Which Bank Approve Education Loan On Agricultural Land?

27.12.2022 Grady A. Lowry 0 Comments

Union Bank of India Union Kisan Shiksha Suvidha (UKSS) Education Loan for Students from Agrarian Family – This Union Bank of India study loan helps students from agricultural families finance and pursue their graduate or postgraduate degrees from recognised educational institutions in India or abroad.

The loan is meant to help students who have secured admission into a higher education course in a recognised institution in India or abroad offering medical, engineering or management programmes This Union Bank of India Education Loan is disbursed as a series of payments over the required number of years and not as a lump sumThe loan can be taken for all expenses directly related to the course including for fees, purchase of books, laptops, hostel fees, lab fees, examination fees, etc.The loan can be taken in later years of the course also if not taken at the start of the course and no other education loan has been taken from other banks or financial institutions

Loan Amount

T he maximum loan amount for studying in India is Rs.15 lakh and for studying abroad is Rs.30 lakh The minimum loan has to be over Rs.7.5 lakh

Interest

Details of interest rates are not yet available on the Union Bank website as of November 2020UBI mentions that if interest is paid regularly during the course and moratorium period, then the student becomes eligible for a rebate on the interest rate

Repayment

The repayment period for this loan is 15 yearsThe loan amount for each year is repayable in 12 equated monthly instalments, with the first instalment becoming due after the end of moratorium periodThe moratorium period for this loan is course duration + 12 months

Security Needed

The borrowers will have to mortgage their agricultural land as collateral security in states where mortgaging agricultural land for purposes other than agricultural activities is allowedThe agricultural land should be properly demarcated with boundaries and easily accessible or marketableIf the agricultural property is already mortgaged for a loan with UBI, then the value of the property in excess of 133% of the total outstanding of the existing loan will be considered as eligible collateral for this education loan scheme

Eligibility

The applicant must be an Indian nationalMust belong to the agrarian community with over 50% of the family income coming from agriculture or allied activityThe student must have secured at least 60% marks at the Class 12, HSC or equivalent level

Eligible Courses

Medical, engineering or management courses leading to graduate, postgraduate degree The institutions must be accredited by NAAC or NBA, recognised as Institutions of National Importance or be Central Funded Technical Institutions Medical courses should have been approved by the National Medical Commission (NMC) (formerly known as Medical Council of India)

Borrower Contribution to Total Cost (Margin Money)

Study in India: Students studying in India need to pay 5% of total course expenses as margin money Study Abroad: Students studying overseas need to pay 15% of total course expenses as margin money

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs.20 lakh in which case the borrower has to provide margin money of Rs.1 lakh for studying in India (5% of Rs.20 lakh) or Rs.3 lakh for studying abroad (15% of Rs.20 lakh) while UBI offers the rest. Processing and Other Charges

Details of processing charges are not available

Uses of the Loan

Admission acceptance feeTuition fee payable to college, school or universityHostel or mess chargesExamination, library and laboratory feesAny caution deposit, building fund or refundable deposit required by the institutionCost of books, equipment, instruments and uniformsReasonable cost of a computer or laptop, if needed for the courseCost of study tours, project work, thesis, etc.Travel expenses or passage money for foreign studiesInsurance premium for the student borrowerAny other expenses required to complete the course

Other Features to Know

Parent(s) of the student are compulsorily required to be co-applicants. Married students can have their spouse or parents-in-law also as co-applicantsThe student’s life insurance cover equivalent to the loan amount is mandatory for this loan The bank may ask for the student’s progress report to be submitted with the bank at regular intervals The loan is disbursed directly to the school, bookseller or publisher, computer seller, and so on and not to the applicant(s) The applicant must pay applicable margin money upfront for each disbursement

Documents Needed

Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and familyA declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banksTwo Passport Size Photographs of student, applicant and/or guarantorPhotocopy of PAN Card of the student that needs to be submitted at the time of application or during the course periodPersonal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar CardResidential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or PassportAdmission Letter, Course Details and Prospectus as proof of admissionFee Details with Demand of Fee by the InstitutionAll Proofs of Past Academic Record including Mark Sheets and CertificatesFor the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are requiredFor studying abroad, a self-attested copy of the passport is also required along with a self-attested form issued by the institute for visa purposes

Reference Facts:

Union Bank of India Website: www.unionbankofindia.co.in and www.unionbankonline.co.in (net banking) Headquarters: Mumbai, Maharashtra Call Centre Toll-Free Number: 1800 2222 44, 1800 208 2244

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Contents

1 Can I get education loan on agricultural land in India?
2 Which bank is best for agriculture land loan?
3 Does Bank gives loan to buy agricultural land in India?
4 Can I get education loan without collateral?
5 Can I use agricultural land for education loan?
6 Can we use agriculture land for education loan?
- 6.1 What is agriculture loan in HDFC Bank?
- 6.2 Which Bank provides loan against land?
7 Which loan is best for farmers?
8 Can a farmer get education loan?
- 8.1 Does SBI accept agricultural land as collateral for education loan?
9 Can I get education loan on land?
10 On what type of property can we get education loan?
- - 10.0.1 Do banks give loans to farmers?
11 Can I get education loan on agricultural land in SBI?

