Education Loans Based on the Security of Collaterals and Guarantee
Loan Against Depositsproperty: A student can avail education loan against his/her deposits.
Loan Against Property: Loan against property is also known as mortgage loans. You can get an Education loan against your flat, house or any other property.
Loan Against Securities: Debentures, bonds, equity shares etc are securities, against these securities you can avail loan for your education purpose.
Third-Party Guarantee: Your friends, family members or any other person can be your third-party guarantor. When you acquire an education loan against third-party guarantee, the third party will be responsible for repaying your loan if you fail to repay the amount.
Features:
- Collateral uses: To get the benefit of this type of loan, you have to provide property, assets or investments as collateral to secure the loan.
- Maximum amount: As collateral gives high security to the lenders, students can get a large amount of loan.
- Nature of repaying: It provides a flexible option to repay the borrowing loan.
Advantages:
- Large amount: Students can get a large amount of loan.
- Highly secure: Secure Lenders get highly secure collateral assets. It provides them low-risk management.
- Flexibility on repayment: Students can get flexible type of repayment option.
Disadvantages:
- Collateral issue: The students who are not able to provide collateral assets, will not get the loan.
- High-interest loan: As it is a secure type of loan, the students have to repay the borrowing amounts with relatively high interest rates.
- Limited: Very few students can achieve this type of loan.
Types of Education Loan
Education loans are very important in the perspective of students’ studies, especially for the students who are willing to study higher education. Education loan is often called student loans. There are various types of education loans available in India. In this article, we will learn about education loans along with the various types of education loans and their brief discussion.
Table of Content
- What is an Education Loan?
- Types of Education Loan
- 1. Education Loans Based on Location
- 2. Education Loans Based on the Course of Education
- 3. Education Loans Based on the Security of Collaterals and/or Guarantee
- 4. Loans for Parents
- Features & Benefits of Education Loan
- List of Expenses Covered in Education Loan
- Best Education Loan in 2024
- Conclusion
- FAQs – Types of Education Loan