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Home Loan

Jammu & Kashmir Bank offers home loan to different kinds of applicants which are discussed below:


Purpose:


An applicant can apply for Housing Loan Scheme for any of the following purposes which are listed below:
 

  1. For construction of residential house or purchase of any house or flat, means  if an applicant wants to construct a residential house  or purchase a house or flat he or she can take a loan under this scheme.
  2. If an applicant who has already availed Jammu and Kashmir housing loans wants any supplementary or additional finance for any kind of repairing or renovation, addition or alteration can also avail these Jammu and Kashmir ltd. home loan schemes.
  3. Loan can be taken for purchase of Land for residential purpose, which should not be more than 5440 sq. ft. or 1 kanal for housing purpose.
  4. If loan is already taken for purchase of land for housing purpose, borrower can take loan for construction of a residential flat on the same land.
  5. If applicant has not taken any Jammu and Kashmir housing loans from the bank, then also he or she can take loan for any repairing or renovation or alteration or addition.

Quantum of Loan:
 

  1. In case loan is taken for new construction of residential house or purchase of any house or flat: An applicant can take a maximum of 72 times of his or her net monthly income or salary.
  2. In case loan taken for any supplementary or additional finance for any kind of repairing or renovation , addition or alteration who has already availed housing loan from the bank, an applicant can take a maximum amount of loan, which shall be lower of the following:
     
    1. Rs. 25 lacs, or 36 times of his or her net monthly income or salary, subject to the condition that total loan by the applicant  (i.e. BOS of existing loan + sanctioned amount of additional loan) as on date of sanction is within the overall ceiling of housing loan limit of 72 times of his or her net monthly income or salary.
       
  3. In case loan is taken for any purchasing of Land which should not be more than 5440 sq. ft. or 1 kanals for housing purpose an applicant can take a maximum amount of loan, which shall be lower of the following:
     
    1. Rs. 15 lacs, or 36 times of his or her net monthly income or salary or 75% of the cost of the plot of land.
       
  4. In case loan is taken for repairing or renovation or alteration or addition but any housing loan has not been availed from the bank, an applicant can take a maximum amount of loan, which shall be the lower of the following:
     
    1. Rs. 25 lacs, or 36 times of his or her net monthly income or salary
       
  5. If the applicant is any State or Government Pensioner: 36 times of the gross monthly pension subject to the condition that Jammu and Kashmir home loans sanctioned shall be fully repaid by the time the pensioner attains the age of 70 years and the total deductions do not exceed 50% of their take home monthly pension.

Commercial Premises Finance
 

Jammu and Kashmir Bank’s Commercial Premises Finance is a kind of term loan where monetary loans offered by Jammu and Kashmir Bank to all the applicants for the acquisition and usage of commercial properties. That Jammu and Kashmir bank home loan is repaid in a regular pattern over a certain period of time. The commercial properties may be shops, offices etc which are rented out by different bodies like Government, Semi-Government and also self-governing bodies.


Moratorium


Jammu and Kashmir Bank’s commercial premises finance offers a special holiday period to all the people who have made the home loan application. This period is called the moratorium period where the applicant does not have to pay the monthly instalments instantly on the loan taken. The EMI is only payable after 1 month from the date of the first disbursement of the Jammu and Kashmir bank home loan.

Eligibility

For Jammu and Kashmir Home Loan
 

Before applying for a Housing Loan from the bank, you need to check whether you are eligible to apply for Jammu and Kashmir Bank Home Loans. There are necessary criteria to be fulfilled before the bank grants you a Jammu and Kashmir limited home loan and every applicant is required to match the stipulated criteria. Below list has Jammu and Kashmir ltd. home loan eligibility criteria required for the applicant to match so that he or she will be eligible to seek a home loan from Jammu and Kashmir limited.
 

  1. Any individual having a regular income is eligible for taking a Jammu and Kashmir limited home loan from the bank. Having regular income is a criterion which means that the person is having a fixed income and therefore he or she can easily pay off the required EMIs.
  2. For salaried employees: Applicants should be a confirmed employee of a Government department and should have been working for minimum of 3 years in Public Sector Undertakings/Autonomous Bodies / Reputed Companies /Bodies.
  3. For professional or self employed: An applicant should have a minimum of 3 years standing  experience in the professions like doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretaries, management consultants, advocates etc.
  4. For Businessmen or women: the applicant should be an individual having dealings with the bank and having a minimum of 3 years of experienced.
  5. For pensioners: If the applicant is any State or Government Pensioner drawing monthly pension from the bank and whose spouse is alive and is eligible for family pension.
  6. For Others: Jammu and Kashmir limited home Loan can be granted to an applicant in for repairs or renovation or alteration or additions to an ancestral property in the name of either father or mother, who is dependent on son, by taking the son as a co-borrower and the son’s income can be taken for computation of quantum of Jammu and Kashmir home loan. However, in all such cases mortgage of house shall be mandatory and all the legal heirs of the father/mother should stand as guarantors to the amount of housing loan.
  7. Joint family members or joint borrowers can take Jammu and Kashmir home loan if they have regular income.
  8. Non Resident Indians can also avail Jammu and Kashmir home loan under this scheme, provided they show that they have regular earnings.

