Does 100% secured loans require marginal value amount to be submitted?
It varies bank to bank as most of the Government banks or PSUs demand marginal value amount to be contributed by the borrower himself .Percentage of marginal amount again varies bank to bank.
Few private banks don’t need marginal amount even with a 100%secured education loan as they can finance 100% of the asset value or even more than that .
Some banks don’t offer full financing for higher education, especially for specific courses. For instance, a student may apply to a bank for a secured education loan of Rs. 1 crore if they have property valued at that amount to use as collateral. In exchange for the collateral, the bank could grant an education loan equivalent to 90% of the property’s worth. i.e., 90 lakhs rupees as opposed to one crore. Students are responsible for covering the remaining 10% of the margin money on their own.
The student must demonstrate that he or she has Rs. 10 lakh in their account at the time of the Rs. 90 lakhs disbursement in order for the lending institution to release the full sum of Rs. 90 lakhs.
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