The Jammu and Kashmir Bank was established on 1st October in the year 1938, thanks to the commendable effort by the Maharaja Hari Singh of Jammu and Kashmir. The Maharaja had requested prominent Kashmiri financiers to be the board directors and stakeholders of the bank, the most outstanding of which were the Bhaghat clan and Abdul Aziz Mantoo and Pesten Gee, all of whom obtained key shares. The bank initiated its operations on 4th July 1939, almost a year after its launch, and was regarded the first of its kind and structure as a bank run by the State in India. What started off as a semi-State Bank with contribution from the capital as well as the public, attained the position of a scheduled bank and was announced as an ‘A’ Class bank in 1976 by the Reserve Bank of India.
J&K Bank offers its customers a specialised used car loan, helping them finance a pre-owned 4-wheeler. Interest rates for this loan depend on the date of sanction, with an MCLR and Base Rate platform in place. Existing borrowers have the flexibility to choose between either of these systems, while new borrowers will automatically be moved to MCLR based rates.
Jammu and Kashmir Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
J&K Bank has introduced MCLR based benchmark rates following guidelines from the RBI. These rates are indicative of current scenarios, highlighting the operating costs, repo rate, CRR, etc.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates – May 2016
The interest payable on a used car loan depends on the tenure and MCLR. Jammu and Kashmir Bank can modify the interest, choosing to add a certain percentage over and above the existing MCLR, depending on certain factors.
Jammu and Kashmir Bank Base and Prime Lending Rates (For existing borrowers)
|Base Rate||9.50% per annum, effective July 1, 2015|
|Prime Lending Rate||14% per annum, effective July 1, 2015|
Jammu and Kashmir Bank interest rate for used cars (Based on Base Rate)
Existing customers who do not wish to migrate to the MCLR based platform can continue paying interest calculated on the basis of the base rate. The table highlights the different rates applicable.
|Less than 4 years||15.25% per annum|
|More than 4 years||16.00% per annum|
Note: Jammu and Kashmir Bank holds the right to modify/change interest rates without prior intimation. Rates mentioned here are as of June 7, 2016. Potential borrowers are advised to check prevailing rates at the time of applying.