POSTED BY April 14, 2011 5:29 pm COMMENTS (2)ON
My brother has got admission an MBA institute . Now I am have to apply an eduation loan , but the problem is I am self-employed now and dont have income proofs like a salaried person has . However I have steady cash flows in my account each month (but not guaranteed)
Also my father is in UP and we have real estate property there, Can that be used as collateral ? Will it be smooth and acceptable ?
Can some one enlighten me on this and whats the best I can do ?
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2 replies on this article “Education loan for a self-employed”
Dear Manish, In my view your father & you should be the co borrower whereas your father ‘ll provide the house as collateral against the edu. loan & your income proof (being self employed has some limitations here) ‘ll act to support the repaying capacity.
From your query it’s not clear that you do have ITRs or not for yourself. In case you are filing your ITRs – last 3 years ITRs may do the trick. Not only check with Frontline Private or PSU banks but do check with some old fashioned PSU banks as well as Co-operative banks also.
As the property is in UP, & if you opt to use it as collateral, the Banks in Pune may refuse to provide loan as the verification of the property ‘ll be a difficult task.
Another workable solution – From your family members – Any uncle or Aunt who are in salaried job & do have ITRs etc. ask them to become borrower for your brother’s edu. loan in return of that loan, as a guarantee, your father may mortgage the UP house under his/her name, just like mortgaging a house while taking a home loan.
I have ITR from last 3 yrs actually 🙂 . So lets see if helps !