Jammu & Kashmir Bank Coaching Fee Loan Scheme (Education Loan)
This Jammu & Kashmir Bank study loan helps students finance their coaching classes in institutes that train students for entrance examinations for medical, engineering, civil services and so on. The maximum loan amount is Rs. 2 lakh per student subject to a maximum of Rs. 4 lakh for a parent or guardian.
Features of Jammu & Kashmir Bank Coaching Fee Loan Scheme
Why this Loan?
- The loan is meant to help students pay for their coaching from institutes that train them to pass the entrance examinations for medical, engineering, civil services or other competitive exams and qualify for selection
- This Jammu & Kashmir Bank Education Loan is disbursed as a series of payments over the required number of months or years and not as a lump sum
- The loan can be taken for all expenses directly related to the coaching including for laptops, desktops (PCs), tablets, study materials, online tutorials and so on
- The maximum loan amount is Rs. 2 lakh per student subject to a maximum of Rs. 4 lakh for a parent or guardian
- The interest rate for this J&K education loan is defined as the sum of RLLR and a factor of 2.00% where RLLR is the Repo Linked Lending Rate. Currently, the RLLR of Jammu & Kashmir Bank is 7.20% which brings the effective interest rate for this loan to 9.20%
Repayment and Moratorium
- This loan must be repaid within 3 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.
- 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 borrower must be an Indian national
- If the student is under the age of 18 years, the parent must primary applicant of the loan. However, if the student is above the age of 18 years then the parent must be the joint borrower of the loan
- The student’s age should not exceed the maximum qualifying age for the entrance exam
- The students should have completed Class X or above with at least 55% marks to avail this loan to pay coaching fee for medical, engineering and other entrance exams; and the students should have completed graduation/postgraduation with at least 55% marks to avail this loan to pay coaching fee for Civil Services, UGC NET and other exams
- The maximum age of parent/guardian at loan maturity is 65 years or the retirement age, whichever is earlier. If the parent/guardian is a pensioner then the maximum age at loan maturity is 68 years
- The borrowers should be permanent employees of State or Central Government, Government or Semi-Government Undertakings, Autonomous Bodies, Public or Private Limited Companies and been in current employment for at least two years
- Other individuals such as professionals, self-employed individuals, owners of proprietorship concerns, or persons engaged in agricultural and allied activities should have at least one year of dealing with the bank.
- Pensioners of State or Central Government and Public Sector Undertakings are also eligible to apply for this loan as borrowers or co-borrowers.
Borrower Contribution to Total Cost (Margin Money)
- The bank charges 10% of the coaching fee and 25% of other expenses such as the purchase of laptop, computer, study material and so on as margin for this loan
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
- The bank charges Rs. 250 for processing this loan
Uses of the Loan
- The loan amount can be used to pay coaching fees and related expenses such as the purchase of study material, e-tutorials, laptop, etc.
Other Features to Know
- The cost of laptop, PC, netbook, tablet, study material, eTutorials should not exceed Rs. 40,000 per student within the overall limit of Rs. 2 lakh
- The loan is disbursed directly to the college, bookseller or publisher, and so on and not to the applicant(s)
- 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
- Jammu & Kashmir Bank Website: www.jkbank.com
- Headquarters: Srinagar, Jammu & Kashmir
- Call Centre Toll-Free Number: 1800 1800 234