Jammu and Kashmir Bank Car Loan Interest Rates

J&K Bank Car Finance Scheme interest rates for the purchase of a new vehicle are based on either fixed or floating interest rate. This particular rate of interest shall remain invariable throughout the loan tenure. 

J&K Bank offers a fixed interest rate of 8.70% for all new/fresh cars. The rate of interest you are eligible for will be dependent on various factors which have been mentioned below: 

1. Credit Score - A credit score is essentially a validation of your previous performance with respect to credit card or loan repayments. For every payment that you have made towards your previous loans, points get added to your score. 

Any default or delay in the payments can result in the reduction of your credit score thereby affecting your interest rate. A credit score above 750 is typically considered suitable or healthy. 

1. Applicant's Income - Lenders view high earners as safe bets. With an increase in the applicant's income, his/her affordability will also increase, and he/she will be less likely to delay the payment. 

1. Applicant's Organisation - Certain banks and lenders consider the organisation of the applicant while determining their rate of interest. This is because employees of a well-respected organisation are typically considered to be more responsible and stable with respect to making EMI payments. 

Apart from that, the kind of employment also matters. For example, the rate of interest for a salaried individual will vary from that of a self-employed professional. 

1. Customer Relationship - Existing loyal customers of the bank receive certain privileges and benefits in terms of getting a lower rate of interest as compared to the advertised rates. Having a decent payment record will always play a part in getting you a good deal. 

A good credit score can help you secure lower interest rates on loans and credit cards.

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