Education Loan - J & K Bank

1. Education Loan - J & K Bank Quality education is a crucial aspect of an individual’s higher studies. For most students, it brings them closer to studying at a reputed college of their choice, sans excessive fees worries. While parents invest in mutual funds, fixed deposits, term deposits, SIP etc. to fund for their family for the long-term but despite that one may encounter shortage of funds. Since the cost of education is increasing rapidly and to provide students some respite from high fees without compromising on their dreams, most banks have introduced education loan, which takes off financial burden to a great extent from the borrower. So what is an education loan? An educational loan is provided to students by a bank to allow them to meet the cost of higher studies which the student can repay once he has completed his course and becomes financially independent. It encompasses the tuition fee, accommodation charges, exam charges and other miscellaneous expenses. Who can apply? A Student is the main borrower while a family member can be the co-applicant. The amount offered to students differs from one bank to another. Types of courses under which Education Loan is covered An education loan can be availed for full-time, part-time, vocational courses, in the field of management, medical, engineering, architecture etc. Loan financing Depending on the quantity, banks can fund up to 100% of the loan. Currently, no margin money is needed for loans ranging up to Rs 4 lakh. For Inland studies, the applicant must self-finance 5%. For overseas studies, the necessary margin cash rises to 15%.

2. Currently, banks don’t ask for any collateral for loans up to Rs 4 lakh. For loans ranging from Rs 4 lakh- 7.5 lakh, a third-party guarantee is required. However, collateral is required for loans exceeding Rs 7.5 lakh. Repayment tenure The loan repayment generally begins when the student’s course is finished. Some banks even provide 6 months of relaxation after obtaining a job or one year after completing their studies. The period of repayment is usually between 5 and 7 years, but can also be expanded beyond that.The bank charges a simple interest rate on the loan over the course period. During the course period, payment of simple interest lowers the student's equated monthly installment (EMI) cover for future repayments. J&K Bank brings for you education loans for your child’s higher studies both in India and abroad starting from Rs 4lakh and above. With a J&K bank Education loan an individual can enjoy myriads of benefits such as simple documentation, quick loan disbursal, tax benefit under 80(e), tenure with long repayment, etc. Taking an educational loan helps one build a good credit score as this is the first loan in an individual’s life. Additionally,If you repay the loan on time,then it will also pave the way for you to get home loan, car loan, etc. easily in the near future. Contact US: Visit: https://www.jkbank.com Face book: http://www.facebook.com/jnkbank Twitter: https://twitter.com/jandkbank