Can I get education loan on agricultural land in India?

UNION KISAN SHIKSHA SUVIDHA (UKSS) – STUDENTS BELONGING TO AGRARIAN FAMILY

PURPOSE

To the meritorious students to pursue Medical / Engineering / Management courses leading to graduate / post graduate education.

STUDENT ELIGIBILITY

Should be an Indian national. Belong to farming community with Primary source of income (above 50% of total income) should be from agriculture allied activity. Secured at least 60% marks at higher secondary level. No restriction with regard to the minimum and maximum age The parent(s) of the student has to compulsorily join in as co-applicant. In case of a married person, co-applicant can be spouse/parent(s)/parent(s)-in-law.

ELIGIBLE COURSES**

Medical / Engineering / Management courses leading to graduate / post graduate education only from NAAC accredited institutions or accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions. Medical courses should have been approved by Medical Council of India (MCI).

LOAN IN SUBSEQUENT YEARS OF COURSE

Educational loans can also be considered for eligible students in case the student approach the bank in the subsequent years of the course provided the student has not availed loan for initial years from any other bank / FI.

QUANTUM

Need based finance to meet the expenses worked out will be considered taking into account margins norms. The minimum quantum of loan under the Scheme should be above ₹7.50 lakh. The maximum quantum of loan under the Scheme will be Rs.15.00 lakh for inland studies & Rs.30.00 lakh for abroad studies.

MARGIN

Study in India – 5% Study Abroad – 15%

EXPENSES CONSIDERED

Tuition fee payable to college/ school/ university Hostel / mess charges Examination/ Library/ Laboratory fee Insurance premium for the student borrower Purchase of books/ equipment’s/ instruments/ uniforms Purchase of computer/laptop at reasonable cost, if required for completion of the course Travel expenses/ passage money for studies abroad Any other expense required to complete the course – like study tours, project work, thesis, etc.

REPAYMENT TENURE

The maximum repayment tenure will be 15 years (after course & moratorium period). The accrued interest during the moratorium period (if not serviced) will be added to the principal amount while calculating Equated Monthly Installments (EMI) for repayment.

RATE OF INTEREST

to know our latest interest rates If interest is regularly serviced during the course and moratorium period, i.e. prior to the commencement of repayment, then the student is eligible for interest rebate**.

SECURITY

Mortgage of Agricultural land as collateral security subject to following conditions:

Agricultural properties will be accepted as Collateral Security for Education loans, only in States where it is permitted to mortgage Agricultural Land for purpose other than Agricultural Activities. Agricultural Land accepted as collateral security should be properly demarcated with boundaries and easily accessible/marketable.

INSURANCE

Life insurance of the student is mandatory to the tune of the loan amount.

You might be interested: What To Take In Tiffin For School?

*Conditions Apply** **Contact our nearest Branch for more details** : UNION KISAN SHIKSHA SUVIDHA (UKSS) – STUDENTS BELONGING TO AGRARIAN FAMILY
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Which bank is best for agriculture land loan?

1. State Bank of India (SBI) – State Bank of India (SBI) is the market leader when it comes to agriculture-related financing. It has a wide network of branches spread across the country and offers financing facility to nearly 1.01 crore farmers. SBI offers a whole range of services to facilitate agriculture and allied activities.

Low-interest rates No intermediaries No hidden cost Immediate loan sanction Easy disbursement

Agriculture loans offered by SBI cover a wide range of agricultural activities. The bank offers finance for crop production via ACC/KCC (Kisan Credit Card). It includes support for crop production expenses, post-harvest costs, any emergencies etc. The Kisan Credit Card (KCC) is offered as an electronic Rupay Card.
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Does Bank gives loan to buy agricultural land in India?

