J And K Bank Education Loan

Jammu and Kashmir bank offers both collateral and non-collateral education loans at interest rates ranging from 9% to 14% per annum. Here are the education loan products of J&K bank.

• Jammu and Kashmir bank education loan to study in India
• Jammu and Kashmir bank education loan to study abroad

The Jammu and Kashmir bank offers up to 30 lacs of education loans to students wishing to study abroad. The details of Jammu and Kashmir bank abroad education loans are listed in the below table.

Tips:

• If the interest falls below the RLLR+0.50% floor limit, the interest concessions won’t be considered. For more information talk to your financial officer from WeMakeScholars.
• Choose a well-known country like the USA, UK, or Australia for a hassle-free education loan from J & K bank.

Courses Eligible for the Loan

• For graduation- Professional or technical job-oriented courses offered by high-rated universities
• For post-graduation- MBA, MS, MCA, etc
• Courses offered by CIMA- London, CPA- USA
• Courses offered in Aeronautical, pilot training, shipping, etc provided by recognized institutions around the world

*Note:- These are not absolute details. However, they indicate the type of courses that are eligible to get an education loan abroad. You can also speak to your financial officer at WeMakeScholars to clear yourself of any confusion.

The Jammu and Kashmir Bank provides both collateral as well as non-collateral education loans to study in India. It provides a loan of up to 10 lacs to study in India.

Tip: Try to choose top premier institutions like IIM, IIT, or ISB to have an interest rate concession of 0.50%. Ask your financial officer from WeMakeScholars about more such intricacies in the J&K Education loan.

Check the latest Interest rates!

Below are a few government subsidy schemes to look out for  

Dr. Ambedkar Central sector scheme- The government has introduced Dr. Ambedkar's central sector scheme for students from OBC and EBC to promote higher education. Interest subsidies are provided under the scheme.

Padho Pardesh scheme- The scheme is for minorities(Muslims, Christians, Sikhs, Buddhists, Jains, and Zoroastrians) having a family income less than 6 lacs per annum. The scheme provides interest subsidies for overseas studies.

Note: The scheme is discontinued by the government. However, the students who have applied before 3rd march 2022 will still be eligible for the interest subsidy.

Central Scheme for Interest Subsidy for Economically Weaker Sections- The Scheme is for students from Economically weaker sections of society(family income less than 4.5 lacs per annum). The subsidy is provided for the moratorium period which is course duration plus 12 months.

The Jammu and Kashmir bank does not charge a processing fee for loans to study in India. However, there is a processing fee of 1% of the loan amount sanctioned, which is capped at a maximum of Rs 5,000 for an abroad education loan. The students can obtain a refund of the processing fee when the loan is disbursed or if the loan is not sanctioned 

Banks charge a processing fee, which should be directly paid to the banks. We at WeMakeScholars do not charge any fee to process your education loan.

J&K bank education loan will require you to submit the following documents

Section 1 : Application form

Submit an application form(will be provided by WeMakeScholars financial officer) along with your signature and 2 photographs.

Section 2: Basic documents for Applicant (student), co-applicant, and/or Guarantor

1. Proof of identity

• PAN Card or
• Aadhar card (and Passport of the student if going abroad)

2. Proof of Residence

• Voter ID Card
• Aadhaar card
• Telephone Bill
• Electricity Bill
• Bank account statement
• Ration card

*Note - Provide two different address proofs if your current address and permanent address is different 

3. For co-applicant 

If Salaried - Bank account statement for the last 6 months. 

If Self-employed - business transactions of 1 year.

4. Personal Asset & Liability Statement- Self-attest all the documents

Section 3: Academic documents of the applicant

• Mark sheets of 10th, 12th, and degree
• Admission proof of the course
• Fee structure (i-20 for US if available)
• GMAT/GRE/IELTS Scorecard
• State University’s ranking you are going to

Section 4: Income documents for financial co-applicant

If Salaried

1. Salary slips of last 3 months
2. Form 16 of the last 2 yrs
3. ID card of the Employer
4. ITR of last 2 yrs

If Self-employed

1. 3 yrs ITR
2. Last 3 yrs Balance sheet and Profit & Loss account (for self-employed businessman)

3. Business address proof

Section 5: Other Documents

1. A letter stating the leftover expenses will be carried out by the co-applicant
   Student and co-applicants joint affidavit in Bank’s standard format provided by WeMakeScholars financial officer

Section 6: Additional docs (if applicable)

1. Advancement payment receipts if any made
2. 1-year loan account statement reflecting any pending loan.
3. Provide a letter on 100 rs stamp paper explaining any gap that you have had in your studies. (Format will be provided by WeMakeScholars Financial Officer)

Collateral documents are mandatory only if you go for a collateral loan. They are also different for each state and hence ask your financial officer from WeMakeScholars to provide an accurate list of collateral documents according to your state or watch the below video.

