Educational Loan


We at Kalyan Janata Bank, understand your career aspirations & designed this best scheme to provide financial support to aspiring students for pursuing higher professional education in India and overseas.

Purpose & Eligibility

  • Purpose:
    • Higher study in India or abroad for graduation, post-graduation and other career-oriented courses
    • Fee payable to college / school / hostel / tuition
    • Any other expense required to complete the course like expenditure of admission fees, accommodation, purchase of educational equipment / s, traveling expenses, lab apparatus, books, computer & peripherals etc.
    • Airfare in case of foreign study
    • Insurance premium payable on Policy in the name of student, if applicable.
  • Eligibility :

      Salaried Individuals :

    • Min age of the applicant: 22 years
    • Max age of the applicant (At loan Maturity): 70 yrs or retirement age, whichever is earlier (subject to submission of proof for continuity of income)

      Non Salaried Individuals :

    • Min age of the applicant: 25 years
    • Max age of the applicant (At loan Maturity): 65 yrs or retirement age, whichever is earlier (subject to submission of proof for continuity of income).
    Eligible Courses
  • Studies in India :
    • Approved courses leading to graduate / post graduate degree / doctorate and P.G. Diploma conducted by recognized colleges / universities recognized by UGC / Govt. / AICTE / ICMR etc.
    • Medical / Dental / Veterinary courses.
    • Engineering / Architecture / Agriculture / Marine Engineering
    • Management / Law
    • Courses like ICWA, CA, CFA etc
    • Courses conducted by IIMs, IITs, IISc.
    • Regular degree / diploma courses like Aeronautical, Pilot / Air Hostess Training approved by DGCA, IATA courses
    • Hospitality courses of an established / reputed University / Institute
    • Approved courses offered in India by reputed foreign Universities.
    • Employment oriented courses conducted by reputed / well established Coaching Classes (Maximum loan ₹ 5.00 lakh)
  • Studies Abroad :
    • Job oriented professional / technical courses offered by reputed Universities.
    • Post-Graduation: MBA, MS etc.
    • Medical / Dental courses,
    • Courses conducted by CIMA – London, CPA – USA
    • Any other courses.

Quantum & Tenure

  • Quantum :
    • Minimum : ₹ 50,000/-
    • Maximum :
      • ₹ 5 Lakhs Secured by future income of Student + Assignment of Life Insurance Policy of student on best effort basis
      • ₹ 50 lakh secured by immovable properties
  • Tenure :
    • Maximum repayment period shall be 12 years, including initial moratorium period for the duration of study or getting gainful employment, whichever is earlier.
    • Moratorium period may be extended for a longer period for medical students as they have to undergo internship after graduation.
    • Repayment within above maximum period may be fixed depending upon loan amount and repayment capacity of borrowers.
    • Interest during moratorium period is to be serviced by borrowers as and when debited in the account.

Documentation & Security :

  • Basic Documents :
    • In case of new customer, applicant & guarantors need to open savings / current account
    • Duly signed loan agreement
    • Details of existing on-going loan availed from banks / financial institution
    • Copy of Bank deposits / Life Insurance Policies / Other Investments (if any)
  • KYC documentation
    • Proof of identity
    • Address proof of applicant
    • 3 Passport sized photographs
  • Application Form
    • Duly filled & signed loan application form
  • Bank Statement
    • Bank statement for last one year
  • For Salaried individuals :
    • Last 3 months’ – salary slips
    • Form 16 or Income Tax Return
  • If an applicant Is a self-employed individuals :
    • Income tax returns of last 3 years, 26 AS from traces
    • Financial statements including balance sheet, profit & loss account and computation of income for last 3 years
    • Licenses / permissions from competent authorities

    • Degree / diploma / pass certificate / mark-sheet of all examinations passed (starting fromSSC / equivalent exam) and GRE & TOFEL
    • Letter of admission issued by the university / institute & I-20 (wherever applicable)
    • Letter / document for scholarship awarded (if any)
    • Document in support of the cost of study & other expenses
    • Pass-port, visa in case of study abroad
    • For immoveable property offered as collateral security (for loan limit more than ₹ 2 lakh) :
      • Chain of all previous title documents (agreements of sale and registration receipts).
      • Share certificate in case of co-operative housing society.
      • Latest receipt for maintenance charges and property tax payment.
      • NOC and no dues certificate from co-operative housing society.
      • NOC for creation of mortgage in bank’s favor from the co-operative housing society / builder.

