Is guarantors or collateral required?
Almost every bank requires a cosigner/guarantor for every loan. Parents or relatives typically act as cosigners or guarantors. A guarantor has the responsibility to repay the loan if the student defaults on the loan repayment. Typically, banks look at the employment details and financial details of the in relation to education loan amount. The usual security that banks accept are Non Agriculture Land, House, Property, Fixed Deposit Receipts, National Savings Certificates (NSCs), bonds, gold, etc.
