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Personal Loan

J&K bank has made personal loans available to all applicants in a lot of variants designed to meet specific needs of the individuals. Jammu and Kashmir Bank offers an array of options for Personal Loan and can be availed by one and all.


Key Features of J&K Personal Loan:
 

8 types of personal loans are issued by the bank:
 

  1. Consumer Loan
  2. Saholiat, Saral Finance
  3. Saholiat, Saral finance for Pensioners
  4. Solar lighting and photo voltaic Finance
  5. Laptop, PC Finance
  6. J&K Festival Personal Loan
  7. Scooty Finance for Girls/Ladies.
  8. Smartphone finance

Consumer Loan

  • This loan is issued for the purpose of purchasing consumer durables such as Desktop Computer ( P.C ), Laptop, Motor Cycle, Color TV,DVD Player, Scooter, Air Conditioner,  VCR, Generator, Washing Machine (automatic), ,  Dish Antenna, DTH Equipment,  Kerosene Room Heater, Cooking range, Refrigerator  Washing machine, CD Players, Cassette Players,  Geyser,  Cooler, Vacuum cleaner, Water Filter cum purifier,  etc.
  • The minimum value of loan granted is Rs.3000 while a maximum amount of Rs.40000 can be granted per article.
  • Amount of J & K Personal Loan: The maximum amount of loan depends upon the net monthly salary and the number of articles being purchased. The amount of loan is fixed at Rs.75000, subject to 12 times of the net monthly salary of the individual.
  • Security: The bank requires collateral against every loan that it issues.

Repayment Period:


The J & K Personal loan should be repaid within a maximum of 5 years, i.e. the individual availing of the loan should ensure to repay the instalments within 60 months of availing the loan Processing charge: J & K Personal loans are issued without any cost to the applicant. Margin Requirements: The bank requires a minimum margin standing at the rate of 25%. The bank requires hypothecation on the article being financed by the bank as primary security. The bank may also demand for a third party guarantee as secondary security.

Saholiat /Saral Finance

  • J & K offers Personal loan to all the permanent employees of govt. undertakings, whether state based or central, Public sector undertakings, both state and central as well autonomous bodies and reputed institutions.
  • J & K Personal loans are disbursed in cash.
  • However, the applicant may also apply for a revolving type facility, subject to certain conditions. Under this facility, the amount of outstanding J & K Personal loan can be restored to the entire limit of the sanctioned amount, if the applicant wishes to do so. However, certain important conditions have to be fulfilled in order to avail this facility. The list of conditions includes:
     
    • Payment towards at least 60% of the principal outstanding should have been done by the applicant at the time of applying for this facility i.e. the total outstanding amount should have been reduced to 40% of the sanctioned J & K Personal loan amount.
    • At the time of availing such facility, the applicant must make sure that the remaining period of his service is sufficient enough i.e. the retirement age of the applicant should not be nearing. This condition is laid by the bank in order to make sure that the remaining period of service of the applicant is sufficient to pay off the entire loan within that period. Payment of the loan post retirement is not acceptable to the bank.
    • A Fresh DP Note will have to be issued for issuance of full amount of J & K Personal loan.
    • The borrowers should not have had defaulted more than two installment payments in his existing loan tenure for J & K Personal Loan, i.e. he should not have arrear payments more than two times in the current loan.
    • An undertaking duly signed by the current drawing and disbursing authority stating that the outstanding from the bank and the monthly obligations of the applicant along with a clear intimation to the bank about their transfer should be collected by the applicant. This undertaking has to be forwarded to the next drawing and disbursing officer.
       
  • Amount of Loan: The maximum amount of loan depends upon the gross monthly salary. The amount of loan is fixed at 36 times of the gross monthly salary of the individual, subject to a maximum of Rs.20 lakhs.
  • Repayment Period: The repayment period of the loan is set at a maximum of 7 years, i.e. the applicant has to pay off the entire loan within a period of 84 months. However, the repayment period cannot exceed the applicant’s retirement age. The entire loan has to be paid off before the scheduled retirement of the applicant or before the completion of 84 months of having availed the loan, whichever is earlier.
  • Margin Requirements: The bank does not have any minimum margin requirements.

