India, abroad & security
Education Loan Collateral Checklist
Papers, valuation and legal steps for pledging property, FDs or policies against an education loan.
Updated 30 September 2026 · 8 lenders trackedLowest education loan rate
6.75%
Union Bank Education LoanWhat you need to know
If your loan needs security, getting the collateral papers ready early is the single biggest time-saver. Banks run a valuation and a legal scrutiny before sanction and create a mortgage or lien before disbursal.
Property documents
- Sale deed / title deed and previous chain of title (often 13–30 years, as the bank asks)
- Encumbrance certificate for the same period
- Mutation / khata extract and latest property-tax receipt
- Approved building plan and occupancy/completion certificate
- Society NOC and share certificate for flats
- ID of all owners — every owner must sign the mortgage
Other collateral
| Security | What to provide |
|---|---|
| Fixed deposit | Original receipt; lien marked |
| LIC / insurance policy | Policy bond; assignment in the bank’s favour; value = surrender value |
| NSC / KVP | Original certificates; pledge/transfer |
| Government securities | As per bank process |
Process and costs
- ValuationBank-empanelled valuer inspects and reports market value.
- Legal scrutinyAdvocate verifies title and encumbrances.
- MortgageEquitable mortgage by deposit of title deeds or registered mortgage, with stamp duty as per state.
- CostsValuation/legal fees (e.g. Bank of Baroda ₹8,500 per property), stamp duty and registration.
Frequently asked questions
Can a relative’s property be used?
Yes, if the owner agrees to join as guarantor/co-obligant and signs the mortgage.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.