Jammu & Kashmir Bank — Education Loans (India)

1. Bank Overview

J&K Bank, established in 1938 and headquartered in Srinagar, is a public-sector bank with a significant presence in Jammu & Kashmir and expanding reach across India via over 1,000 branches. It caters to both domestic and international education financing needs.

2. Loan Schemes & Eligible Amounts

J&K Bank provides comprehensive student loan products for both domestic and abroad studies:

3. Margin & Collateral Requirements

• Up to ₹4 lakh: No margin (domestic or abroad)

• Above ₹4 lakh:

  • India: 5% margin required
  • Abroad: 15% margin required

4. Interest Rates & Concessions

Floating Rates (RLLR-based)

• Up to ₹7.5 lakh: RLLR + 2%
• Above ₹7.5 lakh: RLLR + 1.5%

Fixed Rates (Tenure ≤ 5 years)

• ≤ ₹5 lakh: ~12.25%
• ₹5–10 lakh: ~13.25%
• ₹10–20 lakh: ~14.00%

Interest Rate Concessions

• 1% off if interest is serviced during moratorium
• 0.5% off for female students
• 0.5% off for IIM/IIT/ISB admits (floors apply)

5. Moratorium & Repayment Terms

• Moratorium: Course duration + 1 year (or 6 months post-employment)
• Repayment Tenure: Typically 5–7 years; extends to 15 years for loans exceeding ₹7.5 lakh

6. Expenses Covered

Loan amounts can cover:

• Tuition, hostel/accommodation (up to 20% of tuition)
• Lab/library fees, exams
• Books, equipment, uniforms
• Travel, insurance, caution deposit
• Computers (if required) and study tours—capped at ≤40% of tuition

7. Processing Fees & Security

• Meals/Processing Fee:

  • Domestic: Typically NIL
  • Abroad: ~1% of loan amount (capped at ₹5,000), often refundable upon disbursement

• Security Requirements:

  • Up to ₹4 lakh: No collateral (parent/guardian as co-borrower)
  • ₹4–7.5 lakh: Third-party guarantee + co-borrower
  • Above ₹7.5 lakh: Collateral required
  • No collateral required for premier institutes within ₹10 lakh limit

8. Skill Loan Scheme

For vocational or skill courses:

• Loan range: ₹5,000 to ₹1.5 lakh
• Interest: MCLR + 1.5% (~9% effective)
• No collateral required; covered under credit guarantee
• Repayment: 3–7 years; moratorium equal to course duration + 6–12 months

9. Summary Table