Saholiat/Saral Finance for pensioners or J & K Pension loan

  • These J & K Pension loans are extended to all retired pensioners who had been employed with govt. organizations, whether central or state and have been drawing regular pension from the bank’s branch.
  • This loan is disbursed in cash.
  • The bank does not demand an explanation for the purpose of the loan. This loan can be used for any purpose as deemed suitable by the applicant.
  • Amount of Loan: The maximum amount of loan to be sanctioned depends upon the age of the applicants.
  • In case of applicants below the age of 65 years, the bank issues J & K Personal loans amounting up to 18 times of their net monthly pension, subject to a maximum of Rs.2.5 lakhs.
  • In case of applicants between the ages of 65 years to 70 years, the bank issues J & K Personal loans amounting up to 12 times of their net monthly pension, subject to a maximum of Rs.1.5 lakhs.
  • In case of applicants above the age of 70 years, the bank issues J & K Personal loans amounting up to 9 times of their net monthly pension, subject to a maximum of Rs.70000.
  • Margin Requirements: The bank does not have any minimum margin requirements.
  • Security: The bank requires collateral against every loan that it issues.
  • The bank requires a substantial guarantee by any other family member or by the spouse of the applicant, eligible for receiving pension in case of family pension scheme.
  • The bank may also demand for a third party guarantee as secondary security.
  • Repayment Period: The repayment period of the loan to be sanctioned depends upon the age of the applicants.
  • In case of applicants below the age of 65 years, the repayment period of the loan is set at a maximum of 4 years, i.e. the applicant has to pay off the entire loan within a period of 48 months.
  • In case of applicants between the ages of 65 years to 70 years, the repayment period of the loan is set at a maximum of 3 years, i.e. the applicant has to pay off the entire loan within a period of 36 months.
  • In case of applicants above the age of 70 years, the repayment period of the loan is set at a maximum of 2 years, i.e. the applicant has to pay off the entire loan within a period of 24 months.

Solar Lighting and Photo Voltaic Finance

  • This loan is issued to individuals wishing to purchase and install Off Grid Solar Photo Voltaic Systems (lighting) from legal suppliers.
  • Certain models have been pre-approved by the bank on the basis of technical and financial parameters. Loans can be availed only for the purchase of the pre-approved voltaic systems. Any deviation from the given standard shall not be acceptable to the bank.
  • The applicants can be from rural as well as urban areas.
  • Only systems manufactured by companies and installed by legitimate dealers as approved by MNRE will be considered eligible for loans.
     
  • Amount of loan: The maximum amount of loan to be sanctioned depends upon the nature of the applicant.
  • For individual applicants, the bank issues loans amounting up to 12 times of the net monthly income, subject to the actual maximum cost of the model as laid in the bank’s annexure.
  • For SHG’S, JLG’S, NGO’S, Farmer’s Club: the amount of loan to be disbursed to this category depends upon the maximum amount of loan sanctioned to the group or its individual members as per the normal appraisal applicable to the group. The total amount of the loan along with the proposed loan and already approved loan should not exceed the maximum amount of loan sanctioned to the group or individual members.
  • For applicants from rural areas, the bank issues loans amounting up to two times the net annual income of the applicant as certified by the concerned sarpanch.
  1. Repayment Period:
  • The repayment period of the loan is set at a maximum of 5 years, i.e. the applicant has to pay off the entire loan within a period of 60 months. The bank does not offer any moratorium period.
  • The bank also has a 3 year lock in period. It means that the applicant can opt for prepayment or foreclosure of the loan before completion of 3 years of having availed the loan.
  1. Security: The bank requires collateral against every loan that it issues.
  • The bank requires hypothecation on the article being financed by the bank as primary security.
  • The bank may also demand for a third party guarantee as secondary security.
  • However, in case of individuals drawing regular salary from the bank’s respective branch and individuals having submitted a letter of confirmation from their employers to deduct the J & K Personal loan Emi amount directly from the salary, the bank does not demand for a security.
  1. No letter of confirmation is required for loans amounting up to Rs.15000.
  2. Margin Requirements: The bank requires a minimum margin standing at the rate of 10% of the total cost to be paid up-front.

J&K festival Personal Loan

  • This loan is issued to all individuals who are regular employees of public sector companies including central, state and local bodies, autonomous bodies and drawing regular salary from the bank’s branch.
  • This loan is issued for the purpose of funding festival celebrations.
  • This loan is extended in the form of term loans.
  • Age: The minimum age of applying for this loan is 21 years. However, the maximum age is set at a year less than the retirement age of the applicant. It means that if an applicant is due  to retire at the age of 60 years then his maximum age of applying for a loan is 59 and for those due to retire at 58 years, the maximum age is 57 years.
  • Amount of loan: The minimum amount of loan to be sanctioned is fixed at Rs.5000.
  • The maximum amount of loan is set at the average of three months’ salary of the applicant, subject to a maximum of RS.40000.
  • Margin Requirements: The bank does not have any minimum margin requirements.
  • Security: The bank does not require any security against such loans.
  • Processing Fee: The bank does not levy any kind of processing fee.
  • Prepayment fee: The bank does not levy any kind of prepayment or foreclosure fee.
  • J & K Personal loan interest rate: The bank charges an interest standing at the rate of 13.35% p.a. under fixed rate method to be paid on a monthly basis.
  • Repayment Period: The applicant has to pay off the entire loan with 10 equated Monthly installments.

