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Jammu and Kashmir Bank Education Loan

Last Modified : September 03, 2018

Jammu and Kashmir Bank offers education loan for students opting to study graduate or post graduate courses from recognized institutes in India or overseas.

The bank offers additional benefits along with Education Loan for India and Abroad for students who secure admission in top premier universities/ institutes.

Why J&K Bank?

No margin and collateral security upto INR 4 Lacs are some of the many benefits offered by J&K bank. J&K Bank Education Loan for Abroad is offered at INR 20 Lacs along with Padho Pardesh scheme for EWS.

Are you eligible for J&K Bank Education Loan?

  • Indian National. Borrower and Co-borrower/s must be an Indian National
  • 10+2. You must have cleared HSC/10+2 from a recognized board or institute
  • Co-signer. A co-signer to act as a co-borrower while applying for loan is mandatory

How can you apply for J&K Bank Education Loan?

Students opting to avail education loan from J&K Bank  can either go through the official website or through Vidyalakshmi Portal. Applicants can also visit the nearest branch and fill the form.

For Online:

  • Visit the official website
  • Click on Apply Now
  • Fill up the form with all the necessary details
  • Submit the Form
  • Take the print out of application form
  • After that visit the nearby United Bank of India for the further proceedings

For Offline

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide you with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

1. J&K Bank Education Loan

Jammu and Kashmir Bank offers this education loan variant to meet financial needs of students who aspire to study in India or abroad.

What makes you eligible for J&K Bank Education Loan?

  • Indian National
  • Higher education course
  • 10+2 qualified with minimum aggregate marks
  • Entrance based/merit based admission
  • Admission to recognized/reputed institute or university.

Present Rate of Interest

Upto INR 5 Lacs12.25%
From INR 5 to 10 Lacs13.25%
Above INR 10 Lacs14.00%

Quick facts about J&K Bank Education Loan

MarginUp to INR 4 Lacs: Nil
Above INR 4 Lacs: 5%
Maximum Loan LimitINR 10 Lacs
SecurityUpto INR 4 Lacs: Nil
INR 4 to 7.5 Lacs: Third party guarantee
Above INR 7.5 Lacs: Collateral security equal to loan amount
Future income assignment in favour of bank
Moratorium PeriodCourse Period plus one year, or six months after getting a job
Repayment (Maximum)Repayment of the loan can be done after the moratorium period by mode of EMI
Maximum repayment loan: 15 years
Prepayment ChargesNil, if paid during the repayment period

Additional Facts about J&K Bank Education Loan

  • 0.50% concession to girl students
  • 1% concession if interest is serviced during moratorium period
  • Zero margin upto INR 4 Lacs
  • No collateral security for loan amount upto INR 4 Lacs
  • Zero Processing Fee

Expenses Covered Under J&K Bank Education Loan

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee
  • Cost of books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)

Courses Covered under J&K Bank Education Loan

  • Postgraduate degree (Masters or Ph.D.) /diploma courses conducted by renowned institutions/ universities recognized by UGC, Government, AICTE, AIBMS or ICMR.
  • Academic courses such as CA, CFA, and ICWAI.
  • Courses conducted by NIFT, IITs, IIMs, XLRI, IISc, and NID.
  • Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping (only if it is pursued in India).
  • Courses for noble cause such as teaching training (like B.Ed.), nursing courses, and from other training institutions approved by Central Government or by State Government
  • Reputed foreign universities offering approved courses offered in India.

Documents Required for J&K Bank Education Loan

  • Admission letter with all essential details
  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph of applicant, co-applicant, and guarantor.
  • Copies of qualifying courses.
  • Income proof and/or copy of income tax return file of co-applicant, parents, and guarantor (if any).
  • Details of collateral security along with government approved valuation certificate (if any)
  • Bank account statement of the applicant.

2. J&K Bank Education Loan for B.Ed./M.Ed. courses

This variant of loan is exclusively for students pursuing B.Ed. or M.Ed. courses from a recognized or reputed institute.

What makes you eligible for J&K Education Loan for B.Ed./M.Ed. courses?

  • Indian National
  • 10+2 pass
  • Graduate in any discipline from recognized institute
  • Admission to B.Ed. or M.Ed. course
  • Loan application should be forwarded by college/institute principle

Quick Facts aboutJ&K Education Loan for B.Ed./M.Ed. courses

Margin10%
Maximum Loan LimitINR 25,000
SecurityThird party guarantee
Moratorium PeriodCourse Period plus one year, or six months after getting a job
Repayment (Maximum)12 equal monthly instalments
Processing Charges0.05%
Prepayment ChargesNil, if paid during the repayment period

Expenses Covered J&K Education Loan for B.Ed./M.Ed. courses

  • Admission fee
  • Tuition fee
  • Examination fee
  • Hostel fee
  • Library/ Lab fee

Documents required J&K Education Loan for B.Ed./M.Ed. courses

  • Admission proof
  • Mark sheets of last qualifying examinations
  • Residence proof
  • Income proof

3. Skill Loan Scheme

The facility of skill loan scheme is opted by J&K bank to provide financial assistance to students intending to pursue skill development courses.

What makes you eligible for Skill Loan Scheme?

