Can inherited property be used as collateral?

Education Loans
1

My parents have inherited properties (land/house). Can they be used as collateral for education loans for study abroad?

2

Hi,

Yes, you can use the inherited property if the property is in your name and you have all the documents related to the property.

3

What kind of documents will be required for that?

4

There are certain documents which you will require for a collateral loan using inherited property :

  1. Title Deed: Proof of ownership and a clear title of the property.
  2. Property Tax Receipts: Recent receipts confirming that all property taxes are paid.
  3. Encumbrance Certificate: Document showing the property is free from legal dues or mortgages.
  4. Property Valuation Report: Professional valuation of the property’s current market value.
  5. Legal Heir Certificate: Proof of legal inheritance by your parents.
  6. Identity Proof: Government-issued ID for your parents (passport, driver’s license, Aadhaar card).
  7. Address Proof: Recent utility bills, rental agreements, or other official documents showing your parents’ address.
  8. Income Proof: Recent salary slips, bank statements, or income tax returns of your parents.
  9. No Objection Certificate (NOC): From all legal heirs if the property is inherited and shared.
  10. Loan Application Form: Duly filled application form provided by the lending institution.

Also check with the specific lending institution for any additional documents they might require.

5

The issue is that my parents might not have all of these documents but the properties does belong to us and have been inherited. How to work around if this is the case?

6

Hello, in your case it seem a bit complicated for me to answer, so kindly share your contact details with me on chat and a dedicated loan counseller will be with you shortly to clear all your doubts. And do not worry, it is totally free of cost.

7

Alright, thankyou! I will contact gyandhan for it.

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