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%.