I am in the initial phase of applying for a secured loan. Can I pledge PPF as collateral or not?? I do not own a property or any other asset. What else can be pledged to cover the loan amount?
Banks/NBFCs do not accept PPF as a collateral because it is not possible to attach the PPF balance in case of a default.
The most widely accepted collateral for education loan are property (including land based on certain compliances) and fixed deposits. Government securities, NSCs, surrender value of insurance policies are also accepted as valid collateral. Typically lenders do not accept gold as a collateral, though one could explore taking a gold loan depending on the requirement. Lastly shares/securities are also typically not accepted as a valid collateral in most lenders, and would require a significant haircut even where accepted.