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.
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.
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.
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.
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.
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.|
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.
The bank offers both fixed and floating interest rates. Further details in this regard can be obtained from the nearest branch.
You can repay in a term of your choice for up to 10 years, the same as standard offering.
There is no processing fee involved for such cases.
The bank offers to finance up to 75% of the costs involved, capped at 72 times the monthly net income/salary.