Jammu and Kashmir Bank

The Jammu and Kashmir Bank was founded on 1 October 1938 under letters patent issued by the Maharaja of Jammu and Kashmir, Hari Singh. The Maharaja invited eminent Kashmiri investors to become founding directors and shareholders of the bank, the most notable of which were Abdul Aziz Mantoo, Pesten Gee and the Bhaghat Family, all of whom acquired major shareholdings.

The bank commenced business on 4 July 1939, and was considered the first of its nature and composition as a State owned bank in the country. The bank was established as a semi-State Bank with participation in capital by State and the public under the control of State Government. In 1971, the bank acquired the status of a scheduled bank and was declared as an "A" Class bank by the Reserve Bank of India in 1976.

Education Loan Scheme:

Scale of Finance:

10.00 Lacs for studies in India.

20.00 Lacs for studies abroad.

Courses Financed (India):

Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.

Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.

Courses like ICWA, CA, CFA etc.

Courses conducted by IIM, IIT, IISc, XLRI. NIFT,NID etc.

Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, degree/diploma in nursing or any other discipline approved by Director General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in India.

Approved courses offered in India by reputed foreign universities.

Courses offered by National Institutes and other reputed private institutions.

Courses Financed (Abroad):

Graduation: For job oriented professional/ technical courses offered by reputed Universities.

Post graduation: MCA, MBA, MS, etc.

Courses conducted by CIMA- London, CPA in USA etc.

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.

Eligibility:

Should be an Indian National

Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent).

For pursuing courses in IIT/IIM/ISB*:

For loan up to 10.00 lacs- Co-obligation of parents/ guardian, 3rd party guarantee of 2 persons and assignment of future income of the student. No collateral security is required

*ISB means Indian School of Business, Hyderabad.

For others:

Up to  4.00 lacs

Parents to be joint borrower(s). No Security

Above  4 lacs and up to 7.5 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).

Above  7.5 lacs

Parent(s) to be joint borrower(s)  Tangible collateral security of suitable value acceptable to Bank

For Rate of Interest :

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Repayment:

Repayment of the loan will be in equated monthly instalments for periods as under:

For loans up to   7.5 lakhs - upto 10 years

For loans above 7.5 lakhs - upto 15 years

Repayment shall start after Repayment holiday/Moratorium period , which shall be as under;

Repayment holiday/MoratoriumCourse period + 1 year or 6 months after getting job, whichever is earlier.

The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Installments (EMI) fixed.

If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, Sanctioning authority (which has sanctioned the case) may at his discretion consider such extensions as may be deemed necessary to complete the course. In case the student discontinues the course midway, appropriate repayment schedule will be worked out by the Business Unit in consultation with the student/parent.

While EMI based repayment is the generally accepted practice, many times the salary levels at the start of the career may not facilitate comfortable payment of EMI in certain cases (e.g. professionals like Doctors). Telescoping of repayment with stepped up instalments with passage of time may be considered in such cases. Such ballooned repayment shall be normally allowed only if allowed at the time of initial sanction, clearly documented in the sanction letter and applicable from the first repayment installment.

Penal interest @ 2% be charged for non-repayment of loan installments, subject to provisions of priority sector advances, i.e.

Up to Rs 25,000- Nil

Above Rs 25,000 As applicable to retail advances,(Presently 2% on default/ irregular portion).

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