what is collateral security for education loan? Collateral or collateral security or security for education means what surety or security you are going to offer to the lender, who is going to provide your education loan. Entity which gives you education loan wants some kind of assurance that you pay back that education loan back to the lender. Any property which you own like a flag or a bungalow or non agricultural land or a fix deposits such kind of things can be offered as a collateral for education. The lender usually gets the valuation of the collateral property done Credila offer loans even if the collateral property valuation is a little bit lower than the education loan that you require.