For Commercial Premises Finance


A variety of people are eligible to take up Jammu and Kashmir’s Commercial Premises Finance. They may be individuals, proprietorship concerns, professionals or specialised personnel who are self-employed, partnership concerns and also public limited as well as private limited companies. But one thing has to be kept in mind that the persons applying for Jammu and Kashmir’s Commercial Premises Finance must have a running business that is working for at least 3 years.


Jammu and Kashmir’s Commercial Premises Finances’ measure of the monetary benefit is 4 times net income over the period of a year. But, this income should not exceed the maximum of Rs. 50, 00, 000 lacs. On the other hand if the person applying for Jammu and Kashmir’s Commercial Premises Finance is a married man, then the income of that person’s partner or spouse will also be taken into consideration. Again, in case of the requirement of margin, only purposeful money that is paid is considered. That again equals to 25% of the premium that is chartered.

Rate of Interest

Jammu and Kashmir Home Loans Interest rate:


Jammu & Kashmir offers loan at different rates for different amounts of Jammu and Kashmir home loan. In case the applicant has taken a loan for less than or equal to 50 lacs the rate of interest charged by bank will be the Base rate, However if loan amount exceeds 50 lacs but is less than or equal to 75 lacs then the bank will charge 0.75% extra on the base rate. Similarly for Loan amounts exceeding 75 lacs the bank will charge an extra 1.50% on the Base rate. A table is given below for better understanding of the Rate of Interest.
 

Up to Rs 100.00 lacs

One Year MCLR

Above Rs100.00lacs and up to Rs300.00 lacs

One year MCLR+0.20%

Above Rs300.00lacs

One year MCLR+ 0.35%


For Commercial Premises Finance
 

Jammu and Kashmir’s Commercial Premises Finance’s interest rate is applicable on different amounts of loans ranging between Rs. 2 lacs to Rs. 20 Lacs. The rate of interest is different for different loan amounts such as for loan amount up to Rs. 15 lacs the interest rate is 12.70%. For amount more than Rs. 15 lacs  an internal rating is done to arrive upon appropriate interest rates.


Processing Fee and charges
 

  • As per banks policy, a processing charge of 0.25% of the loan amount with a minimum of Rs.500 and a maximum of Rs.10, 000 plus service tax, is levied.
  • There are no processing fees in case of takeover of loans from other banks or financial institutions.
  • Sanctioned letter issued to the borrower should mention the processing charges.

Margins:


Following are the list shown below of margins in different cases:
 

In case the Jammu and Kashmir bank home loan is taken for fresh construction or purchase of residential house.
 

 Loan Amount

Margin

Up to Rs. 30.00 lakhs

10%

Between Rs. 30 lakhs up to  Rs.75 lakhs

 20%

Above Rs. 75 lakhs

25%


In case the Jammu and Kashmir bank home loan is taken for Supplementary or repairs or renovation or additions or alterations:


For Jammu and Kashmir home Loans Up to Rs.5.00 lacs: NIL


For Jammu and Kashmir home Loans above Rs.5.00 lacs & Up to Rs.10.00 lacs: 10%.


For Loans above Rs.10.00 lacs: 15%

Security

For Jammu and Kashmir Home Loan


The bank requires a security in order to issue the loan to the applicant. As per the Banks policy the required security is of 2 types which are explained below:


1. Collateral:
 

a. Collateral security or 3rd person guarantee is not required for those government employees who draw their salary through the bank and the employer deposits their employee salary directly in the employee salary account.


b. For loans up to RS. 2.50 lacs no collateral security is required.


2. Primary:


Primary security of Equitable or Registered Mortgage of the house or flat which is to be constructed or purchased is required by the bank. In case of independent house, House property is to include the land underneath & the appurtenant.


The title of the property should be clear and marketable.


