Jammu and Kashmir Bank Car Loan

Jammu and Kashmir Bank commenced business on July 4, 1939, and was considered the first of its nature and composition as a State-owned bank in the country. The bank was established as a semi-State Bank with participation in capital by State and the public under the control of State Government.J&K Bank functions as a universal bank in Jammu & Kashmir and as a specialised bank in the rest of the country. It is also the only private sector bank designated as RBI’s agent for banking business, and carries out the banking business of the Central Government, besides collecting central taxes for CBDT. To know more, follow some simple steps given below to get attractive deals.

Overview About Jammu and Kashmir Bank Car Loan

Some people believe that possessing a car will make it easier for them to travel from one place to another. But when it comes to buying a car, the cost makes them cancel their ideas of owning one. Today, these people can easily buy a car by opting for car loans. Car loans make it easier for people to purchase their own four-wheeler. A lot of banks provide car loans for new and used cars with a good rate of interest. One such bank is the Jammu and Kashmir (J&K) Bank.

Jammu and Kashmir Bank was founded in 1938 and became the first state-owned bank in India. The bank works as an universal bank in Jammu and Kashmir and as a specialized bank in the rest of the country. Headquartered in Srinagar, the bank has over 903 computerized bank branches, 25 Cash deposition Machines (CDMs), and 1171 ATMs far in multiple cities far and wide across the country.

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Why choose Jammu and Kashmir Bank Car Loan?

J&K Bank provides attractive car loans for both new and used cars to its customers. The bank provides good rates of interest and high amount of car loans to its customers, helping them in buying their dream car. Its car loan is available for all groups of people. Be it the people working in the public sector or private sector, people who are self employed, professionals, agriculturalists, etc., the loan is available for all if they match the bank’s eligibility criteria.

Features of Car Loans from Jammu and Kashmir Bank

Maximum Amount of Loan

J&K Bank provides up to Rs.50 Lakhs to its customers under its car loan scheme for new cars and for used cars, the bank provides loan up to Rs.15 lakh. This feature of the bank helps people buy the best car for themselves.

Flexible Repayment Period

J&K Bank provides its customers with flexible options for repaying their car loans. A person can repay his J&K Bank car loan, taken for a new car, in equated monthly installments (EMI) ranging from 12 to 84 months. In case of used cars, the repayment period is maximum 72 months if the car is less than 3 years old. If the car is 3 years old or above (up to 5 years old), then the maximum repayment period is 48 months.

Competitive Interest Rates

The bank provides attractive rates of interest on car loans to its customers. It provides both floating and fixed rates of interest options. In case of new cars, the fixed rate of interest is 11.25% p.a. with monthly rests and the floating is base rate plus 1% p.a. with monthly rests. The bank also provides the benefit of a rebate of 0.25% in the interest rate to its women customers.

Quantum of Loan

Jammu and Kashmir Bank offers car loans to its customers with less loan margin in order to help them purchase the car of their dreams. In case of new cars, the maximum corpus offered to customers is as follows-

• Employees of the State/Central Government, government undertakings, and autonomous bodies who withdraw salary through Jammu and Kashmir Bank accounts are offered car loans subject to a maximum of 90% of the ex-showroom or on-road price of the car.
• Jammu and Kashmir Bank customers who hold Platinum or Gold current bank accounts are eligible for car loans up to 90% of the ex-showroom or on-road price of the selected car.
• Other borrowers can get car loan financing up to 85% of the on-road or ex-showroom price of the car.

If a person is planning to purchase a used/pre-owned car, below mentioned is the maximum quantum of loan that he or she can withdraw using Jammu and Kashmir Bank Car Loan -

• If the old/used car is less than 3 years old, the customer can get a car loan of up to 75% of the valuation amount of the vehicle.
• In case the customer is planning to purchase a pre-owned/old car that is more than 3 years old, the maximum amount of loan that he or she can withdraw is 70% of the valuation amount of the vehicle.

Minimal Processing and Prepayment Charges

Jammu and Kashmir Bank Car Loan carries zero prepayment charges if the customer uses the funds to purchase a new car. However, if the customer wishes to prepay a car loan amount borrowed to buy a used car then the bank levies a penalty of 2% of the amount that is prepaid.

When a borrower applies for a car loan through J&K Bank to purchase a new car, he or she has to pay a processing fee of 0.50% of the loan amount with a minimum of Rs.500. On the other hand, there are no upfront charges if the car loan is used to buy a pre-owned vehicle.

