Education Loan


I. Student Eligibility:

• Should be a permanent resident of J&K State (Within area of operation of the Bank).
• Secured admission to professional/ technical courses in India or Abroad through Entrance Test/ Merit Based Selection process.

II. Courses Eligible:

a) Studies in India: (Indicative List):
1. Graduation Courses: BA, B.Com. B.Sc. etc.
2. Post Graduation Courses: Masters & PhD.
3. Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.
4. Computer certificate courses of reputed institutes accredited to Dept. of Electronics OR institutes affiliated to university.
5. Courses like ICWA, CA, CFA etc.
6. Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
7. Regular Degree/ Diploma courses like Aeronautical, Pilot Training, Shipping etc. approved by Director General of Civil Aviation/Shipping, if the course is pursued in India. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/ shipping authority.
8. Courses offered in India by reputed foreign universities.
9. Evening courses of approved institutes etc.
10. Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR, etc.
11. Courses offered by National Institutes and other reputed private institutions.
12. Courses, which are not covered under the criteria, mentioned above, Chairman is empowered to take a view from time to time and to consider extending Education loan under the scheme taking into account the future prospects/ recognition by user institution.

(b) Studies Abroad:
1. Graduation: For job oriented professional/ technical.
2. Courses offered by reputed universities.
3. Post Graduation: MCA, MBA, MS, etc.
4. Courses conducted by CIMA- London, CPA in USA etc.
5. Degree/diploma courses like aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/ abroad.

III. Expenses considered for loan:

• Fee payable to college/ school/ hostel.
• Examination/ Library/ Laboratory fee.
• Purchase of books/ equipments/ instruments/ uniforms.
• Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
• Travel expenses/ passage money for studies abroad.
• Purchase of computers - essential for completion of the course.
• Insurance premium for student borrower.

Any other expense required to complete the course - like study tours, project work, thesis, etc.

C. Quantum of finance:

Need based finance subject to repaying capacity of the parents/ students with margin and the following ceilings:
1. Studies in India: Maximum Rs.10.00 lacs
2. Studies abroad: Maximum Rs.20.00 lacs.

D. Margin:

i. Up to Rs.4.00 Lakh: Nil.
ii. Above Rs.4.00 Lac:   Studies in India - 5%.
                                         Study Abroad - 15%
Scholarship/ assistantship, to be included in margin.
Margin to be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis


Up to Rs.4.00 lacs :
Parents to be joint borrower(s). No security.

Above Rs.4.00 lacs to Rs.7.50 lacs

Besides the parent(s) executing the documents as joint borrower (s), collateral security in the form of suitable third party guarantee will be taken. The bank may, at its discretion, in exceptional cases, waive off third party guarantee if satisfied with the net worth / means of parent/s who would be executing the document as joint borrower(s). Such powers shall lie with the General Managers and Chairman of the Bank.

Above Rs.7.50 lacs to Rs.20.00 lacs
i. Parent(s) to be joint borrower(s)
ii. Assignment of future income of the student for payment of loan instalments. 
iii. Third party guarantee of one person having sound financial net means good for the loan amount and known to the Bank.
iv. Tangible collateral security of suitable value acceptable to bank in the shape of  Mortgage of immovable property OR Govt. securities, NSC, KVP, life policy (surrender value), Bank Deposit in the name of Student/ parent or any other third party or any other tangible security equivalent to 100% of the loan amount.

F. Repayment Period:

Course Period + 1 year
The loan to be repaid within a period of 15 years

Processing Charges:

Up to Rs. 4.50 lacs : NIL
Above Rs.4.50 lacs (For studies in India) : 0.25% of the loan amount
Above Rs.4.50 lacs (For studies abroad) : 0.50% of the loan amount 

*Conditions Apply