Purchase of Land for Agri purpose

Purpose	The scheme aims at providing term loan to small/marginal farmers including share croppers /tenant cultivators to purchase agricultural land as well as fallow and waste land production /to develop and cultivate,
Eligibility	Small & Marginal Farmers who own a maximum of 5 acres of non-irrigated land or 2.50 acres of irrigated land including the land proposed to be purchased. Share croppers/tenant Farmers cultivating up to 2.50 acres of irrigated land or 5 acres of un-irrigated land including the land proposed to be purchased. Agri. Entrepreneurs who does not own agricultural land but have agricultural background are also eligible to avail loan for purchase of agricultural land, provided the respective state laws permit, non-agriculturist to purchase agricultural land. Farmers should remain under the category of small farmer (5 acres of non-irrigated land or 2.50 acres of irrigated land) even after purchasing the proposed land.
Quantum of Loan	The quantum of loan will depend upon valuation as assessed by the Branch / valuer guidance value / Circle rate fixed by the State or the registration value whichever is lower plus value of stamp duty, registration charges for sale/ mortgage deed. Maximum amount Rs 10.00 lacs.
Margin	The margin shall be minimum of 20%.
Security	As land being financed by the bank is a primary security, mortgage of land proposed to be purchased has to be done irrespective of quantum of loan. Also Mortgage of land presently owned, if any, as collateral security. The loan amount should not exceed the value of present land + value of the proposed land to be purchased. Hypothecation of crops grown from time to time on the land.
Repayment Period	The loan is to be repaid in maximum 10 years in half yearly / yearly installments including a maximum moratorium period of 24 months.
Forms & Documents	Appropriate DPN note, Deed of Guarantee, Letter of continuity,, Hypothecation agreement, Declaration/undertaking for Agriculture advance, Mortgage deed,Letter of general lien and setoff, Undertaking from borrower/Guarantor for disclosure to CIBIL, and any other document stipulated in sanction

ul> Rate of Interest – Please to know our latest interest rates Conditions apply. For more details please contact our nearest branch

: Purchase of Land for Agri purpose
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Can I get education loan without collateral?

Both public and private banks give education loan without collateral. The difference is the loan amount. Public banks give maximum of INR 7.5L while Private banks can lend up-to INR 40 Lakhs. Also there is an option to go with NBFCs which works same as private bank.
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Can I use agricultural land for education loan?

Agricultural Land as Collateral – The answer to the above question, in a nutshell, would be yes. You can definitely use agricultural land as collateral for availing an education loan, The prime aspect that matters for in considering an asset as collateral is the value of the asset compared to the education loan amount.

If the value of the asset is at par with or exceeds the amount of the loan, then you can use it as collateral.
However, there are a few drawbacks to using agricultural land as collateral.
One of the prime drawbacks is that if the education loan repayment is not carried out in a timely fashion then you your agricultural land may be seized or auctioned.

This could be devastating for families that rely on the land as their largest source of income. Additionally, the reason most people prefer to mortgage other assets is that their value is higher than the agricultural land with respect to the area and utility of the land.
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Can we use agriculture land for education loan?

Can I get education loan on agricultural land? – Theoretically, yes is the answer to this query. But if we look a bit closer, we see that this is not actually feasible. The RBI has recommended that banks grant education loans to farmers and their children, but in practise things are very different.

All public banks, commercial banks, and NBFCs have said that agricultural land is not acceptable as collateral for an education loan when we examine the terms and conditions for authorising a secured education loan. One explanation for this could be that agricultural property cannot be utilised as collateral in the event that the student loan turns into a non-performing asset.

The fundamental purpose of collateral is to ensure that the funds are repaid in the event of default. Since agricultural property would not be used as collateral, the purpose of requesting it would be defeated. Collateral is meant to be a way of recouping loan funds in the event that the borrower defaults on the loan.
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What is agriculture loan in HDFC Bank?

Agricultural Lending Get affordable financing for your agricultural business, from farming to processing. Benefit from our expanding rural network for access to need-based loans at your doorstep. Receive support for agricultural activities including farming of staple and cash crops, horticulture, plantations, poultry, animal husbandry, dairying, seeds and warehousing.
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Which Bank provides loan against land?

SBI Bank Loan Against Property – Key Features:

Offered to customers with residential and commercial properties.
The minimum loan amount that can be availed is Rs.10 lakh and the maximum loan amount is Rs.7.5 crore.
Processing fee is set at 1% of the loan amount plus service tax, subject to a maximum of Rs.50,000 plus service tax.
To be eligible for the SBI Loan Against Property, the applicant should have a minimum monthly income of Rs.25,000 or Rs.3 lakh p.a.
No prepayment penalties with the SBI Loan Against Property.