Laptop/PC Finance

  • These loans are issued for the purpose of purchase of laptops, personal computers, netbooks and tablets.
  • Age of the applicant: The minimum age of applying for a loan is set at 18 years. The maximum age of applying for a loan with the bank for employed individuals is set at 60 years or their retirement age, whichever is earlier and for others the maximum age is set at 65 years.
  • Income criteria: The borrowers or the Co-borrowers of the loan should have a steady source of income in order to avail a loan with the bank.  Business units should ensure that the net home-take pay or the residual income of the applicant post liable deductions including installments of the proposed J & K Personal loan should not be less than 40% of the Gross monthly income.
    Loans under this category shall not be available to those students who have already availed educational loan from the bank, based on the assumption that purchase of computer was a part of the education loan, already sanctioned.
  • Amount of J & K Personal Loan: The maximum amount of loan ranges from Rs.50000 to Rs.1 lakh, depending upon the brand of the laptop or the notebook being purchased.
  • Margin Requirements: The bank does not have any minimum margin requirements.
  • Processing Fee: The bank does not levy any kind of processing fee.
  • Prepayment fee: The bank does not levy any kind of prepayment or foreclosure fee.
  • J & K Personal loan interest rates: The bank charges an interest standing at the rate of 11.75% p.a. under fixed rate method to be paid on a monthly basis.
  • Repayment Period: for loans amounting up to Rs.50000, the repayment period is set at 36 months and for loans above Rs.50000, the repayment period is set at 48 months.
  • Security: The bank requires collateral against every J & K Personal loan that it issues.
  • The bank requires hypothecation on the article being financed by the bank as primary security.
  • The bank also demands for a third party guarantee as secondary security.
  • However, in case of individuals drawing regular salary from the bank’s respective branch and individuals having submitted a letter of confirmation from their employers to deduct the Emi amount directly from the salary, and for loans up to Rs.50000, the bank does not demand for a security.

Scooty Finance for Girls/Ladies

  • This J & K Personal loan is extended to all girl students and working ladies wishing to purchase new scooties. This loan is extended as a term loan.
  • Amount of J & K Personal loan: the maximum amount of J & K Personal loan depends upon the cost of the scooty. The bank issues loans amounting up to 85% of the cost of the scooty, or Rs.50000 whichever is lower. However, if the applicant wishes to avail extra funds then she has to provide the amount in the form of additional margin.
  • The applicants, whether self or a co borrower should ensure that their net home-take pay or the residual income post liable deductions including installments of the proposed J & K Personal loan should not be less than 40% of the Gross monthly income.
  • The bank allows a maximum repayment period of 60 months.
  • Security: The bank requires collateral against every J & K Personal loan that it issues.
  • The bank requires hypothecation on the scooty.
  • The bank also demands for a third party guarantee as secondary security in case of business people and self-employed professionals.
  • However, in case of individuals drawing regular salary from the bank’s respective branch and individuals having submitted a letter of confirmation from their employers to deduct the Emi amount directly from the salary, the bank does not demand for a security.

Smartphone Finance

Jammu and Kashmir Bank offers Personal Loans to help individuals buy a Smartphone which can be an iOS, Blackberry, Android or Windows.
 

  • Jammu and Kashmir Bank offers Personal Loans of this variety as a term loan
  • A maximum amount of Rs.60, 000 can be taken as J & K Personal loan
  • The J &K personal loan requirements in terms of J & K Personal loan eligibility state that the J & K Personal loan would be issued to permanent employees or pensioners of State or Central Government employees, semi-government undertakings and autonomous bodies. The salary of the applicant should be credited to the account maintained with the bank. Moreover, borrowers who already have other loans from the bank for more than 2 years and have no outstanding dues can also make these J & K personal loan requests
  • The minimum age criteria is 21 years and the maximum is 60 years or retirement age whichever is earlier in case of salaried employees or 65 years for others
  • The available amount of J & K Personal loan is Rs.10, 000 and the maximum is Rs.60, 000 or 12 months’ income or 90% of the invoice value whichever is lower
  • A margin of 10% would be maintained by banks to offer personal loans
  • Hypothecation of the item purchased if the J & K Personal loan quantum exceeds Rs.40, 000 would be the requirements for personal loans in the form of security
  • 13% fixed interest rate for personal loans is charged every year with rests at every month
  • 30 months are allowed to repay J & K Personal Loan
  • A J & K Personal loan processing charge of Rs.250 is payable or availing the Jammu and Kashmir Bank Personal loans
  • Personal loans from J & K can be prepaid without any prepayment penalty incurred.