Why apply for a Jammu and Kashmir Bank Car Loan through BankBazaar.com ?

BankBazaar.com is the best place for a person who wishes to buy a car loan. It provides people with a platform where they can compare quotes provided by different banks and understand the features and rates of the different loan schemes. The website guides people in choosing the best car loan which suits their requirement. BankBazaar helps a person through the entire process of getting a car loan, from application to finally achieving it.

Jammu and Kashmir Bank Car Loan Interest Rate

J&K Bank car loans have different rates of interest for new and used cars. It provides the option of both fixed and floating rates of interest on car loans for new cars to its customers while for used cars, there is a fixed rate of interest.As per the guidelines of Reserve Bank of India, the rate of interest on Jammu and Kashmir Bank Car Loan are based on the Marginal Cost of Funds-Based Lending Rate (MCLR) system.

For new cars -

• The fixed rate of interest on car loan for general public is 11.25% p.a. with monthly rests and the floating rate of interest is base rate(BR) + 1% p.a. with monthly rests.
• The fixed rate of interest on car loan for companies and firms is 11.75% p.a. and the floating rate of interest is base rate(BR)+1.50% p.a.
• A rebate of 0.25% in interest rate is awarded to the women customers applying for the car loan.

Check out the interest rates offered by Jammu and Kashmir Bank on new cars based on the applicable ongoing MCLR -

For used cars -

• If the period of car loan is up to 4 years, the fixed rate of interest is 15.25%up to 12.45% - depending on the loan tenure
• If the period of the car loan is more than 4 years, the fixed rate of interest is 13.45%

Learn about the fixed rates of interest offered by Jammu and Kashmir Bank on old/pre-owned cars based on the applicable ongoing MCLR -

To check the latest rate of interest, one should visit the bank’s website.

Jammu and Kashmir Bank MCLR Based on the Period of Loan Maturity Effective from 10 March 2018 -

Applicable MCLR for Floating Rate of Interest -

Applicable MCLR for Fixed Rate of Interest -

Eligibility Criteria for a car loan from Jammu and Kashmir Bank

Car Loan for new cars -

1. The people who can apply for car loan should be -
   • A permanent government employee or an employee of government or semi-government undertaking or an autonomous body
   • An employee working on contract with the government or with a government or semi-government undertaking or an autonomous body, provided he is working on the contract for the past 1 year and will be part of it during the entire tenure of the car loan
   • An employee of private organization, private limited companies or a reputed organization
   • Professional, self employed or a proprietor
   • A person involved in agriculture and related activities
   • Retired government or public sector undertaking employee
2. Joint borrowers are eligible to apply for this car loan
3. 21 years is the minimum age for applying for this loan
4. In case of a government employee, an employee hired on contract basis by the government or a private organization employee -
   • The maximum age during maturation should be either 60 years or the age of retirement (if retired before reaching 60 years)
   • The minimum gross annual income has to be Rs. 3 lakhs p.a.
   • The minimum employment period of the applicant should be 1 year at least
5. In case of professionals, self employed, proprietors, agriculturalists, etc. -
   • The age of the borrower during loan maturity should be maximum 70 years
   • The applicant should have at least 3 years of experience in business
   • The minimum gross annual income of the applicant has to be Rs. 4 lakhs p.a.
6. In case of retired government employees or retired employees of a public sector undertaking -
   • The age of the borrower should be maximum 70 years at the time of maturity
   • The minimum gross annual income should be Rs. 2 lakhs

Car Loan for used cars

1. Permanent employees of government or semi-government undertakings, public sector undertakings, autonomous body, private, or reputed companies are eligible for this car loan. Professionals, self employed individuals, proprietors, partnership firms, private limited company or public limited companies also qualify for the loan.
2. For salaried individual -
3. The applicant should be 21 years old at least
   • He should be below 58 years of age during the loan maturity period
   • The institutions where the age of retirement is 60 years, the maximum age required during loan maturity will be 60 years maximum
   • The minimum employment period is 3 years. In case an applicant, who draws his salary from a J&K Bank account, provides a letter of undertaking from the employer, then the minimum employment period required will be 2 years for him.
4. For self employed individual-
   • The applicant should be above 21 years of age
   • He should be below 65 years of age during the time of loan maturation
   • He should be in business for at least 3 years
5. A partnership firm or private limited or public limited company which applies for a car loan should have an existence of at least 3 years

How to calculate EMI on Jammu and Kashmir Bank car loans?

