Jammu and Kashmir Bank
Education Loan

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.

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

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

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

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

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.

0.50% concession is given to girl students

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

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

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

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

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

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

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

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

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)

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

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

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

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

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.

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

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.

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).

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

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

The maximum term for repayment is 15 Years

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

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.

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

The loan is disbursed directly to the institute/ university thatWhat is method of application of interest on education loan? you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

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.

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.

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

The interest rate is different for different loan offered. Refer the tables below:

For J&K Bank Education Loan:

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

J&K Bank offers:

• CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
• PadhoPardesh 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.

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

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.

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).

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.

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.

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.

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

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.

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

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

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.

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

Customer Care Number: 0194-2481999