Jammu & Kashmir Bank Skill Loan Scheme

Looking for a loan for funding your technical education from Jammu & Kashmir Bank?
The J&K Bank Skill Loan may be just the perfect option for you

Jammu & Kashmir Bank Skill Loan Scheme

This loan helps students who have gained admission into technical courses offered by ITIs, polytechnics, schools, colleges, etc. to pay for their course fees. The loan amount starts from Rs. 5,000 and can go up to Rs. 1.5 lakh depending on the duration of the course.

Features of Skill Loan Scheme for Technical Courses from Jammu & Kashmir Bank

Why this Loan?

  • The loan is meant for you if you have gained admission into a technical course offered by a polytechnic, Industrial Training Institutes (ITIs), etc. in India
  • The Jammu & Kashmir Bank Skill Loan is disbursed as a series of payments over the required number of terms or years to pay the course fees or other approved charges
  • There is no minimum duration of course required to apply for this loan

Loan Amount

  • The minimum loan amount starts from Rs. 5,000 and the maximum amount can go up to Rs. 1.5 lakh depending on the duration of the course

Interest

  • The interest rate for this J&K Bank education loan is defined as the sum of MCLR and a factor of 1.50% where MCLR is the Marginal Cost of Funds-Based Lending Rate (MCLR). Currently, the MCLR of Jammu & Kashmir Bank is 7.50% which brings the effective interest rate for this loan to 9.00%
  • The interest rate is fixed for loans of up to 5 years

Repayment

  • Loans of up to Rs. 50,000: Repayment period is up to 3 years after course completion
  • Loans between Rs. 50,000 and 1 lakh: Repayment period is up to 5 years after course completion
  • Loans above Rs. 1 lakh: Repayment period is up to 7 years after course completion
  • The repayment moratorium for courses of less than 1 year is equal to the sum of the course duration and an additional grace period of 6 months after course is completed
  • The repayment moratorium for courses of over 1 year duration is equal to the sum of the course duration and an additional grace period of 12 months after course is completed

Security Needed

  • The bank does not ask for any collateral or third party guarantee
  • The parents have to sign the loan documents with the student as joint borrowers
  • The loan is covered under the Credit Guarantee Fund Scheme for Skill Development (CGFSSD) of National Credit Guarantee Trust Company.

Eligibility

  • The borrower should be an Indian national
  • In case the student is a minor, the parents will have to sign the application and do the necessary paperwork. The bank will get the student to ratify the loan through a letter of acceptance of terms and conditions once she or he reaches the age of majority

Eligible Courses

  • Courses offered by Industrial Training Institutes (ITIs), polytechnics, schools recognised for the same by the central or state education board or college affiliated to a recognised university are eligible for the loan
  • Certificate, diploma or degree course from training centres that are affiliated to professional skill augmentation bodies such as National Skill Development Corporation (NSDC), sector skill councils, state skill missions, state skill corporations and who operate under the National Skill Qualification Framework (NSQF) are eligible to apply for the loan
  • The bank allows its State Level Bankers Committee (SLBC) or State level Co-ordination Committee (SLCC) to add state-specific skill development courses that offer good employability opportunities for course students

Borrower Contribution to Total Cost (Margin Money)

  • The bank charges a 5% margin for this loan

Processing Charges

  • There are no processing charges for this loan

Uses of the Loan

  • The loan amount can be used to pay any fees or other charges that are a part of the standard tuition cost
  • The loan can also be met to cover examination, library and laboratory fees
  • It also covers any caution deposit fees
  • It can also be used to buy books or equipment or instrument needed for the course

Other Features to Know

  • The borrower can repay the loan from any time without having to pay any prepayment charges
  • The bank may ask for the student’s progress report after each term or semester before releasing the next instalment
  • The loan is disbursed directly to the college, bookseller or publisher, computer seller, and so on and not to the applicant(s)

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