• Jammu Kashmir Bank Car Loan Interest Rates

    Jammu & Kashmir Bank Car Finance Scheme Interest Rate for new cars begins at 7.95%. A 0.25% rebate in the rate of interest is offered to women borrowers. For used cards the interest rates will be 10.95% p.a.

    J&K Bank Car Loan

    Features New Car Loan Scheme Used Car Loan Scheme

    Interest Rates

    • Fixed interest rate – 8.70% p.a. onwards
    • Floating interest rate – 7.85% p.a. onwards

    10.95% p.a. onwards

    Repayment Period

    Ranges between 12 and 84 months in EMIs

    • For cars less than 3 years old – 72 months
    • For cars that are 3 years old or more, up to 5 years – 48 months

    Prepayment Charges


    2% for the prepaid amount

    Processing Fee

    0.50% of the total loan amount with minimum amount of Rs.500


    Loan Amount

    Rs.15 lakh

    2.5 times the net yearly income or Rs.15 lakh, whichever amount is lower

    Other Details

    Features New Car Loan Scheme Used Car Loan Scheme


    • For Central and State Government employees – 10% of on-road/ex-showroom price
    • For Gold/Platinum Account holders – 10% of on-road/ex-showroom price
    • Others – 15% of on-road/ex-showroom price
    • For vehicles less than 3 years old – 25%
    • For vehicles that are 3 years old or more, up to 5 years – 30%

    Maximum Finance for Car Purchase at Ex-Showroom Prices

    • For private organisation employees, pensioners, and employees on contract basis – 24 months net monthly salary
    • Others – 36 months net monthly salary


    Age of Applicant

    • Minimum age – 21 years
    • Maximum age at loan maturity – 70 years
    • Minimum age – 21 years
    • Maximum age at loan maturity – 65 years

    Minimum Gross Annual Income of Applicant

    • Rs.2 lakh-Rs.4 lakh


    Jammu and Kashmir Bank Car Loan Interest Rates

    Published On : 2021-06-18

    Factors Affecting J&K 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.
    2. 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.
    3. 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.
    4. 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.


    1. Who are eligible for J&K Bank Car Finance Scheme?
    2. The following entities will be eligible for the loan scheme:

      • Central/State Government permanent employees, Semi-Government/Government Undertakings and Autonomous Bodies.
      • Employees working in Private Limited Firms, Reputed Establishments, Private Organisations, Employees working on a contractual basis for the Central/State Government.
      • Self-Employed Individuals, Professionals, and Proprietorship Concerns.
      • Individuals involved in agricultural activities.
      • Retired employees of the Central/State Government and Public Sector Undertaking.
      • Joint borrowers.
    3. Can I compute the total payable EMI beforehand?
    4. Yes, you can use the online EMI calculator by BankBazaar to calculate your EMI beforehand. Enter your loan amount and yearly interest rate and click on ”Calculate”. The desired results will be displayed on the screen.

    5. Can I calculate my loan eligibility?
    6. Yes, you can use the bank’s eligibility calculator to check if you are eligible to apply for the car loan. If you are a salaried individual, you have to enter your monthly income, duration, and rate of interest. If you are a businessman, you have to enter the following information:

      • Average income from profession/business over the previous three years.
      • Average depreciation claimed over the previous three years.
      • Other taxable income that may have been received in the past.
      • Other exempt income received on a regular basis.

      Other than the above-mentioned information, self-employed individuals will also be required to enter their interest rate and select a duration.

    7. Is there provision for online application?
    8. Yes. You can apply for the loan online on the official website of Jammu and Kashmir Bank.

    9. How will the value of the used car be ascertained?
    10. The used car’s value shall be ascertained based on the current market value of the new car of same variety and configuration, minus the depreciation which is as follows:

      Vehicle’s Age Depreciation %

      Not more than 6 months


      More than 6 months but less than 1 year


      More than 1 year but less than 2 years


      More than 2 years but less than 3 years


      More than 3 years but less than 4 years


      More than 4 years but less than 5 years


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