Do all education loans require a third-party guarantee?
Answer
Answer
No. All education loans do not require a third-party guarantee.
Banks and non-banking finance companies (NBFCs) do not ask for any collateral or third-party guarantee for loan up to Rs 4 lakh. For loans above Rs 4 lakh up to Rs 7.5 lakh, a third-party guarantee is required.
Thus, a collateral is asked for loan exceeding Rs 7.5 lakh.