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Car Loan

About Jammu & Kashmir Bank
 

Jammu & Kashmir Bank (J&K Bank) was founded in the year 1938 in Srinagar, Jammu & Kashmir. The bank was established as a Semi-State Bank under the control of State Government. The bank is a universal bank for Jammu & Kashmir and it works as a specialized bank for the rest of the country. In 1971, the J&K Bank received the status of a scheduled bank and in 1976 it was stated as an "A" Class bank by the Reserve Bank of India and is also the only bank from private sector which is RBI’s agent for banking business, and collects central taxes for CBDT apart from carrying out the banking business of the Central Government. The J&K Bank is rated P1+, indicating the highest degree of safety by Standard & Poor and CRISIL.


J&K Bank has the motive of delivering innovative financial solutions for small and medium enterprises, household, operating on the principle of 'socially empowering banking'. The Bank has a network of 689 branches and 613 ATMs throughout the country.


Jammu & Kashmir Bank Car Loan


Buying your own car is an important turn in one’s life and a major expense as well. Those who do not have enough resource to arrange for a large amount all together and fund the vehicle they wish to buy, availing car loan to buy the car and repay to the bank in convenient installments. The J&K Bank car loan schemes come with pre-approved car loans, pre-owned car loans, are flexible and simple for purchasing new as well as pre- used cars, making them one of the best car loans in India. Moreover, J&K Bank car loan offers you the required amount to pay for the vehicle at low interest rates and flexible repayment options and tenures.


Jammu & Kashmir Bank Used Car Loan


Buying a car involves a considerable amount of money, but only a few people have the capability to pay such a big amount to buy a vehicle. Therefore, J&K Bank car loan enables buying used cars at low interest rates and with flexible repayment options to its customers.


J&K Bank disburses car loans that are attractive as they provide competitive rates of interest and high car loan amount eligibility on deals on car loans to its customers, helping them buy their dream car. Accompanied by quick loan disbursals, the requirements for J&K Bank car loan are simple, and these loans are available for all groups of people, be it the people working in the public sector or private sector, whether self-employed, professionals, agriculturalists, or Business owners. J&K Bank Car Loans include no prepayment charges.


Features of J&K Bank Car Loan
 

  • J&K Bank car loan comes for new and used cars to individuals and proprietorship concerns
  • Processing charge on J&K Bank car loan is 0.50% of loan amount (a minimum of Rs 500 is charged)
  • J&K Bank car loan has flexible repayment options ranging from 12 to 84 months
  • Rate of interest on a J&K Bank car loan can be fixed or floating
  • J&K Bank car loan comes with lower rate of interest for women borrowers
  • No prepayment charges applicable on J&K Bank car loan
  • The maximum limit of the loan amount for J&K Bank car loan is Rs 50 lacs

Eligibility for J&K Bank Car Loan

A Car loan is the best way to buy a car if you are having limited finance; all you need is to be eligible for a J&K bank car loan. The following individuals are eligible for a J&K Bank Car Loan:
 

  1. Salaried individuals, employees on contractual basis (in the contractual job for a period not less than 1 year and the remaining contract period should be longer than the chosen repayment period)
  2. Professionals, Self Employed Individuals & Proprietorship Concerns.
  3. Persons engaged in agricultural and allied activities.
  4. Retired Employees of State / Central Government, Public Sector Undertaking.
  5. Joint borrowers are also eligible.

*Employees on ad-hoc basis are not eligible for the loan.


Eligibility for A
 

  • Age of the applicant should be minimum 21 years and maximum 60 years or age of retirement whichever is earlier (at loan maturity)
  • The applicant must have been in current employment for a period of not less than 1 year.
  • Minimum gross annual income must be Rs 3.00 lakhs

Eligibility for B & C
 

  • Age of the applicant should be minimum 21 years and maximum 70 years (at loan maturity)
  • The applicant must have at least 3 years in business.
  • Minimum gross annual income must be Rs 4.00 lakhs

Eligibility for D
 

  • Maximum age of applicant at loan maturity must be 70 years
  • Minimum gross annual income must be Rs 2.00 Lakhs

Eligibility for E
 

  • Maximum age of Applicant at loan maturity: 70 years
  • Minimum Gross Annual Income:  Rs 2.00 Lakhs

Eligibility for J&K Bank Used Car Loan


Salaried individuals:
 

  • The applicant should be at least 21 years old
  • He should be below 58 years of age at the time of loan maturity
  • The minimum employment period must be of 3 years.
  • In case an applicant draws salary from a J&K bank account, can provide a letter of undertaking from the employer and will then be required to have a minimum employment period of 2 years.