Calculating the equated monthly installment (EMI) in advance helps a person decide important things about the car loan he plans to buy. To calculate the EMI, one can use the EMI calculator found in the ‘finance tools’ section on BankBazaar’s website. A person should have information such as the amount of loan, the rate of interest and processing fee with him as it is required for calculating the EMI.

To use the calculator, you should first enter the amount of loan on tenure on the sliders. Then, you have to fill in the rate of interest and processing fee in percentage. After filling in all the information, click on ‘calculate’ to get the EMI and details such as the amortisation table. A person can use the details on the result to choose the best car loan for himself.

Jammu and Kashmir Bank Car Loan FAQs

1. Is there any processing fee that I have to pay?

   The processing fee is 0.50% of the loan amount. This fee is a minimum of Rs.500.

2. Is there a penalty for prepayment?

   If you are taking the car loan for a new car, then you do not have to pay any penalty for prepayment of the loan. In case of a used car, there is a 2% penalty for prepayment of the loan and prepayment is allowed only after 6 months of taking the loan.

3. How do I contact J&K Bank for any queries on its car loan scheme?

   To contact J&K Bank, one has to call up on their customer care number which can be found on their website.

4. What is the loan margin in this car loan scheme?

   For new cars, the loan margin is 10% of ex-showroom or on road price for permanent government employees, people working in the government undertakings or autonomous bodies, who draw their salaries from J&K Bank account and have a letter of undertaking from their employers. The same percentage is also applicable for people who have J&K Bank’s gold or platinum current accounts. For everyone else, the loan margin is 15% of ex- showroom or on road price.

   For used cars, the loan margin is 25% for vehicles which are less than 3 years old and 30% for vehicles which are 3-5 years old.

5. Who can apply for a car loan from J&K Bank?

   Central or State Government Permanent Employees, Semi – Government or Government Undertakings and Autonomous Bodies, Salaried Employees, Employees working on contract basis for a Government or Semi – Government Undertaking or Autonomous Body, Professionals, Self – Employed individuals, Proprietors, Retired Public Sector or State or Central Government Employees, etc. can apply for a car loan from J&K Bank.

6. Can people who are engaged in agriculture and allied activities apply for a car loan from J&K Bank?

   Yes, people who are engaged in agriculture and allied activities can apply for a car loan from J&K Bank.

7. What type of cars does J&K Bank provide car loans for?

   J&K Bank provides car loans for purchase of new cars or Jeeps or Vans or SUVs or Multi – Utility Vehicles.

8. Does J&K Bank provide car loan for used cars?

   Yes, J&K Bank provides car loan for used cars.

9. For what purpose can people take a car loan from J&K Bank?

   People can take a car loan from J&K Bank for the purpose of purchasing a new or a used car. The car they buy using J&K Bank car loan should be meant for private use only.

10. Does J&K Bank provide car loan to joint borrowers?

    Yes, J&K Bank provides car loan to join borrowers.

11. What is the rate of interest on J&K Bank car loan?

    The rate of interest on J&K Bank car loan is as follows –

    • The fixed rate of interest is 10.20% percent per annum for individuals
    • The floating rate of interest is Base Rate plus 1% per annum
    • For corporates and firms, the fixed rate of interest is 10.70%

    These rates are changed by the bank from time to time.

12. Is there any concession on the interest rates for women applicants of J&K Bank car loan?

    Yes, there is a concession on the interest rates for women applicants of J&K Bank car loan. They get a rebate of 0.25 percent on the normal interest rates.

13. Can I apply for a car loan from J&K Bank online?

    Yes, you can apply for a car loan from J&K Bank online on the website of the bank.

14. What is the minimum age requirement for J&K Bank car loan?

    The minimum age requirement for J&K Bank car loan is 21 years.

15. What should be the maximum age of Salaried Employees or Contractual Employees at the time of their J&K Bank car loan maturity?

    The maximum age of Salaried Employees or Contractual Employees at the time of their J&K Bank car loan maturity should be 60 years or the retirement age (whichever is earlier).

16. What is the minimum period of employment that Salaried Employees or Contractual Employees should have in order to be eligible for a car loan from J&K Bank?

    The minimum period of employment that Salaried Employees or Contractual Employees should have in order to be eligible for a car loan from J&K Bank is 1 year.

17. What should be the minimum annual income of Salaried Employees or Contractual Employees to be eligible for a car loan from J&K Bank?

