J&K Bank introduces loan for students aspiring for competitive exams
Jammu and Kashmir Bank has launched a facility to finance coaching classes and related expenses for students aspiring to take entrance examinations in fields like medicine, engineering, civil services and post-graduation courses. The loan is classified as priority and has a maximum limit of Rs. 2 lakh per child/student for coaching studies in India.
Eligibility and Borrower eligibility
To be eligible for the loan, students must be Indian nationals and have completed Class X or above with a minimum of 55% marks in the previous qualifying exam. The borrower must be a parent or guardian if the student is below 18 years of age and must have been in current employment for at least two years in a government or semi-government undertaking, autonomous body, public or private limited company. Professionals, self-employed individuals, and persons engaged in agricultural and allied activities with at least one year satisfactory dealing with J&K Bank are also eligible.
Loan amount and quantum of finance
For permanent employees or pensioners, the maximum loan amount is 18 times their gross monthly salary/pension/income or 90% of the coaching fee, whichever is lower. For other eligible categories, the loan amount is 1.5 times the average gross annual income of the last two years or 90% of the coaching fee, whichever is lower. The loan can also cover expenses like lodging, boarding, purchase of laptop, PC, netbook, tablet, study material, and eTutorials.
Processing charges and margin
The loan processing charge is Rs. 250, and the margin for coaching fee is 10%, while the margin for other expenses is 25%.
Security and rate of interest
Primary security is not required for the loan, and collateral security is third-party guarantee of one person. In the case of pensioners, the guarantee of one person and the spouse eligible for family pension is required. The rate of interest is floating and subject to change, currently set at RLLR + 2%.
Repayment and other details
The loan has a repayment period of 36 months, including a moratorium period of three months. The loan can be availed by parents or guardians jointly with the student if the latter is 18 years or above. The loan cannot exceed Rs. 40,000 for the purchase of laptop, PC, netbook, tablet, study material, and eTutorials, within the overall limit of Rs. 2 lakh per child/student.
This loan facility will help many deserving students to achieve their dreams of pursuing higher education and secure their future in competitive exams. J&K Bank is committed to providing financial assistance to its customers and helping them fulfill their aspirations.