Jammu and Kashmir Bank Car Loan

J&K Bank provides attractive car loans for both new and used cars to its customers. The bank provides good rates of interest and high amount of car loans to its customers, helping them in buying their dream car. Its car loan is available for all groups of people. Be it the people working in the public sector or private sector, people who are self employed, professionals, agriculturalists, etc., the loan is available for all if they match the bank’s eligibility criteria.

Features of Car Loans from Jammu and Kashmir Bank

Maximum Amount of Loan

J&K Bank provides up to Rs.50 Lakhs to its customers under its car loan scheme for new cars and for used cars, the bank provides loan up to Rs.15 lakh. This feature of the bank helps people buy the best car for themselves.

Flexible Repayment Period

J&K Bank provides its customers with flexible options for repaying their car loans. A person can repay his J&K Bank car loan, taken for a new car, in equated monthly installments (EMI) ranging from 12 to 84 months. In case of used cars, the repayment period is maximum 72 months if the car is less than 3 years old. If the car is 3 years old or above (up to 5 years old), then the maximum repayment period is 48 months.

Competitive Interest Rates

The bank provides attractive rates of interest on car loans to its customers. It provides both floating and fixed rates of interest options. In case of new cars, the fixed rate of interest is 11.25% p.a. with monthly rests and the floating is base rate plus 1% p.a. with monthly rests. The bank also provides the benefit of a rebate of 0.25% in the interest rate to its women customers.

Quantum of Loan

Jammu and Kashmir Bank offers car loans to its customers with less loan margin in order to help them purchase the car of their dreams. In case of new cars, the maximum corpus offered to customers is as follows-

• Employees of the State/Central Government, government undertakings, and autonomous bodies who withdraw salary through Jammu and Kashmir Bank accounts are offered car loans subject to a maximum of 90% of the ex-showroom or on-road price of the car.
• Jammu and Kashmir Bank customers who hold Platinum or Gold current bank accounts are eligible for car loans up to 90% of the ex-showroom or on-road price of the selected car.
• Other borrowers can get car loan financing up to 85% of the on-road or ex-showroom price of the car.

If a person is planning to purchase a  used/pre-owned car, below mentioned is the maximum quantum of loan that he or she can withdraw using Jammu and Kashmir Bank Car Loan –

• If the old/used car is less than 3 years old, the customer can get a car loan of up to 75% of the valuation amount of the vehicle.
• In case the customer is planning to purchase a pre-owned/old car that is more than 3 years old, the maximum amount of loan that he or she can withdraw is 70% of the valuation amount of the vehicle.

Minimal Processing and Prepayment Charges

Jammu and Kashmir Bank Car Loan carries zero prepayment charges if the customer uses the funds to purchase a new car. However, if the customer wishes to prepay a car loan amount borrowed to buy a used car then the bank levies a penalty of 2% of the amount that is prepaid.

When a borrower applies for a car loan through J&K Bank to purchase a new car, he or she has to pay a processing fee of 0.50% of the loan amount with a minimum of Rs.500. On the other hand, there are no upfront charges if the car loan is used to buy a pre-owned vehicle.

Why apply for a Jammu and Kashmir Bank Car Loan through BankBazaar.com ?

BankBazaar.com is the best place for a person who wishes to buy a car loan. It provides people with a platform where they can compare quotes provided by different banks and understand the features and rates of the different loan schemes. The website guides people in choosing the best car loan which suits their requirement. BankBazaar helps a person through the entire process of getting a car loan, from application to finally achieving it.

Jammu and Kashmir Bank Car Loan Interest Rate

J&K Bank car loans have different rates of interest for new and used cars. It provides the option of both fixed and floating rates of interest on car loans for new cars to its customers while for used cars, there is a fixed rate of interest.As per the guidelines of Reserve Bank of India, the rate of interest on Jammu and Kashmir Bank Car Loan are based on the Marginal Cost of Funds-Based Lending Rate (MCLR) system.

For new cars –

• The fixed rate of interest on car loan for general public is 11.25% p.a. with monthly rests and the floating rate of interest is base rate(BR) + 1% p.a. with monthly rests.
• The fixed rate of interest on car loan for companies and firms is 11.75% p.a. and the floating rate of interest is base rate(BR)+1.50% p.a.
• A rebate of 0.25% in interest rate is awarded to the women customers applying for the car loan.

