Jammu & Kashmir Bank Budshah Primary Education Loan Scheme

Looking for a loan for funding the primary education of your children?
Jammu & Kashmir Bank’s Primary Education Loan may be just the perfect option for you

Jammu & Kashmir Bank Budshah Primary Finance

This Jammu & Kashmir Bank study loan helps parents of school-going children pay the one-time admission fees and any arrears of monthly fees subject to a maximum of 6 months. The maximum loan you can get is Rs. 80,000 for one-time admission fees and Rs. 30,000 for monthly fee arrears.

Features of Jammu & Kashmir Bank Budshah Primary Education Finance Scheme

Why this Loan?

  • The loan is meant to help parents who are facing problems to pay the school fees of their children due to reasons such as natural calamities, turmoil, political disturbances, health issues, etc.
  • The Jammu & Kashmir Bank Budshah Primary Education Finance Scheme can be used to pay fees up to Class 12 for a maximum of 2 children
  • The loan for the monthly fee can be taken more than once provided the first loan so taken has been adjusted in full

Loan Amount

  • The maximum loan you can get is Rs. 80,000 for one-time admission fees and Rs. 30,000 for monthly fee arrears


  • The interest rate for this J&K education loan is the Marginal Cost of Funds Based Lending Rate (MCLR) which with effect from 10 November 2020 is 7.5%.

Repayment and Moratorium

  • Loans Availed for Admission Fee: This loan must be repaid within 5 years. The moratorium period for this loan is 3 months
  • Loans Availed for Monthly Fee Arrears: This loan must be repaid within 2 years. The moratorium period for this loan is 3 months

Note: Moratorium is a time period during a loan term when the borrower is not required to make any repayment towards the loan.

Security Needed

  • No collateral required
  • The bank accepts a third party guarantee as security for the loan. However, permanent employees of State and Central Government, State and Central Government undertakings and autonomous bodies drawing salary through J&K Bank do not need to submit a third-party guarantee for this loan


  • The child should be above the age of 3 years
  • The school should be recognised or registered by the government
  • The applicant should have a regular source of income sufficient to cover the monthly repayments of the loan
  • Loans for Admission Fee: The applicant needs to produce a certificate of admission of the student and an estimate of admission fee payable to the school
  • Loans for Monthly Fee Arrears: The applicant needs to produce a certificate of admission of the student and arrears of monthly fee (maximum 6 months) payable to the school

Borrower Contribution to Total Cost (Margin Money)

  • The bank charges 10% on loans availed for the admission fees. The bank does not take a margin on loans availed to pay for monthly fees of students

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 1.5 lakh in which case if the borrower has to provide a margin of say 10%, then she will contribute Rs. 15,000 (10% of Rs. 1.5 lakh) to the total course fees while the lender bank offers the rest.

Processing and Other Charges

  • There are no processing charges for this loan
  • There are no prepayment charges or penalties on this loan

Uses of the Loan

  • The loan amount can be used to pay admission fees or monthly fees for school students upto Class 12
  • The loan for arrears of monthly fee for a maximum period of 6 months can be used to pay Tuition Fee, Bus Fee, etc.

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates

Reference Facts:

  • Jammu & Kashmir Bank Website: www.jkbank.com
  • Headquarters: Srinagar, Jammu & Kashmir
  • Call Centre Toll-Free Number: 1800 1800 234

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