Bank/Lender	Processing Fee	Pre-closure Charges	Age Criteria
SBI	1%	Nil	The loan should be liquidated before the eldest borrower reaches 70 years of age.

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Which loan is best for farmers?

On The Basis of Loan Tenure –

Crop Loan/ Kisan Credit Card (Retail Agri Loan): Kisan Credit Card/ Kisan Card is an ideal agriculture loan option to meet short-term credit requirements, such as expenses resulting from the cultivation of crops, post-harvest activities, maintenance of farm equipment, etc. The card is generally available in the form of an electronic RuPay Card, which the farmers can use to draw money from ATMs to make the required purchase. Thus, it provides convenient credit to meet your daily farm requirements.

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Is SBI giving land purchase loan?

SBI offers eligible customers plot loan with interest rates ranging from 8.35% p.a. to 8.75% p.a.The maximum loan tenure for the SBI plot loan is 10 years. SBI land loan offers a maximum loan amount of Rs.15 crore.
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Is agricultural loan available in SBI?

State Bank of India (SBI) offers a range of short and long-term agricultural loans that can be used to cover expenses related to various agricultural needs. Common uses of SBI Agricultural loan include buying and maintaining/upgrading farm machinery, managing crop production and various post-harvest activities.
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How much loan can I get from Bank of agriculture?

Direct Credit Product – This facility has been developed by the BOA, to finance agricultural production and other agro-allied activities. The facility is available to both individuals and corporate organizations. While individuals can access up to N5 million, corporate organizations may borrow up to N50 million.
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Which bank approves education loans easily?

#4. IDBI Bank Education Loan – Loan Amount Offered: Up to Rs.20 Lakhs for studies in India and Rs.30 Lakhs for foreign education If you are planning to get an education loan for AICTE, UGC, ICMR and government-approved courses, job-oriented courses and technical diploma courses then you should check IDBI Bank’s education loan.

Education loan scheme	Rate of Interest
Education loan for non-vocational courses	Up to Rs.7.5 Lakhs – 8.40%Above Rs.7.5 Lakhs – 8.90%
Education loan for vocational / skill development courses	For all amounts – 8.80%
Education loan for premier education institutes (including ISB)	For all amounts – 6.90%

Pros:

Lower interest rate for loans for premier institutes.NIL processing fees for study in India.NIL foreclosure charges

Cons:

1.33 times tangible collateral needed for a loan amount of over 7.5 lakhsSlow loan processing.

Go to IDBI bank for an education loan if you have secured admission in any of the premier institutes and have adequate (1.33 times) collateral security for easy approval.
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Which bank is better for education loan?

List of Educational Loans – Leverage Edu has formulated a list of best education loans in India that can help you reach your dream university:

Bank	Student Loan Interest for Indian Universities	Student Loan Interest to Study Abroad
Axis Bank	13.70%	13.70%
Bank of Baroda	7.70%	8.35%
Bank of India	9.05%	9.05%
Canara Bank	8.50%	8.50%
Central Bank of India	8.50%	8.50%
Federal Bank	10.05%	10.05%
IDBI Bank	6.90%	8.40%
Indian Overseas Bank	10.65%	10.65%
PNB	7.05%	10.65%
SBI	7.00%	8.80%
UCO Bank	9.30%	9.30%
Union Bank of India	8.40%	8.05%

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Can I get education loan on agricultural land in SBI?

Can I take an education loan on agricultural land? – Well, theoretically the answer to this question is, Yes. But on digging a little deeper we realize that this is not possible practically. Even though the RBI has suggested that banks sanction education loans to farmers and their children, the reality is quite different.

When we look at the terms and conditions for sanctioning a secured education loan, we realize that all public banks, private banks, and NBFCs have mentioned that agricultural land is not accepted as collateral for an education loan.
The reasons for this are not very clear, one possible reason for this could be the fact that agricultural land cannot be used to raise security in case the education loan becomes a Non-Performing Asset,

The very purpose of collateral is to be a means of recovering the loan money in case the borrower defaults on the loan and this would not be the case with agricultural land, thus beating the very purpose of asking for collateral.
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Can a farmer get education loan?

Loan Amount

T he maximum loan amount for studying in India is Rs.15 lakh and for studying abroad is Rs.30 lakh The minimum loan has to be over Rs.7.5 lakh

Interest

Repayment

Security Needed

Eligibility

Eligible Courses

Borrower Contribution to Total Cost (Margin Money)

Study in India: Students studying in India need to pay 5% of total course expenses as margin money Study Abroad: Students studying overseas need to pay 15% of total course expenses as margin money

Details of processing charges are not available

Uses of the Loan

Other Features to Know

Documents Needed

Reference Facts:

Union Bank of India Website: www.unionbankofindia.co.in and www.unionbankonline.co.in (net banking) Headquarters: Mumbai, Maharashtra Call Centre Toll-Free Number: 1800 2222 44, 1800 208 2244

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Does SBI accept agricultural land as collateral for education loan?

