Co-Applicant & Collateral Loan

What is Co-Applicant & Collateral Loan?

This is an education loan where a co-applicant is required, and the student must provide collateral (like property, fixed deposits, or insurance). Offered by most banks and financial institutions.

Key Features

• ✔ Lower interest rates due to the secured nature of the loan.
• ✔ Co-applicant's income and credit history are considered.
• ✔ Collateral can be residential property, fixed deposit or life insurance policy.

Eligibility

• Co-applicant with a stable income source.
• Clear and marketable collateral.
• Admission to a recognized university.
• Credit History Consideration:
  • Lenders may consider the student's and co-applicant's CIBIL score (Credit Information Bureau India Limited) or other credit reports to assess repayment ability.
  • Even students or co-applicants without a Credit/CIBIL score are eligible, as lenders may assess loan eligibility based on other factors like the student's university ranking, course, and co-applicant's income profile.

Suitable For:

• ✔ Students who can provide assets as collateral.
• ✔ Students who are planning for Undergraduate course.
• ✔ Students seeking the lowest possible interest rates.
• ✔ Students seeking for higher loan amount. For Eg. loan amount of more than 1 crore rupees.

Benefits

• ✔ Lower interest rates.
• ✔ Higher loan limits due to security.