In some cases the mortgage is not immediately available:


1) The house or flat or under-construction


2) House or flat or which is yet to be constructed


3) House or flat which is being purchased from the Housing Board or Co-operative Society or Development Authority or Construction Company or Builder


In such cases, the title or conveyance deed is executed in favour of purchaser only after of full or partial construction is completed and the purchaser makes full payment of the cost of house or flat.  Subsequently, a tripartite agreement shall be executed amongst the following in case of mortgage of house or flat which cannot be created immediately and / or possession of a house or flat which is not given:


1) Housing Board or Development authority or Co-operative Society or Construction Company or Builder,


2) The Borrower and


3) The Bank wherein the Housing Board or Development Authority or Co-operative Society or Construction Company or  Builder undertakes that the title to house or  flat shall be transferred to the Borrower immediately on receipt of entire sale consideration and the Bank’s lien shall also be marked in their/ his records, thereafter to be followed by execution of mortgage deed in favour of the Bank once the project has been completed and Sale Deed (Deed of apartment/Conveyance Deed in case of Flats) has been executed. Charge to be registered in favour of the Bank with the concerned authorities. Besides tripartite agreement an affidavit-cum-undertaking from the Housing Board/ Development Authority / Co-operative Society/ Construction Company/ Builder to the effect that the construction shall be as per the sanctioned plan & building bye laws, to be obtained.


For Commercial Premises Finances


Jammu and Kashmir Bank’s commercial premises finance is a type of home loan available at Jammu and Kashmir Bank to all the applicants but they are supposed to keep certain pre-owned items in the form of collateral to the bank. They act as a security to the bank. The two basic types of securities in Jammu and Kashmir Bank’s commercial premises finance are as follows:
 

  • Primary Security- In the primary security, the applicant must mortgage the lease-hold rights of the property that was previously acquired by him using the Jammu and Kashmir bank home loan amount.
  • Collateral Security- Collateral security on the other hand is a type of security where there is an involvement of the third party that acts as a guarantor of two persons or applicants. Again, any property that is immovable can also be mortgaged but the nature of that property must be with the satisfaction of the branch manager of the Jammu and Kashmir Bank.

Repayment

For Jammu and Kashmir Home Loan


The loan amount that is Principle amount along with interest shall be repaid in Equated Monthly Instalments (EMIs). In case of floating interest rate, the loan after the moratorium period shall be re-fixed with every increase or decrease in interest rate during the period of loan. However, in case of decrease in the Jammu and Kashmir limited home loan interest rates, EMI shall not become less than the amount fixed at the time of initial sanction


The repaying capacity of the borrower should be taken in to consideration at the time of repayment period and the EMIs calculated for repayment shall be decided on the merits of each case on a realistic basis.


In a maximum period of 10 years which is the Jammu and Kashmir bank home loan tenure, including moratorium period of 3 months , the Equated Monthly Instalments (EMIs)of  the Jammu and Kashmir home loans taken for carrying out repairs or additions shall be repaid


For Commercial Premises Finances


The Jammu and Kashmir’s Commercial Premises Finance home loan offers the applicants the facility to repay their respective loans in equal instalments that are payable on a monthly basis. The instalments can be 60 or also 84 in numbers depending on the maturity loan tenure. Again, an option of prepayment of the Jammu and Kashmir bank home loan amount is also allowed on the Jammu and Kashmir’s Commercial Premises Finance. But, the applicant must bear a penalty of 1% of the total amount that was being pre-paid by him.

FAQs

1. Who all are eligible to apply for a Jammu and Kashmir home loan under the Commercial Premises Finance?


A. A host of different types of persons can apply for a Jammu and Kashmir limited home loan under the Commercial Premises Finance scheme. They are as follows:
 

  • Individuals earning regular salaries.
  • Professionals or persons who are self-employed like doctors, engineers, teachers etc.
  • Individual businessman as well as business women.
  • Pensioners.
  • Joint borrowers.
  • NRIs.

2. Is repayment facility offered to the applicants?


A. Yes, the Jammu and Kashmir Bank’s Commercial Premises Finance provides the option of repayment to all the applicants applying for Jammu and Kashmir Housing loan. The applicant must repay the principal loan amount along with the interest on that amount every month. This system of monthly loan payment is popularly known as Jammu and Kashmir Bank home loan EMI or Equated Monthly Instalments.


3. Are there any loan processing charges involved in order to process the loan payment?


A. Jammu and Kashmir Bank’s Commercial Premises Finance process is not time consuming but the applicant must bear a nominal charge for the loan process to take place. 0.25% of the total amount of loan that was taken by the applicant which should be a minimum of Rs. 500 and a maximum of Rs. 10,000 is applicable. Not only this, a certain amount of service tax is also levied. But, if the loan amount is undertaken from any other bank, then no additional cost in the form of loan processing charges are not applicable to the applicant on the loan amount.


Applying for a Housing Loan from Jammu and Kashmir Bank


The Jammu and Kashmir bank home loan is available on the online portal Paisabazaar.com through which it can be easily applied for. The documents for home loans would later have to be submitted once the application is complete.