J&K Bank Car Loan Scheme - Know Details - Job Careers
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J&K Bank Car Loan Scheme – Know Details

Ensure your family enjoys the happy moments of life in your own car. Get interest rate concession up to 75bps for better CIBIL score. Avail J&K Bank Car Loan now!


To provide finance for purchase of new cars/vans/jeep/SUV/MUV, fuel operated as well as electric cars, for Private Use only at:

“Ex-Showroom” Prices OR “On Road Prices” wherever opted by Borrower(s) shall mean Ex-Showroom Prices plus:

    • One Time Registration Charges
    • First Insurance Premium
    • Cost of Accessories (should be limited to 10% of Ex-Showroom Price).


  1. Permanent Employees of State / Central Government, Semi-Government Undertakings, Institutions and Autonomous Bodies.
  2. Regular Employees of Private Limited Companies / Private Organizations and other Reputed Private Institutions/ Establishments who have a service of at least 2 years with the current employer.
  3. Contractual Employees of Central/State Government, Semi-Government Undertakings and Autonomous Bodies (provided there are no instances of termination of employment of such employees previously).
  4. Professionals or self-employed individuals with at least 2 years’ experience in business/profession/activity. (This category shall include proprietors, partners and promoters of companies where the loan is sanctioned in their personal capacity. Gross Income in this case shall mean income as shown in proof of income obtained).
  5. Persons engaged in agricultural and allied activities.
  6. Pensioners of State/Central/UT Gov’t, PSU’s (Public Sector Undertakings), autonomous bodies and Institutions. (Family pensioners shall not be eligible).
  7. Employees appointed under SRO 202 (to be treated at par with Permanent Employees of State/Central Government) subject to
    Page 2 of 10 Annexure to Circular No 87-705 dated 05/03/2022 the condition salary for at least 6 months has been credited in the savings account of the applicant.
  8. Partnership firms and companies which have been in existence for a minimum of 02 years.
  9. HUF can also avail car loan facility. HUF can apply for the loan through Karta and the documents, as prescribed, shall also be executed by the Karta on behalf of the HUF. However, it shall be ensured that a joint application is obtained from all the coparceners for the loan whereby they will also confirm that the loan facility is used for the benefit of the HUF.
  10. Applicants who do not fall in any of the above categories may be also be financed subject to the condition that the applicant has a stable/perpetual source of income and provides proof to the satisfaction of the sanctioning authority.


  • For permanent employees of State and Central Government, Government Undertakings & Autonomous bodies Drawing salary through our Bank :
    • 10% of invoice value
  • For Platinum/Gold Current Account Holders & Customers having aggregate limits (Working Capital and/or Term Loan) above 25 Lakh having satisfactory dealings.:
    • 10% of invoice value
  • For All Others :
    • 15% of invoice value

      NOTE: The borrower shall be free to deposit booking amount/margin through any of the existing modes of payment. The dealer should provide a valid receipt for margin / advance / booking amount received.


  • Minimum age at the time of loan application: 18 years
  • Maximum age at the time of loan maturity: 70 years


  • In case of in service Govt employees under old pension scheme, car loans with tenor exceeding residual services period can also be considered. However, the sanctioning authority may make a tentative assessment of his/her likely pension income, based on his her existing salary structure, residual service, pension rules etc. and ensure that the instalment of the proposed loan shall not be more than 50% of his/her likely monthly pension.
  • In case of joint borrowers/ Co-borrowers, the age of that borrower can be considered for fixing tenor of the loan whose contribution towards the repayment of proposed loan is at least equal to 50% of EMI.
  • The upper age limit may be relaxed upto 75 years in deserving cases, powers for which may be vested with the Zonal Credit Committee.


  • 0.50% of Loan amount plus applicable GST
    • Minimum: Rs.1500/- + GST
    • Maximum Rs.15,000/- + GST

(Nil for employees mentioned at para rate of interest)


  • Cost of vehicle less by stipulated margin subject to repayment capacity.


  • For all types of individual borrowers: Gross Annual Income of Rs 2.00 lacs
  • For proprietorship/partnership firms and companies: Cash Profit (PAT+ Average Depreciation) of Rs 2.00 lacs for the previous financial year.


The loan shall be a repayable in a maximum of 84 equated monthly installments with 1st installment falling due w.e.f last day of next month of disbursement.