Self-employed individuals:
 

  • The applicant should be above 21 years of age at the time of loan application
  • He should not be more than 65 years old during the time of loan maturation
  • He should be in the same business for at least 3 years

Partnership Firm:
 

  • Should have been in existence for at least 3 years.

Private Company or Public Limited Company:
 

  • Limited Companies should have been in existence for at least 3 years.

Check Your J&K Bank Car Loan Eligibility:
 

With a plethora of J&K Bank plans available, you can check your eligibility for J&K car loan online with the Car Loan Eligibility Calculator by PaisaBazaar. Subsequently, you can apply for the requisite J&K Bank car loan online.

Quantum of Finance

  • Maximum Finance offered by J&K Bank car loan for purchase of Car at Ex-Showroom Prices:
     
  • The cost that the dealer charges for acquiring the car from the manufacturer and the excise duty that it has to pay to the government on procurement, combined, is called the Ex-showroom price. The excise duty charged by the state government on cars is known as the supply price of a car.
  • 3 times and 36 times of the net annual income of the non-salaried applicant and the net monthly income of salaried applicants respectively is the maximum amount of finance offered
  • However, the maximum finance limit is only 2 times of the net annual bank or 24 months’ salary for employees on contract basis and pensioners, employees of private organizations
  • Gross deductions of Loan EMIs of existing as well as proposed ones should not go beyond 60% of income.
  • The ceiling of the loan amount shall be Rs 50 Lakh.
     
  • Maximum Finance offered by J&K Bank car loan for purchase of Car at On-Road Prices :
     
  • On-Road price is the actual amount to be paid to the dealer to buy the car. The On-Road price is inclusive of a registration charge, lifetime road tax, insurance charge that is renewed periodically and logistics charges, on top of the ex-showroom price.
  • 36 months net monthly salary of the salaried applicant or 3 times net annual income of non-salaried applicant, equals to the maximum finance offered by the bank.
  • However, in case of employees of private organizations, employees on contract basis and pensioners, the maximum finance shall be limited to 24 months net monthly salary or 2 times net annual income.
  • Applicants from eligibility criteria as depicted at a, b, c & d who do not fulfill the income criteria as laid down in the scheme but have an annual income of more than Rs. 2.00 lakh, may be granted maximum finance up to 24 months net salary or 2 times net annual income.
  • The one-time Registration Charges and Insurance premium (Optional) for first year shall be financed as a part of the total J&K Bank car loan to be provided subject to maximum permissible amount of limit of finance for which a borrower is eligible under the relevant clause of this scheme.
  • The J&K Bank car loan amount reflected in the loan account shall be inclusive of loan amount granted for Registration and Insurance.

Applicable Interest Rates on J&K Bank Car Loan

J&K Bank Car loan interest rate (Fresh Cars) under fixed interest rate:

  • For Individuals- 11.25 % per annum with monthly rests
  • For Non-Individuals, Companies & Firms- 11.75 % per annum with monthly rests

J&K Car loan interest rate (Used Cars) under floating interest rate:
 

  • For Individuals- MCLR+1.00 % per annum with monthly rests
  • For Non-Individuals, Companies & Firms- MCLR +1.50 % per annum with monthly rests

Women borrowers can avail a car loan interest rate which is 0.25% less than the effective rate, which makes it:
 

  • 11 % per annum with monthly rests under fixed interest rate
  • MCLR+0.75 % per annum with monthly rests under floating interest rate

Loan Repayment:
 

  • Loan Repayment Period for New Car Loan

J&K Car Loans come with flexible repayment options ranging from a period of 12 months to 84 months in the form of EMIs or Equated Monthly Installments. Monthly car loan payments schedule shall be fixed for the entire J&K Bank car loan amount, when availing the On-road price option, which shall include Ex-showroom price, the one-time registration charges and insurance premium for the first year only.
 

  • Loan Repayment Period for Used Car Loan

Maximum repayment tenure for a car loan of 72 months is offered on Car Loan by J&K Bank for vehicles which are less than 3 years old. Whereas, on cars older than three years and up to 5 years old, maximum repayment period is of 48 months car loan provided by J&K Bank.

Documents Required for J&K Bank Car Loan

The credit history/ score and background profiles of individuals are important for a bank lending loan, and determining car loan amount eligibility, because it reflects the worthiness and capability of the individual repaying the loan. Getting a car loan is easy and simple and now a days, gets an instant approval, provided an individual submits the complete list of required documents for J&K bank car loan. Car loans offered by J&K Bank depends on factors like income of the individual, price of the car, car model, credit history of the individual and his/ her employment profile. Given below is the list of documents to be submitted for a quick approval of a J&K Bank car loan.
 

  • In case of both new car loan and Used Car Loan application, a partnership firm or private limited or public limited company should have an existence from at least last 3 years and must submit a proof for the same.

