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Jammu and Kashmir Education Loan for Abroad

Last Modified : September 03, 2018

Jammu and Kashmir (J&K) bank offers financial assistance to students pursuing higher studies from reputed or recognized institutes in India or abroad.  

The bank offers various interest subsidy schemes such as CSIS, Skill Loan Scheme, and Padho Pardesh Scheme along with Education Loan for India and Abroad.

Why J&K Bank?

0.5% concession to girl students, 1% concession if interest is serviced during moratorium priod, zero margin upto INR 4 Lacs and Zero processing fee are some key factors that attract borrowers towards J&K Bank Education Loan.

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
  • Recognized/Reputed Institute. You must have secured admission to any recognized institution.
  • 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.

J&K Bank Education Loan

The bank extends this variant of education loan to offer financial assistance for students pursuing higher education from recognized institutes overseas.

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 foreign 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: 15%
Maximum Loan LimitINR 20 Lacs
SecurityUpto INR 4 Lacs: Nil
From 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

  • Graduate/post graduate courses conducted by reputed institutes overseas
  • Professional/technical/job-oriented courses
  • Post-graduate courses such as MCA, MBA, MS, etc.
  • Courses offered by CIMA (London) or CPA (USA)
  • Degree/diploma courses like aeronautical, pilot training or shipping conducted by recognized institute for purpose of employment in India/abroad.

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.

Interest Subsidy Scheme of Students pursuing Higher Studies Abroad

  • Padho Pardesh - Education loan scheme for overseas studies to minority community students

Padho Pardesh Scheme was launched to provide financial assistance to minority community under new 15 point programme initiative of Prime Minister. This scheme aims at promoting academic excellence in students belonging to economically weaker sections. The scheme provides 100% interest subsidy to students belonging to minority community

How to Avail J&K Bank ‘Padho Pardesh’ Subsidy Scheme?

Students can yield benefits of the scheme by following the below mentioned procedure:

  • Inform their lending banks about the interest subsidy scheme of Padho Pardesh by Ministry of Minority Affairs.
  • Submit the proof of their eligibility for the particular scheme
  • If eligible, the lending bank will fill in information into portal of Padho Pardesh.
  • The portal remains open for the period of two month in every quarter.

Courses covered under Padho Pardesh Scheme

Courses that are covered by Government of India under this scheme are as follows:

Arts/ Humanities/ Social SciencesCommerce
Pure ScienceEngineering
Bio- technology/ Genetic EngineeringIndustrial Environmental Engineering
Nano- technologyMarine Engineering
Petro-chemical EngineeringPlastic Technology
Cryogenic EngineeringMechatronics
Automation Robotics including artificial intelligenceLaser Technology
Low Temperature Thermal DynamicsArt Restoration Technology
OptometryDock and Harbour Engineering
Imaging System TechnologyComposite Materials Engineering including Decentralized power
Packaging Engineering/ TechnologyNuclear Engineering
Information Technology including Computer Engineering, Software, Software Quality assurance, etcIndustrial Safety Engineering
MedicalAgriculture & Agro Technology
AgronomyFloriculture & Landscaping
Forestry & Natural ResourcesFood Sciences & Technology
Plant PathologyHorticulture
Energy StudiesFarm Power & Machinery
Veterinary SciencesSoils & Water Management
Plant Breeding & GeneticsSmall- scale Rural Technology
Ocean & Atmospheric SciencesMBA/MCA

*The courses might change as per discretion of Ministry


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

Answer: There are other multiple schemes offered by J&K Bank apart from the basic education loans. These are:

  • CSIS
  • 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 for the applicant applying for education loan from J&K Bank. He/ she should only meet the other stated eligibility criteria’s.

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 a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

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


  • 0.50% concession is given to girl students
  • 1% concession if interest is serviced during moratorium period

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: Will my travel expense will be covered if I take loan from J&K Bank?

Answer: Yes, travel expenses are covered under this loan

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 does not provides any additional concession to students who have secured admission in top rated institutes

Q: What is the processing fee or prepayment charges?

Answer: The education loan offered by J&K Bank does not carry any prepayment 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: 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: 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: The interest rate is different for different loan offered. Refer the tables below:

Answer: For J&K Bank Education Loan:

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:

  • Padho Pardesh Scheme for minority sector students who wish to pursue their studies abroad.
  • Interest Subsidy scheme for economically weaker sections and to promote education amongst them

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: If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

Answer: No, the interest subsidy scheme is available only for studies applying for studies in India.

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: Can I repay my loan in foreign currency even if my bank is in India?

Answer: Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

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: There is no additional benefit mentioned by J&K Bank. Students may contact the official website for 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: Are NRIs eligible for the education loan?

Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

Q: Is Visa a necessary document for studying abroad?

Answer: Visa is needed as a document proof but it is not a sole requirement.

Q: What all procedures do one have to go through while applying for abroad?

Answer: A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

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