J&K Grameen Bank Education Loan
J&K Grameen Bank is a regional bank that provides banking services in the rural and semi-urban areas of Jammu & Kashmir and some parts of Ladakh. The J&K Grameen Bank provides education loans at interest rates ranging between 10.95% p.a. to 12.20% p.a., which helps students to pay for their higher studies in India or abroad.
The education loan provided by J&K Grameen Bank covers costs like tuition fees, books, travel, and living expenses. The maximum loan amount an individual can get is Rs.10 lakh for studies in India and Rs.20 lakh for studies abroad. The loan is available for various approved courses in recognized institutions.
J&K Grameen Bank Education Loan Interest Rates
The bank offers a concession of 0.25% to a girl student or to a student who scored more than 85% in the last exam. Here is the list of interest rates on various amounts:
Amount | Rate of interest |
Up to Rs.5.00 lakh | 10.95% p.a. |
More than Rs.5 lakh to Rs.10 Lakh | 11.20% p.a. |
More than Rs.10 lakh to Rs.20 lakh | 11.70% p.a. |
More than Rs.20 lakh | 12.20% p.a. |
Eligibility Criteria for J&K Grameen Bank Education Loan
Given below is the eligibility criteria required by the bank before applying for an education loan:
- Must be a permanent resident of J&K within the Bank’s operational area.
- Must have admission to professional/technical courses in India or abroad through an entrance exam or merit.
Courses Covered Under J&K Grameen Bank Education Loan
This bank covers a wide range of recognized courses in India and abroad. Given below is a list of eligible programs under the loan:
1. For Studies in India
- Undergraduate Programs: BA, B.Com., B.Sc., and so on.
- Postgraduate Programs: Master's degrees and PhDs in different fields.
- Professional Courses: Engineering, Medical, Law, Agriculture, Management, etc.
- Certifications: Certified courses like CA, ICWA, CFA, etc.
- Top Institutions: IITs, IIMs, IISc, XLRI, NIFT, etc.
- Specialized Fields: Pilot Training, Shipping, Aeronautical studies that are approved by authorities such as DGCA, DGS, etc.
- Part-time Courses: By approved and recognized institutes.
Note: If a course is not mentioned in the above list, then the loan decision could be decided by the chairman as well. The decision will depend on things like the future scope of the course and recognition of the institute.
2. For Studies Abroad
- Graduate-Level Courses: Job-oriented professional or technical programs.
- Postgraduate Degrees: MBA, MS, MCA, and more.
- International Certifications: From institutions like CIMA (UK), CPA (USA), etc.
- University Courses: Offered by reputed and recognized foreign universities.
Collateral Requirements for J&K Grameen Bank Education Loan
The security or guarantee totally depends on the amount of the loan. For all loan amounts, your parent(s) must be joint borrowers. The given below table shows the collateral requirements for various amounts:
Loan Amount | Security |
Up to Rs.4 lakh | NIL |
Above Rs.4 lakh to Rs.7.50 lakh | Third-party guarantee required(May be waived if parents have strong finances) |
Above Rs.7.5 lakh to Rs.20 lakh | Assignment of student’s future income Third-party guarantee from a financially sound person Tangible collateral equal to 100% of the loan (property, FD, LIC policy, NSC, etc.) |
Processing Fees and Repayment Tenure
The loan repayment starts after the course period plus one year, and the entire loan must be repaid within 15 years. The processing fee varies depending on the loan amount and whether the studies are in India or abroad, as shown below:
Loan Amount | Processing Fee |
Up to Rs. 4.50 lakh | NIL |
Above Rs. 4.50 lakh (India) | 0.25% of the loan amount |
Above Rs. 4.50 lakh (Abroad) | 0.50% of the loan amount |
FAQs on J&K Grameen Bank Education Loan
- What is the purpose of the J&K Grameen Bank education loan?
The purpose of the J&K Grameen Bank education loan is to provide financial help for higher education to the deserving students so that lack of funds does not stop them from pursuing their studies.
- Is there any margin required for the J&K Grameen Bank Education Loan?
For loans up to Rs. 4 lakhs, no margin is required. For loans above Rs. 4 lakhs, the margin is 5% for studies in India and 15% for studies abroad.
- Is there any processing fee for the J&K Grameen Bank Education Loan?
There is no fee for loans up to Rs.4.5 lakh. But, for the loans above Rs.4.5 lakh, the processing fee is 0.25% (India) and 0.50% (abroad).
- What is the interest rate for an education loan from J&K Grameen Bank?
The rate of interest for education loans in J&K Grameen Bank ranges from 10.95% p.a. to 12.20% p.a.
- What expenses are covered under the J&K Grameen Bank Education Loan?
The loan covers tuition fees, examination fees, books, equipment, hostel charges, travel (for studies abroad), and other related expenses.
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