I have a home loan that I am servicing for the flat I live in. My son is entering college now. Will it be possible to take an education loan against the property? Please tell me about other securities also.
Abhishek Mathur, Bhopal
The best education loans are currently available from public sector banks. If your existing home loan is from a public sector bank, you can approach them for this loan also. In case the existing home loan is from another bank, you should approach a public sector bank to take over the existing home loan (you will have to pay a pre payment charge to your existing lender) as well as provide you with an education loan.
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Since the price of the house is likely to have risen over the years, an education loan besides the existing home loan is very much possible. Of course, it is assumed that the repayment track record on the existing home loan has been flawless; else the loan will not be available. You can also consider pledging other securities like mutual fund units, shares, life insurance policies, NSC’s and jewellery for the loan.