  • Indian National
  • Admission to a course conducted by Government Organization or supported by National Skill Development Corporation, State Skills Missions or State Skills Corporations.
  • Degree or diploma courses issued by a government organization
  • Qualification must be in accordance to the enrolling institute

Present Rate of Interest

Rate of Interest on all amount is MCLR + 1.5%

Margin5%
Maximum Loan LimitINR 1,50,000
SecurityNo collateral or security is required
Moratorium PeriodCourse duration upto 1 year: Course period+6 months Course duration above 1 year: Course period+12 months
Repayment (Maximum)Loan upto 50,000: 3 years Loan between 50,000 to 1 Lac: 5 years Loan above 1 Lac: 7 years
Prepayment ChargesNil

FAQs

Q: What schemes does J&K Bank considers for its education loans?

Answer: There are multiple other schemes offered by J&K Bank apart from the basic education loans viz. J&K Bank Education Loan for India or abroad and J&K bank Education Loan for B.Ed./M.Ed. course. These are:

  • CSIS Scheme
  • Padho Pardesh
  • Skill Loan Scheme

Q: In whose name is the loan granted?

Answer: The loan is granted in the name of the student

Q: Is the loan contract executed only in student’s name?

Answer: No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

Q: What is the age limit for availing loan in J&K Bank?

Answer: There is no age restriction as stated by J&K Bank. Borrowers must fulfil other eligibility criteria mentioned.

Q: Are minors eligible to apply for J&K Bank Education Loan?

Answer: Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

Q: What does margin on any loan mean?

Answer: Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

Q: Should the student’s margin be paid upfront in the starting?

Answer: Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

Q: Where can I avail J&K Bank Education Loan?

Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

Q: Is there any provision to apply for loan online?

Answer: Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

Q: Can I view my loan statement online if I am an existing education loan borrower?

Answer: Yes, by creating a login on J&K Bank web portal, you can view all details related to education loan online.

Q: Is there any minimum aggregate marks to meet the eligibility criteria to avail J&K Bank education loan?

Answer: Yes, a student must have secured required marks in their last qualifying examination (10+2 or Graduation). Relaxation of 10% in the marks is given to SC/ ST students.

Q: What is the discount/ rebate offered by J&K Bank ?

Answer:

  • 0.50% concession is given to girl students

Q: What all is included in tangible collateral security?

Answer: Mostly J&K Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of J&K Bank . Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

Q: Can I place my family property as collateral?

Answer: Yes, but it will need consent of all family members involved.

Q: Is scholarship or assistantship included in the margin?

Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.

Q: What is Moratorium Period?

Answer: Course Period plus one year, or six months after getting a job

Q: What is tenure of an education loan?

Answer: Tenure of education loan provided by J&K Bank is maximum 15 years

Q: What does MCLR stands for?

Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

Q: What all expenses are covered under this course?

Answer: Expenses covered by J&K Bank education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.

Q: I have taken admission through management quota. Am I eligible?

Answer: This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.

Q: What do you mean by reputed or recognized institutes?

Answer: Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

Q: Are there any special benefits if I have secured admission to one of the top premier institutes?

Answer: J&K Bank asks for no collateral security for loan amount upto INR 10 Lacs.

Q: What is the processing fee or prepayment charges?

Answer: The education loan offered by J&K Bank does not carry any prepayment charges/ processing fee/ documentation charges.

Q: Will cost of my computer be covered under the loan sanctioned?

Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course. 

Q: Why is Pan Card necessary?

Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers

Q: Are diploma or certificate courses considered under J&K Bank education Loan (both for India and Abroad)?

Answer: Diploma courses are eligible under J&K Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

Q: Is a co-borrower necessary for loan?

Answer: Yes, it is mandatory to have a co-borrower to avail loan from J&K Bank. 

Q: Who can be my co-borrower?

Answer: Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

Q: What all documents are required from the co-borrower?

Answer: Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).

Q: How many guarantors do I need to borrow loan from J&K Bank?

Answer: You need at least 2 guarantors to avail loan from J&K Bank.

Q: What is the KYC requirement in education loan?

Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

Q: What are maximum term for repayment?

Answer: The maximum term for repayment is 15 Years

Q: How can I repay the loan?

Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

Q: What is EMI? How are they calculated?

Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below:

EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]

Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

Q: What are the charges for late EMI payment?

Answer: 24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

Q: Is the loan disbursed in name of individual applicant or to the institute/ university directly?

Answer: The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

Q: If I am unable to complete my course in given tenure, will my repayment term be extended?

Answer: It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details. 

Q: What is method of application of interest on education loan?

Answer: The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance. 

Q: If I am joining the course soon after current course, can I get an extension?

Answer: Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher

Q: What is interest rate of education loan?

Answer: Interest rate education loan scheme provided by J&K Bank are:

Upto INR 5 Lacs12.25%
From INR 5 to 10 Lacs13.25%
Above INR 10 Lacs14.00%

Q: What is interest subsidy on education loan?

Answer: J&K Bank offers:

  • CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
  • Padho Pardesh scheme for students who wish to pursue studies abroad
  • Skill Loan Scheme for students who wish to pursue courses to enhance their skills and attain better career opportunities.

Q: What documents do I need to submit to avail interest subsidy scheme?

Answer: The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower

Q: What is employment verification in an education loan?

Answer: The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

Q: Are there any tax benefits in education loans?

Answer: Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).

Q: Is it necessary to have bank account with the bank while availing loan from that particular bank?

Answer: It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

Q: Why do banks require insurance policy as security?

Answer: The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy.

Q: Are there any additional benefits on availing loan from J&K Bank?

Answer: J&K Bank provides no additional benefits. You can contact the bank for more information regarding the same.

Q: What is credit score? Is it important for education loan?

Answer: Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

Q: If a student have any query, where or whom to contact?

Answer: Student can reach out to the nearest branch in case of any query.

Customer Care Number: 0194-2481999