  • Applicant should provide paper security as follow :
    Up to ₹ 2 lakhs Assignment of future income of student
    Above ₹ 2 lakhs to ₹ 5lakhs (1) Assignment of future income of student
    (2) Life Insurance Policy in the name of student for sum assured equivalent to loan amount, to explore on best effort Basis.
    Over ₹ 5 lakhs (1) Assignment of future income of student
    (2) 100% Security by way of Immovable Property or Financial Assets like Term Deposits, NSC, LIC Policies having adequate surrender value etc.
    (3) Insurance Policy in the name of student to be explored on best effort basis.

ROI &Important Terms :

  • ROI :
    • Please click here to know about latest ROI & Service Charges.

    • Applicant has to be a regular shareholder of the bank. The guarantors have to be either a regular member (shareholder) or a nominal member of bank.
    • Standing Instruction (SI) Request / ECS or NACH instructions / Post Dated Cheques (PDC) to be submitted to the bank as per requirement.
    • Search report and title clearance report for the property to be obtained from bank’s panel advocate. Professional fees / charges for the same to be borne by the applicant, even if the loan proposal is not sanctioned by the bank.
    • Valuation of the property is to be carried out by bank’s panel valuer. Professional fees / charges for the same to be borne by the applicant even if the loan proposal is not sanctioned by the bank.
    • Insurance premium for mortgaged property for the full tenure of the loan to be borne by the applicant.
    • All conditions stipulated in the advocate’s title clearance report are to be fulfilled before consideration of the loan proposal.
    • Inspection of the property / site will be carried out by bank officials. Applicant has to make necessary arrangements for this.
    • Formalities regarding recording bank’s charge on the property by the builder / co-operative housing society and transfer of share certificate in the name of the applicant / borrower by the co-operative housing society, are to be completed as early as possible. The applicant / borrower has to ensure and take active responsibilities for this.
    • The Bank may advance the loan to the Borrowers in such installments and at such times as it deems fit and reasonable.
    • The Bank shall not be bound to advance the maximum amount sanctioned as above and may decline to advance the amount or discontinue further advances at any time at its absolute discretion if the student has discontinued his studies or has failed in any examination or has failed to produce a satisfactory report of his studies and progress or for any other reasons which the Bank at its absolute discretion may consider justified and sufficient. (In the event of such discontinuance the payments already made shall be deemed to be a completed loan and shall be repayable by the Borrowers to the Bank forthwith.)
    • The Borrowers have to take consent from the bank for any change in the course of studies of the student, place of study or the Institution as stated in their loan application.
    • The Borrowers shall keep the Bank informed of any change in their residential Address and change of Employment.
    • The borrowers shall not take up any pecuniary obligation or financial liability during the currency of the loan without the prior permission of the bank.
    • Should there be any change in the borrowers’ financial or any other condition from what was stated in their application to the bank for financial assistance which is likely to affect the bank’s decision to continue the finance, the same shall be notified to the Bank and there upon the bank may decide whether to continue the loan arrangement and if so to what extent thereof.
    • The borrowers shall at the end of every academic term submit to the bank, certificates or reports of the progress of the student including results of the terminal and / or annual examination, as the case may be, from the head of the institution where he is studying together with a certificate or report about his conduct and attendance at the said Institution. The student shall take up his studies seriously and shall work hard and try his best to maintain a good academic record.
    • After completion of the course of study, it shall be the duty of the borrowers from time to time to report to the bank as soon as the student secures any employment giving full particulars of such employment and its nature and the salary and the emoluments attached thereto and also report to the bank any change in his address. Further, when the student takes up any employment after completion of his course for which the loan is given to him, he should undertake to instruct his prospective employer to deduct from his monthly salary the installments of loan and to directly remit the same to the Bank.
    • If the student receives any financial assistance by way of free-ships / scholarships / award-money etc. it should be transferred / remitted to The Kalyan Janata Sahakari Bank Ltd. for keeping in fixed deposit with the Bank for the duration commensurate with the loan maturity period at the bank’s prescribed rate prevailing at that time.
    • Direct Payment to be made to the Institute / University conducting the courses.
    • Before disbursement, applicant has to provide margin money and necessary amount to meet all the expenses (as mentioned above & as per service charges). Adequate amount for the purpose is to be deposited in the bank account in advance.