Updated on: 22 May 2022

Jain community is one of the most prosperous communities in India. It’s the years of hard work coupled with the understanding of business that has made them a well-heeled community. However, not everyone in the community is financially strong, and this stirred the minds of some of the influential people from the community. For a long, it has been India’s culture to give to the less fortunate ones and make a level playing field for all. In the same spirit, the Jain community decided to help those students within the community who have the ability to reach greater heights in academics but are constrained by financial shortcomings.

JITO or the Jain International Trade organization is a company registered under the companies act which gives financial aid to students from the Jain community through interest subsidies. The group consists of Businessmen, Industrialists, Knowledge Workers & Professionals working in India and abroad. JITO runs the JITO Education Loan Program (or the JELP). JITO Administrative Training Foundation (JATF) helps students by subsidizing their interest payments to banks or NBFCs that are within the JELP scheme.

 An Overview

The education loan scheme is directed toward providing interest subsidies on the loan that students take from the banks or NBFCs. It is important for students to note that they have to register for the scheme within three months from the date on which the loan was sanctioned or before 31st March to be eligible for the loan subsidy scheme. JATF helps by providing interest subsidies that the students have paid in the previous year that ends on 31st March. So, effectively the interest subsidy is for the previous financial year, and not for the current fiscal.

If you are planning to apply for the interest subsidy under the JELP scheme, the time for applying is from 1st April to 31st July. Another noteworthy aspect of the interest subsidy scheme is that it is only available during the time of studies. Once your course is finished there will not be any interest subsidy provided on the abroad education loan, and it is independent of the loan period. So, if you are pursuing a master’s degree that is of two years duration then the interest subsidy will be given for those two years even if the repayment period. For abroad education loans, t he JELP provides a subsidy of 2% for the loan amount. Since the quantum of loans is too high it creates a significant difference when it comes to interest payment on the loan.

Once you apply for an interest subsidy under the JELP scheme, the committee will decide in this regard. They will assess all the parameters that they deem fit as per the requirements set forth by their rules. And the decision of the committee will be binding.

Eligibility Criteria

The eligibility criteria are pretty strict in the JELP as it is solely restricted to students from the Jain community. So, its important to see the full eligibility criteria that can help you in moving ahead with the scheme:

• The student applying for the interest subsidy must belong to the Jain community and must be an ardent follower of the faith and principles.
• The student must not be more than 30 years old.
• The student applying under the JELP scheme must have secured more than 50% marks at all the levels of academics from the 10th standard onwards.
• The quantum of loan taken by the applicant must be more than INR 50,000 for the entire course.

Application Procedure

This is a complete step-by-step guide for the application procedure under the JELP scheme. You must read it carefully, and fill out the application form as soon as possible to become a beneficiary under the scheme:

• Visit the official website of JATF and download the registration form.
• The registration form should be in such format as prescribed by the JATF. The student must submit the duly filled and signed application before the last date.
• Students are given a registration number as an acknowledgment of the receipt of the registration form. If there are any corrections or explanations to be done, it is communicated via email.
• Students must keep a note that they have to complete the registration process within 3 months of the sanction of the bank loan, or before 31st March to claim the benefits under the interest subsidy scheme.
• There is no cost for registration, it’s completely free of cost.

Procedure to Claim Interest Subsidy

The application procedure for interest subsidy starts when the registration is done. Once the concerned authorities confirm the registration process, then you can start the application procedure for the JELP scheme. Here is the step by step procedure for claiming an interest subsidy:

• The application procedure under the JELP scheme for claiming interest subsidy starts on the 1st of April every academic year.
• Students have two options to get the subsidy claim form. The first option is to download the application form from the website. The second option is to request by email to jelp@jatf.in.
• The duly filled application along with all the relevant documents must reach the JATF head office in Mumbai on or before 31st July of the academic year.
• The application form must also have the signature of the applicant, and the bank branch manager from which you have taken the education loan.

Repayment

It is perhaps the best part of the scheme. The students who are benefited from the JELP scheme in the form of interest subsidy on their abroad education loans don’t have to pay a single penny after the scheme ends. This is a completely free-of-cost exercise with the sole motive to give talented students from the Jain community to scale greater heights. The end goal is to help students surpass the monetary hurdles, and get the best education they deserve. The JELP interest subsidy is financial assistance with no strings attached.

Important Details

These are some important details that students must know before applying for the interest subsidy scheme:

• If you are a beneficiary of the interest subsidy under the JELP scheme then you have to mandatorily submit a progress report of the course, marks sheet, and any other relevant academic information asked by the JATF Head Office.
• Students who are the beneficiary of the scheme have to mandatorily inform the JATF head office about any change of address, contact number, email ID, college, course, or any other major change to the JATF Head Office to the earliest.
• Once your studies are over you have to give details about your employment or job or business to the JATF Head Office.
• The benefits under the JATF are restricted to one scheme only, and an applicant can only claim benefits under either JELP or SEED (Students Empowering Education and Development).

Documents Required

• Loan sanction letter from the bank.
• The copy of fee receipts, if you have one.
• The letter of acceptance from the university or the college.
• The course fee, and other financial details like scholarships, fee waiver, or any other funding.
• Copy of result of GRE, TOEFL, GMAT, IELTS, SAT, or any other pre-admission exam, if the student is going abroad for higher education.
• The marks sheet of all the classes from 10th standard onwards.
• Latest Income Tax Returns / Income proof of both parents (self, if any).
• One passport size photograph, PAN Card, Aadhar Card, Latest Electricity Bill.
• Recommendation from any JATF Patron Member or JITO Chapters/JITO CP/FCP/Patron Member is mandatory.
• Students going abroad have to give a copy of their passport and copy.
• Certificate of being Jain follower / Religion Certificate.
• Any document that verifies the date of birth.
• Interest Payment Certificate from Bank for April to March.
• Copy of Pass Bank / Bank Statement showing payment of Interest.
• No Due Certificate from Bank, if the loan is fully repaid.

Read Also:

• Student Loan Application in Private Banks
• Education Loan Without Collateral For Abroad Studies
• Collateral Security for Education Loan
• Types of Collateral Security Acceptable for an Education Loan
• Education Loan: Eligibility Criteria and Basic Requirements

Difference between JELP and SEED

The SEED project is also part of the JITO. There are some differences but by and large, the schemes are similar in nature. The two schemes are floated to widen the ambit and incorporate more students from the Jain community. Some core features of the SEED project that makes it different from the JELP scheme:

• The SEED project unlike the JELP scheme is a loan. JELP is an interest subsidy scheme.
• The loan sanctioned under the SEED project is an interest-free loan but the student has to repay it.
• The entire loan amount has to be paid within one year of completion of the course, and if the applicant fails to repay the loan on time then an interest of 12% per annum will have to be paid on the remaining amount.
• The repayment is allowed either in one or more installments within one year of completion of the course.
• The applicants should have more than 60% marks at different levels of academics from the 10th standard onwards.
• You must have arranged the 50% of the total cost of education.
• The maximum interest subsidy for graduation and vocational courses is INR 1 lakh. While for post-graduation the limit is INR 3 lakh.
• Students have to attend an interview, and in case the student has already gone to the place of study, in that case, the parents or legal guardian can attend.

So that’s the basic overview of the JITO education loan scheme. If you have any doubts or questions related to abroad education loans, please post them in the comment section.

• Bank of Baroda BoB 
• State Bank of India SBI 
• Credila HDFC 

First published date: 05 May 2022