If you are planning to finance your studies in the USA through a secured education loan, the bank may ask you to pledge an asset as collateral. The type of collateral accepted depends on the bank, loan amount, property value, and the lender's internal policies. Banks commonly consider assets such as residential or commercial property and fixed deposits, while some lenders may accept other tangible or liquid securities. Understanding these options can help you determine whether a secured loan is suitable for your study-abroad plans. What Is Collateral in an Education Loan? Collateral is an asset pledged to a lender as security against a loan. It reduces the lender's risk and may help students qualify for higher loan amounts or different loan terms. The asset is not transferred to the bank permanently. However, the lender creates a charge or lien over it until the education loan is repaid according to the agreed terms. For example, SBI's Global Ed-Vantage scheme states that...