You can get an education loan with various types of collaterals, including agriculture land. However, you only need a collateral for a loan amount greater than ₹7 lac. For any loan amount less than that, you do not need a collateral.
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Can I get education loan on land?

Yes, similar to house, you can get education loan on land.
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On what type of property can we get education loan?

Updated on: 27 Sep 2022 Worried about arranging funds for your education? With a plethora of study loan options available in the market, you must not worry much! If you have a property to put as security, you have can get an education loan at a lower interest rate for a longer loan tenure.

A loan that can be taken by pledging property as a security is called a loan against property. A loan against property (LAP) is a secured loan offered against a property mortgaged with the bank. This property can be a house, an owned land, or any other commercial premises. The loan amount sanctioned under the loan against property is determined based on the market value of the property, which remains as collateral with the lender until the loan amount is repaid.

Let’s walk through the features and process of education loan against property
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Do banks give loans to farmers?

State Bank of India Agricultural Loans – State Bank of India is a leader in financing projects in the agriculture sector. They have helped millions of farmer across the country through their 16,000 plus branches. They offer a variety of products like Kisan Credit Card, gold loan for crop production and multi-purpose gold loan for agriculture activities.

SBI also offers agriculture loans for mechanisation of farms.
The funds from these loans can be used to purchase combine harvesters, tractors and install drip irrigation.
Moreover, loans for activities related to dairy, poultry or fisheries can also be availed.
Credit can be taken against warehouse receipts.

The bank also offers Debt Swapping Scheme, wherein financial aid is offered to farmers to help them clear their dues that have been produced by taking loans from non-institutional lenders like loan sharks, money lenders, et cetera. The main goal of this scheme is to help farmers become debt free and clear their loans coupled with atrocious interest rates.

Lastly, one can look to SBI for financial help if they are looking to boost their agricultural marketing, establish agribusiness and agri clinic centres or purchase land. State Bank of India offers these loans and services through their parent branches, as well as their seven associate subsidiaries – State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, State Bank of Indore and State Bank of Saurashtra.

If you are looking to avail any of these agricultural loans offered by the State Bank of India, then all you have to do is visit your nearest SBI branch for more details and application.
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Can I get education loan on agricultural land in SBI?

When we look at the terms and conditions for sanctioning a secured education loan, we realize that all public banks, private banks, and NBFCs have mentioned that agricultural land is not accepted as collateral for an education loan. The reasons for this are not very clear, one possible reason for this could be the fact that agricultural land cannot be used to raise security in case the education loan becomes a Non-Performing Asset,

Can a farmer get education loan?

Loan Amount

T he maximum loan amount for studying in India is Rs.15 lakh and for studying abroad is Rs.30 lakh The minimum loan has to be over Rs.7.5 lakh

Interest

Repayment

Security Needed

Eligibility

Eligible Courses

Borrower Contribution to Total Cost (Margin Money)

Study in India: Students studying in India need to pay 5% of total course expenses as margin money Study Abroad: Students studying overseas need to pay 15% of total course expenses as margin money

Details of processing charges are not available

Uses of the Loan

Other Features to Know

Documents Needed

Reference Facts:

Union Bank of India Website: www.unionbankofindia.co.in and www.unionbankonline.co.in (net banking) Headquarters: Mumbai, Maharashtra Call Centre Toll-Free Number: 1800 2222 44, 1800 208 2244

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Does SBI accept agricultural land as collateral for education loan?

Can I take education loan against property?

Education Loan on Property – Study Loan Online at Low Interest Rates An education loan on property does not implement any restrictions on how borrowers decide to use the sanctioned loan amount. This allows borrowers to meet both direct and ancillary expenses related to pursuing higher education, whether in the country or abroad.

Furthermore, the high education loan amount helps them finance higher education costs in renowned colleges or universities across the world.
For instance, they can account for expenses directly related to the pursuance of higher education, like admission costs, tuition fees, exam fees, lab charges, etc.

The sanctioned amount can also easily account for bills related to food, accommodation, and other living expenses if need be. *Conditions apply : Education Loan on Property – Study Loan Online at Low Interest Rates
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Grady A. Lowry