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    Jammu and Kashmir Bank Home Loan Reviews

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    Jammu and Kashmir Bank Home Loan

    Home Loan BYTES FROM OUR KITCHEN

    Jammu & Kashmir Bank Home Loan:

    Housing is one of the perennial requirements of life since it not only ensures shelter over our heads but also offers to double up as an investment instrument offering attractive returns over a period of time. Buying a home or a plot is not an easy task since it comes with huge costs, best answered through credit by means of a housing loan.

    This Srinagar based bank offers financing for a wide range of housing requirements such as house/flat purchasing, renovating and other related activities. It offers loans with customer friendly features at affordable rates.

    Feature & Benefits of Jammu & Kashmir Bank Home Loan

    Pleasing quantum of loan:

    The loan offered is done on the basis of a variety of input factors which includes the “type of property involved and the income. The following points throw further light in this regard.

    • For construction of a house or purchase of a house/flat, the loan offered by J & K bank is up to 72 times the net income/salary of the applicant.
    • State/Central government pensioners can take home a loan of up to 36 times the gross monthly pension subject to the condition that the deductions do not exceed 50% of the pension received.
    • For renovation or repair loans, a maximum loan of Rs.15 lakhs or 36 times of the net monthly income/salary (whichever is higher) is offered by the bank.
    • For land purchase, the loan amount offered will be a maximum of 36 times their monthly net income/salary, up to a maximum of 75% of the land cost.

    Flexible repayment tenure options:

    The bank offers a maximum of 10 years to repay the borrowed loan amount in EMIs (Equated Monthly Installments). This includes the moratorium period of 3 months. The borrower is free to choose a tenure as per their convenience.

    High loan margin:

    For loan amount up to Rs.20 lakhs, the bank offers a funding of up to 85% of the costs involved, implying a burden of less than 15% on the borrower. For loans above Rs.20 lakhs, the margin is up to 20% since the bank offers up to 80% funding.

    For renovation, it offers 100% funding for loans up to Rs.5 lacs, 90% for loan disbursals between Rs.5 to Rs.10 lacs and 85% for loans above 10 lacs.

    Processing Fees:

    J&K bank charges a nominal processing fee billed at the rate of just 0.25% of the loan amount with a cap of Rs.10,000, subject to a minimum of Rs.500. No processing fee is levied in case of takeover of loans from other banks.

    J & K Bank Home loan interest rate:

    The EIR (Effective Interest Rate) is made up of the base rate plus a small percentage, determined on the basis of the borrowed loan amount. The table below provides a breakup. Make sure to call the nearest bank for latest interest rates before applying for a housing loan.

    Loan Amount Interest Rate
    Upto Rs.100 lacs Base rate only
    Rs.100 to Rs.300 lacs Base rate + 0.20%
    Above Rs.300 lacs Base rate + 0.35%

    Note: The current base rate is 9.50%, subject to periodic revision.

    Eligibility Criteria for Jammu & Kashmir Home Loan:

    Salaried individuals

    Individuals working in state/central government departments should be a confirmed employee.

    Individual applicants from the private sector should have atleast 3 years in service.

    Self-employed professionals Professionals such as doctors, architects and lawyers should have an experience of atleast 3 years in the current profession.
    Businessmen & Women Individuals falling under this category should be into the business for at least 3 years with previous dealings with the bank.
    Pensioners State/Central government pensioners should be drawing monthly pension via J&K bank. In such cases, the spouse of the applicant should be alive and be eligible for family pension.

    Collateral Requirement:

    The house/plot procured is mortgaged and acts as collateral until full repayment of the loan. In addition, no third party security is required for government employees drawing their salaries through J&K bank. Otherwise, if the employer of the applicant undertakes an agreement to credit monthly salary into J&K bank account, no additional collateral is required.

    Frequently Asked Questions:

    1. Does J&K bank only offer “Fixed” rate on home loans?

      The bank offers both fixed and floating interest rates. Further details in this regard can be obtained from the nearest branch.

    2. Is there a cap on the repayment tenure for renovation loans?

      You can repay in a term of your choice for up to 10 years, the same as standard offering.

    3. Does the bank charge a processing fee for takeover of an existing loan from another bank?

      There is no processing fee involved for such cases.

    4. I would like to buy a plot of land. How much is the maximum loan offered by J&K bank?

      The bank offers to finance up to 75% of the costs involved, capped at 72 times the monthly net income/salary.  

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