  • 4% on the outstanding in respect of Fixed interest rate loan shifted to other banks + Applicable GST.
  • Nil for all other loans prepaid.


Borrower type Fixed rate of interest Floating rate of interest
Individual(s)/ Firms/ Companies/ other Non-Individual Entities RLLR+0.25% RLLR+0.75%



  • All the employees falling within ambit of any MoU between J&K Bank and their employer (Government of J&K/ Ladakh/ JKP/ Institutions etc) shall be granted uniform interest rate concession of 25 bps.
  • Interest rate concession of 50 bps may be extended to borrowers with CIBIL score of above 725. Similar concession shall be extended to non-individual borrowers with internal rating grade of 1 or 2.
  • Interest rate concession of 25 bps may be extended to borrowers with credit score of 685-725. Similar concession shall be extended to non-individual borrowers with internal rating grade of 3 or 4.
  • In case of borrowers eligible for multiple concessions, only a single concession (highest permissible) shall be extended.
  • The above mentioned interest rate concession shall be available under fixed as well as floating rate option.
  • For the sake of uniformity, Credit reports from CIBIL only shall be extracted / considered under car loan scheme.
  • In case of joint borrowers, credit report of borrower with lowest CIBIL score shall be considered for deriving applicable interest rate.
  • Additional discount of 25 bps shall be extendable in loan cases with quantum of Rs 20.00 lacs and above provided the CIBIL score of the borrower (s) is above 685 (for individuals) or internal rating grade of borrower is 1/2/3 or 4 (Non-individual entities)

After factoring in the above mentioned concessions, the applicable interest rate in case of borrowers eligible for such concessions shall be as under:

  • For Individuals with quantum of loan upto 20.00 lacs

Borrower profile Applicable Concession Effective Rate
Fixed Floating
All borrowers with CIBIL score above 725 0.50% RLLR-0.25% RLLR+0.25%
All MoU employees as other borrowers with CIBIL Score of 685-725 0.25% RLLR RLLR+0.50%


  • For Individuals with loan quantum of 20 lacs and above
Borrower profile Applicable Concession Effective Rate
Fixed Floating
All borrowers with CIBIL score above 725 0.75% RLLR-0.50% RLLR
All MoU employees as well as other borrowers with CIBIL Score of 685-725 0.50% RLLR-0.25% RLLR+0.25%


  • For Non-Individual Entities with quantum of loan upto 20.00 lacs:
Internal rating grade Applicable Concession Effective Rate
Fixed Floating
1 & 2 0.50% RLLR-0.25% RLLR+0.25%
3 & 4 0.25% RLLR RLLR+0.50%


  • For Non-Individuals Entities with loan quantum of 20 lacs and above
Internal rating grade Applicable Concession Effective Rate
Fixed Floating
1 & 2 0.75% RLLR-0.50% RLLR
3 & 4 0.50% RLLR-0.25% RLLR+0.25%



  • Primary
    • Hypothecation of vehicle to be purchased (Bank’s charge to be registered with concerned Transport Authority/VAHAN Central Registry)
  • Collateral:
    • For permanent employees of J&K/Ladakh Gov’t and Central Government, Government Undertakings & Autonomous bodies maintaining salary accounts with our bank: NIL
      (However, in cases where the loan tenor is in excess to residual service period, TPG of one person shall be obtained).
    • For pensioners:
      • Guarantee of 02 persons including spouse eligible for family pension.
      • Guarantee of spouse only if he/she is a Govt employee or pensioner
    • Private /Public Limited Company/ partnership firms:
      • Personal guarantee of promoters/directors/partners
    • For all others:
      • Guarantee of one person having sufficient net worth to withstand the liability and acceptable to Bank.
      • ECS/RECS/NACH debit mandate (in case of non-customers)

    Sanctioning Authority may waive off third party guarantee in favour of certain categories of applicant borrowers, as noted below:

      1. Platinum/Gold Current Account Holders having average balance of Rs 5.00 lacs or above
      2. Customers availing aggregate limits (Working Capital and/or Term Loan) above 50 Lakh with satisfactory track record.
      3. Borrowers with credit score of 750 in case of CIBIL or 650 in case of CRIF.
      4. High net worth individuals maintaining term deposits in excess to Rs 50.00 lacs with the bank in their own name.

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