Loan insurance of 1 to 2% is insisted by the Jammu and Kashmir bank, as it gives protection towards the loan that you take. In cases, where you, the applicant, cannot repay the loan due to unforeseen circumstances like disability or death, the loan insurance company repays it for you. Do to worry as the loan insurance amount is usually adjusted within the loan amount and so you do not need to worry about paying any money upfront. 

The banks generally ask you to arrange a portion of the expenses that you will incur for your studies, which is called a Loan margin.

Loan margin for Jammu and Kashmir bank:

Talk to your financial officer at WeMakeScholars if you are not willing to arrange the total loan margin on your part or want to reduce it. Your financial officer will either talk to the lender and try to reduce the loan margin or will suggest you a better alternative.

Below are a series of steps that you will need to follow to apply for an education loan from Jammu and Kashmir bank

Offline

• Visit the bank with the list of documents provided above
• Seek the instructions from bank employees and follow them
• Following the instruction of the bank employees might get you an education loan sanction

Online

• Request a callback from WeMakeScholars portal and wait for a financial officer to contact you
• Your financial officer will check your K&K bank loan Eligibility by asking you basic questions like the university you are going to or about the collateral that you can pledge
• He will then send you a document checklist and you can submit the listed documents in your respective bank
• The next steps in your education loan will be taken care of by the assigned lender
• In case of any doubts or queries, you can talk to your financial officer.
• Your education loan from Jammu and Kashmir bank will get sanctioned in the time promised by your financial officer

Why should you not go directly to banks(offline)?

Top reasons to not go directly through banks,

• Partial information or wrong information regarding the process
• Visit the bank multiple times for an accurate list of required documents
• Many important details will be hidden from you, like the type of interest rate
• The chances for you to obtain an education loan are minimal
• The process will take way longer than the online process

WeMakeScholars is an organization that comes under the Digital India campaign and is supported by the Ministry of IT, Govt of India. We are associated with 14+ banks(public/Pvt) in India and our motive is to offer unbiased education loans to students planning to study in India and abroad. Students interested in a hassle-free education loan can request a callback from our team. 

Below are the advantages of going through WeMakeScholars.

• Better interest rates: When you go through us, banks offer 0.5 to 2% lower interest rates compared to when you go directly, as we are their largest partner.
• Faster loan sanction: We maintain a sanction timeline of 21 days for govt banks and 7 days for private lenders, once the documents are submitted. We have a loan processing time that is 50% lesser than when you go directly through banks.
• End-to-support: We at WeMakeScholars support students throughout their loan process until the repayment.
• Cashback offered: When you go through WeMakeScholars, you get a cashback of up to  ₹3000 after your loan disbursement.
• Tax benefits: When you go through us, we make sure you are aware of all the tax benefits that you can avail yourself.

The attractive interest rates offered by Jammu and Kashmir bank can always entice you in transferring your education loan to it. 

Follow the below steps for a simpler education loan transfer to Jammu and Kashmir

• Request a callback from WeMakeScholars and meanwhile collect the information about the outstanding amount from the previous education loan
• A financial officer will get back to you. Tell him that you wish to transfer your education loan to Jammu and Kashmir bank.
• Your financial officer will provide you with a list of documents that you will need to submit to the Jammu and Kashmir bank. The Jammu and Kashmir bank will clear your dues of the previous education loan and will start the education loan process with them.

Learn about the EMI calculation before taking an education loan as this will help you keep a track of your EMIs. To easily understand the EMI calculation let us take an example to calculate the EMI through Jammu and Kashmir bank EMI calculator.

Suppose you have taken an education loan of 15 lacs at an interest rate of 9%, for a course duration of 2 years and a grace period of 1 year. Also, you plan to repay it in 12 years after the moratorium period. Let us see how much you will pay yearly.

The above-used EMI calculator took into account the following factors to calculate EMI.

• Moratorium period
• Compound and Simple interest
• Semester-wise breakdown
• Grace period
• Rate of interest
• Loan amount
• Repayment duration

The students taking an education loan from Jammu and Kashmir bank have the option of paying interest during the moratorium period. If they opt out of paying interest in the moratorium, that will add up in the monthly EMIs after the moratorium.

The students can also clear off the payment even before the repayment tenure ends through the following ways.

• Prepayment
• Choosing a shorter duration to repay the amount
• Loan transfer to another bank

The repayment stage is often when the students do not have anyone to talk to about their issues like a sudden increase in ROI. However, that is not the case with students who go through WeMakeScholars, as we at WeMakeScholars also provide post-sanction services.