Salaried Individuals:
 

  • 3 months’ salary slips with Form 16
  • Latest 6 months bank statement
  • PAN Card copy
  • Current Address Proof DL/ Voter ID/ Passport/ Aadhaar Card
  • Identity Proof
  • Photographs
  • Car Quotation from Showroom

Self Employed Individuals:
 

  • 2 years ITR (minimum 2 lacs)
  • Latest 6 months bank statement
  • PAN Card copy
  • Current Address Proof DL/ Voter ID/ Passport/ Aadhaar Card
  • Identity Proof
  • Photographs
  • Car Quotation from Showroom

Calculating EMI for J&K Bank Car Loan

Calculating your car loan EMI or equated monthly installment in advance helps a person to plan and decide his/ her budget and determine his/ her repaying capability before applying for the J&K Bank car loan. To calculate EMI for J&K Bank Car Loans, one can use the car loan EMI calculator in the ‘finance tools’ section on PaisaBazaar’s website. You are required to enter information such as the amount of loan, the rate of interest and repayment tenure of the loan in the J&K Bank Car loan EMI calculator for accurate results. You can also check various combinations for repayment using this Car Loan EMI Calculator.

J&K Bank Car Loan FAQs

1. What are the options for repayment tenure for Car Loan by J&K Bank?
 

A. The repayment tenure for a J&K Car Loan ranges from 12 to 84 months. The loan applicant has the freedom to choose the tenure according to him at the time of applying for the J&K Bank Car Loan.


2. Can I get a car loan jointly with someone? What are the conditions that apply?

A. Yes, you can jointly apply for a J&K Bank Car Loan. In this case, it is ensured that at least one of the joint borrower(s) is able to pay the loan along with interest up to the maximum prescribed age of 60 or 70 years.


3. Can I repay my car loan before the tenure?


A. Yes, you can repay your car loan before the tenure with no prepayment charges.


4. J&K Car Loan can be availed for which cars?


A. J&K Bank provides car finance plans for purchase of new Cars, Van, Jeep, SUV and MUV for private use only.


5. How much processing fee and prepayment charge is associated with a J&K Car Loan?


A. J&K Bank charges 0.50% of loan amount subject to a minimum of Rs. 500/- as processing fee for a car loan. There is no prepayment charge for a J&K Bank Car Loan.


6. Is any processing fee applicable on J&K Bank car loan?


A. The processing fee, charged on a minimum of Rs.500, is 0.50% of the J&K Bank car loan amount.


7. Is there a penalty for prepayment?


A. Prepayment is allowed only after 6 months of taking a J&K Bank car loan. 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. However, in case of a used car, there is a 2% penalty for prepayment of the J&K Bank car loan.


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


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


9. What is the maximum amount offered by J&K Bank on used car loans?


A. The maximum loan amount offered by J&K bank equals to 2.5 times of the net annual income or 15 lacs, whichever is lower. If married, the spouse's income is also considered, provided the spouse guarantees or becomes a co-borrower of the loan. J&K Bank car loan amount for used vehicles shall be subject to a maximum limit of 15 lacs.


10. How many vehicles can be availed by a car loan form J&K Bank?


A. The maximum number of vehicles to be sanctioned to a single borrower under Used Car Finance at any point of time must not be more than 2 vehicles. In this scenario, the loan amount is subject to maximum prescribed limit of Rs 15 lacs.


11. On what basis is the valuation of a Vehicle done for Used Car loans?


A. The value of the vehicle is ascertained on the basis of present market value of the new car of same variety and configuration less the depreciation, which is as follows:

 

Age of the vehicle

% Of Depreciation for fixing value.

Not exceeding 6 months.

5%

Exceeding 6 months but not exceeding 1 year.

15%

Exceeding 1 year but not exceeding 2 years.

20%

Exceeding 2 years but not exceeding 3 years.

30%

Exceeding 3 years but not exceeding 4 years.

40%

Exceeding 4 years but not exceeding 5 years.

50%

 

 

 

 

 

 

 

 

 

 

 

 

12. What other vehicle loan schemes are available with the Jammu and Kashmir Bank?
 

A. Apart from the New Car Loan Scheme and the Car Loan for Used Cars, Jammu and Kashmir Bank also offers the following vehicle loan schemes:
 

  • Commercial Vehicle Finance
  • Commercial Vehicle Finance (Used Vehicles)
  • School Bus Finance
  • Passenger Bus/mini-bus Finance. ( For Doda, Bhaderwah & Kishtwar)
  • Old Passenger Buses/mini-buses Finnance ( For Doda, Bhaderwah & Kishtwar only)
  • Two-Wheeler Finance