Check out the interest rates offered by Jammu and Kashmir Bank on new cars based on the applicable ongoing MCLR –

For used cars –

• If the period of car loan is up to 4 years, the fixed rate of interest is 15.25%up to 12.45% – depending on the loan tenure
• If the period of the car loan is more than 4 years, the fixed rate of interest is 13.45%

Learn about the fixed rates of interest offered by Jammu and Kashmir Bank on old/pre-owned cars based on the applicable ongoing MCLR –

Loan Tenure	Rate of Interest
For up to 4 years	MCLR + 3.25%
More than 4 years	MCLR + 4.25%

To check the latest rate of interest, one should visit the bank’s website.

Jammu and Kashmir Bank MCLR Based on the Period of Loan Maturity Effective from 10 March 2018 –

Loan Maturity Period	Applicable MCLR
Overnight	7.80
1 month	8.05
3 months	8.20
6 months	8.55
1 year	8.95
2 years	9.15
3 years	9.20

Applicable MCLR for Floating Rate of Interest –

Overall or Remaining Loan Tenure	Applicable MCLR
Upto and including 1 month	1-month MCLR
1 month to 3 months (including)	3-month MCLR
3 months to 6 months (including)	6-month MCLR
More than 6 months	1-year MCLR

Applicable MCLR for Fixed Rate of Interest –

Overall or Remaining Loan Tenure	Applicable MCLR
Upto and including 1 month	1-month MCLR
1 month to 3 months (including)	3-month MCLR
3 months to 6 months (including)	6-month MCLR
6 months to 1 year (including)	1-year MCLR
1 year to 2 years (including)	2-year MCLR
More than 2 years	3-year MCLR

Eligibility Criteria for a car loan from Jammu and Kashmir Bank

Car Loan for new cars –

1. The people who can apply for car loan should be –
   • A permanent government employee or an employee of government or semi-government undertaking or an autonomous body
   • An employee working on contract with the government or with a government or semi-government undertaking or an autonomous body, provided he is working on the contract for the past 1 year and will be part of it during the entire tenure of the car loan
   • An employee of private organization, private limited companies or a reputed organization
   • Professional, self employed or a proprietor
   • A person involved in agriculture and related activities
   • Retired government or public sector undertaking employee
2. Joint borrowers are eligible to apply for this car loan
3. 21 years is the minimum age for applying for this loan
4. In case of a government employee, an employee hired on contract basis by the government or a private organization employee –
   • The maximum age during maturation should be either 60 years or the age of retirement (if retired before reaching 60 years)
   • The minimum gross annual income has to be Rs. 3 lakhs p.a.
   • The minimum employment period of the applicant should be 1 year at least
5. In case of professionals, self employed, proprietors, agriculturalists, etc. –
   • The age of the borrower during loan maturity should be maximum 70 years
   • The applicant should have at least 3 years of experience in business
   • The minimum gross annual income of the applicant has to be Rs. 4 lakhs p.a.
6. In case of retired government employees or retired employees of a public sector undertaking –
   • The age of the borrower should be maximum 70 years at the time of maturity
   • The minimum gross annual income should be Rs. 2 lakhs

Car Loan for used cars

1. Permanent employees of government or semi-government undertakings, public sector undertakings, autonomous body, private, or reputed companies are eligible for this car loan. Professionals, self employed individuals, proprietors, partnership firms, private limited company or public limited companies also qualify for the loan.
2. For salaried individual –
3. The applicant should be 21 years old at least
   • He should be below 58 years of age during the loan maturity period
   • The institutions where the age of retirement is 60 years, the maximum age required during loan maturity will be 60 years maximum
   • The minimum employment period is 3 years. In case an applicant, who draws his salary from a J&K Bank account, provides a letter of undertaking from the employer, then the minimum employment period required will be 2 years for him.
4. For self employed individual-
   • The applicant should be above 21 years of age
   • He should be below 65 years of age during the time of loan maturation
   • He should be in business for at least 3 years
5. A partnership firm or private limited or public limited company which applies for a car loan should have an existence of at least 3 years

How to calculate EMI on Jammu and Kashmir Bank car loans?

Calculating the equated monthly installment (EMI) in advance helps a person decide important things about the car loan he plans to buy. To calculate the EMI, one can use the EMI calculator found in the ‘finance tools’ section on BankBazaar’s website. A person should have information such as the amount of loan, the rate of interest and processing fee with him as it is required for calculating the EMI.