Can gold be used as collateral for an education loan of 40 lakhs (preferably from SBI)? How much would it have to be valued at? Also, would the gold have to be 916?
Would schemes like Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) also require collateral? What is the maximum amount that can be availed through this scheme?
Yes, gold can be used as collateral for gold loans but not for abroad education loans.
You can take money from banks as a gold loan and then you can use it for education purposes.
SBI provides gold loans up to 50 lakhs depending upon the value of your gold.
Also, you can look for alternative collateral such as immovable assets, intangible assets and Third-party secured education loans.
For more details on collateral please read this blog
As per official guidelines of Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Education Loans for Overseas for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs), there is no such requirement for collateral.
The following criteria are applicable:
•For OBC candidates, total income from all sources of the employed candidate or his/her parents/guardians in the case of the unemployed candidate shall not exceed the present Creamy Layer criteria.
•For EBC candidates, the total income from all sources of the employed candidate or his/her parents/guardians in the case of the unemployed candidate shall not exceed Rs.2.50 lakh per annum.
•Under this Scheme, an Income certificate is produced by the student for availing Educational Loan viz. ITR/Form 16/Audited Accounts/Income certificate issued by the authority of State Government/UT Administration is acceptable for determining the Income ceiling.
For a student, the eligible loan component shall be the actual loan taken subject to a maximum of Rs. 20.00 lakh for purpose of an Interest subsidy claim.
For more information kindly go through this blog we have covered all the important points related to this scheme.