Education loan with collateral — the lowest rates available.
If you have property, an FD, or an LIC policy to pledge, a secured education loan is almost always the cheapest way to finance your degree abroad.
A secured education loan (also called a collateral-backed loan) is one where you pledge an asset — usually immovable property, a fixed deposit, or a life insurance policy — as security to the lender. Because the lender's risk is significantly lower, they offer you their best terms: the lowest interest rates, the highest loan amounts, and the longest tenures.
What can you offer as collateral?
Immovable Property
Residential or commercial property — house, flat, plot, or office space. Most common and widely accepted. Must be free of existing loans or have sufficient equity.
Fixed Deposit (FD)
Bank FD pledged as collateral — one of the simplest options. Processing is faster since no property valuation is needed. Loan amount typically up to 90–95% of FD value.
LIC / Insurance Policy
Life insurance policy with surrender value — accepted by most public sector banks. Loan amount based on the policy's surrender value at the time of application.
Who typically qualifies
Secured loans are available across all destination countries — USA, UK, Canada, Australia, Germany, Ireland, France, New Zealand, UAE, and more. The collateral is evaluated in India regardless of where you study.
Lenders and indicative rates
Rates vary by country, university, and profile. The table below shows general secured loan rates from our partners. See country-wise detailed rates →
| Lender | Max Loan Amount | Indicative Rate | Margin Money | Collateral Type |
|---|---|---|---|---|
| State Bank of India | Up to ₹3 Cr (UK) / ₹1.5 Cr (others) | 9.65% – 11.50% | 10% | Property |
| Union Bank of India | Up to ₹2 Cr | 9.25% – 10.85% | 10 – 15% | Property / FD |
| Bank of Baroda | Up to ₹1.5 Cr | 9.15% – 10.15% | 10% | Property |
| Punjab National Bank | Up to ₹1.5 Cr | 8.95% – 9.85% | 15% | Property |
| ICICI Bank | Up to ₹3 Cr | 9.75% – 11.50% | 0 – 15% | Property / FD |
| Axis Bank | Up to ₹2 Cr | 9.50% – 11.25% | 5% | Property / FD |
| Credila | Up to ₹3.5 Cr | 9.5% – 11.5% | Nil | Property / FD |
Rates are indicative as of 2025–26 and subject to change. Margin money is the portion of the total cost you pay yourself. Final rate depends on your profile and lender assessment.
What does the process look like?
Share your profile and collateral details
Tell us your admission, loan amount needed, and what collateral is available — property address, FD amount, or LIC policy details.
We shortlist the right lenders
Not every bank accepts every collateral type or location. We match you to lenders where your collateral fits their criteria.
Property valuation and legal check
The bank sends a valuer to assess your property and a legal team checks the title — usually takes 5–10 working days. We track this for you.
Documents submitted and sanctioned
Once valuation is done, documents are filed. Sanction typically follows in 3–7 working days.
Loan disbursed to your university
Funds are remitted directly to your university — we track until the money lands.
Secured vs Unsecured — quick comparison
| Point | Secured Loan | Unsecured Loan |
|---|---|---|
| Interest Rate | Lower (8.95% – 11.5%) | Higher (10.25% – 14.5%) |
| Max Loan Amount | Higher (up to ₹3.5 Cr) | Lower (typically up to ₹75 lakh) |
| Collateral | Required (property / FD / LIC) | Not required |
| Processing Time | Longer (property valuation adds 7–15 days) | Faster |
| Risk | Asset at risk if default | No asset at risk |
| Best For | Students with collateral who want the lowest total cost | Students without collateral or who need speed |
Common questions
Can I use someone else's property as collateral?
Yes — co-applicant's property (typically a parent or guardian) is accepted by most lenders. The property owner and the co-applicant are usually the same person in most applications, but this varies by lender.
What happens to my collateral if I can't repay?
If you default after the moratorium period, the lender can initiate recovery against the pledged asset. This is why it is important to assess your repayment capacity honestly before borrowing. Our counsellors will help you understand the true monthly EMI before you commit.
Can I pledge property in a different city?
Yes, in most cases — but the bank will send a valuer to that city. Some banks have geographic restrictions; we check this for your specific property location.
What is margin money and do I have to pay it upfront?
Margin money is the percentage of the total study cost you fund yourself — the bank covers the rest. For example, 10% margin on a ₹30 lakh loan means you pay ₹3 lakh yourself. This is typically paid to the university from your own funds before or alongside the loan disbursal.
Is my property freed once I repay the loan?
Yes — once the loan is fully repaid, the lien on your property is released and the original documents are returned to you.
Have collateral? Get the best secured rate.
We'll check which lenders accept your specific collateral, negotiate the rate, and walk you through the process — one counsellor, start to finish.
Check My Eligibility No collateral? See optionsSecured or unsecured — we find the right fit.
Share your profile and we'll tell you what you qualify for, on the first call. Free, no obligation.
Talk to a Counsellor