Eligibility

There are specific conditions which should be fulfilled by any individual seeking to obtain a loan from the Jammu and Kashmir Bank. Each criterion in the list of criteria should be fulfilled for a successful application. The eligibility criteria would basically depend on the profile of the individual who is applying for the loan. This profile mainly seeks to assess the individual’s occupation and source of income which can guarantee that the individual will be able to pay off the loan which he desires to avail. Self-employed individuals and professionals should also have a sufficient source of income to qualify for the loan.
 

  1. Business Profile: These loans are issued to individuals, group of individuals, SHG’S, JLG’S, NGO’S, Farmer’s Club.
  • Salaried individual can avail of the loan facility from the bank. Such individuals may be private organization’s employees, employees from public sector undertaking which also includes central, state and local bodies and autonomous bodies. Thus, any individual gainfully employed either in a private firm or in a public company is eligible to avail of the bank’s Personal Loan. Government employees imply individuals working in Government undertaking at the local, state or central level and they should earn a salary from their employment.  
  • Even self-employed individuals who are business men and professionals who are engaged in independent services can avail a personal loan from Jammu and Kashmir bank.
  1. Work Experience:
  • The individual if salaried with a private company should have a job experience of at least 2 years in total. The aggregate job experience in all organizations put together should at least be 2 years and not less than 2 years else loan will not be allowed. Similarly, the individual should be working in his or her current organization for a period which is not less than 2 years or 24 months before he is deemed eligible to apply for a J & K Personal loan.
  • The individual if working with a public limited company, govt. undertakings, whether central or state based, semi govt. organizations and autonomous bodies should be a permanent and confirmed employee of the organization. Any temporary employee or interns are not deemed eligible for a loan with the bank.
  • Similarly, if the individual is a non-salaried professional or a businessman, then he should have been in his current business for at least a period of 2 years.
  1. Income required for J & K Personal loan:
  •  This condition is applicable for individuals applying from rural backgrounds and for SHG’S, JLG’S, NGO’S, Farmer’s Club.
  • Applicants from rural houses should have a steady source of income from farm and non-farming activities, whereas, other applicants such as SHG’S, JLG’S, NGO’S, Farmer’s Club, should be having a savings bank account with the bank’s branch he wishes to avail a loan form and also should have a steady source of income.+

Eligibility criteria for Laptops/PC finance
 

  • These loans are extended to all individuals falling under the category of permanent employees of State / Central Government, Government / Semi-Government Undertakings & autonomous Bodies, employees of private limited companies, private organizations and reputed establishments.
  • These loans are also offered to employees on contractual basis with Central/State Government, Government/ Semi-Government Undertakings & Autonomous bodies who have been working in their current organization for a minimum period of 1 year.
  • Loans are also issued to teachers and officials under Rehaber-a-Taleem, J&K Govt. and Rehaber-a Zeerat, J&K Govt, respectively.
  • Loans are also extended to pensioners both State/Central drawing their monthly salaries/pension from the bank’s branches and professionals, self-employed individuals & Proprietorship Concerns
  • These loans are also given to the regular students of recognized schools, colleges & universities and even to regular teachers of recognized private schools. They must be permanent residents of J&K State).
  • Regular students who are below the age of 18 years as on the date of sanction will be granted loans through parents or guardians. Students above 18 years wishing to pursue regular courses in any of the recognized colleges, institutions, universities of India shall be granted loans with Parent or Guardian as a co-borrower.

Eligibility criteria of Scooty Finance for Girls/Ladies
 

  • Women working private limited companies, employees of public sector companies including central, state and local bodies, autonomous bodies. So anyone who is an employee be it a general employee or professional employee can apply for a personal loan.
  • Even self-employed individuals and professionals who are working independently rendering their services themselves are eligible for availing a J & K Personal loan from the bank.
  • Even women below the age of 60 years and above the age of 18 years can avail the loan, others need to have a co-borrower in the said age bracket for availing a loan.
  • For women above the age of 18 years, who are still studying and don’t have any source of income, loans can be availed by introduction of the applicant’s spouse/parent or a guardian as a co borrower.
  • The borrower should be an Indian citizen with a proper driving license.

Applying for the loan

J & K Personal Loan online can be availed through the Paisabazaar.com website wherein the application process, eligibility check and calculating  EMI for a J & K Personal loan can all be done at one place and the applicant can apply for this Personal loan through the same site.