    Salaried Employees or Contractual Employees should have a minimum annual income of Rs.3, 00, 000 to be eligible for a car loan from J&K Bank.

18. What should be the maximum age of Professionals/ Self Employed Individuals/Agriculturists at the time of their J&K Bank car loan maturity?

    The maximum age of Professionals/ Self Employed Individuals/Agriculturists at the time of their J&K Bank car loan maturity should be 70 years.

19. What experience should Professionals/ Self Employed Individuals/Agriculturists have in order to be eligible for a car loan from J&K Bank?

    Professionals/ Self Employed Individuals/Agriculturists should have at least 3 years’ experience of their current business in order to be eligible for a car loan from J&K Bank.

20. What should be the minimum annual income of Professionals/ Self Employed Individuals/Agriculturists to be eligible for a car loan from J&K Bank?

    Professionals/ Self Employed Individuals/Agriculturists should have a minimum annual income of Rs.4, 00, 000 to be eligible for a car loan from J&K Bank.

21. What should be the maximum age of retired employees at the time of their J&K Bank car loan maturity?

    The maximum age of retired employees at the time of their J&K Bank car loan maturity should be 70 years.

22. What should be the minimum annual income of retired employees to be eligible for a car loan from J&K Bank?

    Retired employees should have a minimum annual income of Rs.2, 00, 000 to be eligible for a car loan from J&K Bank.

23. I am a salaried individual who plans to purchase a used car. What should be my maximum age at maturity, if I take a car loan from J&K Bank?

    If you are a salaried employee who plans to take car loan for a used car from J&K Bank, your maximum age at maturity should be 58 years. If the retirement age as per your institution is 60 years, then your age at loan maturity can be 60 years.

24. I am a self - employed individual who wants to purchase a used car. What should be my maximum age at maturity, if I take a car loan from J&K Bank?

    If you are a self- employed individual who plans to take car loan for a used car from J&K Bank, your maximum age at maturity should be less than 65 years.

25. Can I choose to take a car loan from J&K Bank on the basis of the on – road price of the car?

    Yes, you can choose to take a car loan from J&K Bank on the basis of the on – road price of the car. Here, apart from the ex – showroom price of the car, only the one time registration charge and the insurance premium for the first year will be considered.

26. What is the maximum amount that people can avail through J&K Bank car loan?

    People can avail a maximum of Rs.50 Lakhs through J&K Bank car loan.

27. What is the margin on J&K Bank car loan for new cars?

    The margin on J&K Bank car loan for new cars is mentioned below –

    • For permanent employees of State or Central Government, their undertakings and autonomous bodies who have a salary account with J&K Bank and have provided a letter of undertaking from their employer, the margin is 10 percent of the on – road or ex- showroom price of the car
    • For J&K Bank Gold and Platinum Current Account holders, the margin is 10 percent of the on- road or ex- showroom price of the car
    • For everyone else, the margin is 15 percent of the on- road or ex- showroom price of the car
28. Will my CIBIL score help me get a car loan from J&K Bank?

    If you have a good CIBIL score, then yes it will help you get a car loan from J&K Bank.

29. Does J&K Bank charge a processing fee from their car loan applicants?

    Yes, J&K Bank charges 0.5 percent of the loan amount as processing fee from their car loan applicants. This fee is a minimum of Rs.500.

30. What is the minimum tenure for J&K Bank car loan?

    The minimum tenure for J&K Bank car loan is 12 months.

31. What is the maximum tenure for J&K Bank car loan?

    The maximum tenure for J&K Bank car loan is 84 months.

32. Can I prepay the car loan that I have taken from J&K Bank?

    Yes, you can prepay the car loan that you have taken from J&K Bank.

33. Will J&K Bank charge a prepayment penalty in case I prepay my car loan?

    No, J&K Bank will not charge any prepayment penalty in case you prepay your car loan.

34. How much time does it take for J&K Bank to verify, process and approve car loan applications?

    If you qualify the eligibility criteria, have filled up the correct information in the car loan application form and submitted all the documents asked by J&K Bank, then they will verify, approve and process your car loan application very quickly. Once approved, the money will be disbursed within a few hours.

35. Who can I contact to get more details about J&K Bank car loan?

    To get more details about J&K Bank car loan, you can contact the customer care of the bank. To get in touch with them, please call up on the toll – free number of the bank. You can find the number on the website of the bank. You can also visit any branch of the bank to get details about their car loan offers.