanflix. We come up with an interesting topic for every episode and try to help you understand it better.