JAMMU AND KASHMIR BANK HOME LOAN

Established in 1938, the Jammu & Kashmir Bank (J&K Bank) was the first state-owned bank of India. The Reserve Bank of India (RBI) declared the J&K Bank as an A-class bank in 1976. With its headquarters in Srinagar, the bank has over 900 computerised branches all over India with more than 1200 ATMs. It offers an array of retail as well as corporate banking services and the J&K Bank Home Loan scheme is one of them.

Home Loan is the money borrowed by an individual from a bank or another lending body in order to purchase, construct, or renovate a house. In addition to that, it can also be taken to buy a plot of land. Home Loans are given at a certain interest rate, which is paid (principal + interest) to the lender through equated monthly instalments (EMIs). Most banks take the property as a security for the Home Loan. If the borrower is unable to pay back the loan, the lender has the rights of recovering the dues by selling the property.

J&K Bank offers Home Loans to its customers at competitive rates to serve an array of purposes.

Here some benefits of taking a Home Loan from J&K Bank:

• The J&K Bank offers Home Loan at a competitive rate of interest
• Their processing fee is nominal
• The loan amount is higher
• Long repayment tenure
• The loan is available after simple documentation and the bank has a quick processing time for its loan.
• There are no hidden charges, prepayment, or part payment charges involved

Here is an overview of the J&K Bank Home Loan features:

Purpose of loan

• The bank offers Home Loan for the purpose of purchase or construction of a residential property (house or flat) by individuals or by others such as public agencies, housing boards, builders, cooperative societies, or employers for some individuals.

• People who already own a house can intend to make a second property can also apply for J&K Bank Home Loan. People with existing Home Loans or those who are tenants can also apply.

• The bank also offers Home Loan for purchase of plot for construction of a house. However, in this case the individual must declare that they will be constructing the house within two years of taking the loan. Plots that are sold on power of attorney do not get loan advance.

• J&K Bank also offers Home Loans for renovation, reconstruction, repairs, or home improvements of the first and even the second house as well.

Loan Quantum

The quantum of loan for any applicant is determined after considering different factors such as the income of the applicant, age, loan repayment capacity, liabilities, assets, cost of the property applicant wants to buy, and so on. Therefore, the factors that contribute to increase loan quantum include:

• The possibility of the property being rented out
• Other sources of income of the applicant in addition to the regular income
• Depreciation in the property's cost due to some factors
• The income of spouse or children: There must be a steady flow of income in the form of salary or earnings from a business on a constant basis. The child or the spouse must be a co-borrower and the loan is a joint loan, thus making them the joint owners of the flat/house/plot. In this case, the co-applicant's residual income only is considered. In addition, the spouse or the child/children's income documents are to be submitted for verification.

Based on different factors the loan amount is assessed as under:

 Terms to decide gross deductions

The J&K Bank ensures that the gross deductions on the Home Loan amount that are inclusive of the EMI for the loan must follow the following guidelines:

 Loan Margin

In case if you need the loan for the purchase of plot, then your contribution cannot be less than 40% of the plot/land cost. For other conditions loan margin is as follows:

Loan Repayment Terms

The J&K Bank offers Home Loans at the following repayment terms:

 Moratorium Period

Security

• Registered or equitable mortgage of the flat or plot to be purchased or constructed must be deposited as security against the loan. The borrower must ensure that the property is free from any kind of encumbrance and is marketable.

• In the case where the property is under construction and the immediate mortgage is not possible, the title deed is made in favour of the borrower only when the construction is partially or fully done. Alternatively, it is done after the person purchasing the property pays the cost of the property in full. Before that the bank undergoes a tripartite agreement with the builder and the buyer stating the same. The builder also signs an affidavit stating that the construction will go as planned and as stated by the law.

• In the case of loan for repair, extension or alteration of existing residential property registered or equitable mortgage of the house/flat must be submitted.

Collateral

The J&K Bank does not require any third-party guarantee or collateral in most of the cases except:

• In case of pensioners where the spouse or the legal heirs of the applicant who will receive the family pension must take guarantee of the loan repayment.

• In case of NRIs two resident Indians who have sufficient means must take guarantee to cover the NRI applicant's liability besides other securities.

• In cases where house mortgage is not taken as security and yet a loan of up to 10 Lakhs has been granted to employees of J&K state government or up to 5 Lakhs to others for the purpose of repairs, extension, alteration etc. of existing property has been given.

J&K Bank Home Loan interest rates are linked to 1-year Marginal Cost of Funds based Lending Rate (MCLR) of the bank.

Here are the MCLfor different tenures:

Here are the current interest rates applicable on J&K Bank Home Loan:

J&K Bank offers the following types of Home Loans based on the purpose for which the loan is availed:

• Loan for the purchase/construction of residential house/flat by the individuals

• Loan for the construction of residential house/flat by public agencies like Housing Boards, Local Bodies, HUDCO, Builders/Employers, Co-operative Societies, etc. for individuals. In the case of unfinished flats/houses, cost of completing/finishing the house/flat is considered as part of the total cost of the project.

• Loan for the purchase/construction of residential house/flat by a person who already owns a house in the town/village where they reside. The house/flat should be acquired by availing Home Loan from any bank/financial institution or otherwise and the borrower intends to buy or construct a second house in the same/other town or village for self- occupation purpose.

• Loan for the purchase/construction of residential house/flat by a person who wants to purchase or construct a house  and also proposes to let it out on rent on account of their posting outside the headquarter or because they have been given accommodation by their employer.

• Loan for the purchase of a residential house/flat by a person who is currently residing as a tenant in the concerned house/flat.

• Loan for purchasing a plot only, provided the borrower gives a declaration that he/she will construct a house on the concerned plot with the loan or otherwise within 2 years. Advance is not allowed against plot purchased on the basis of power of attorney.

• Supplementary finance as the additional loan is offered within the overall limit for carrying out additions/alterations/repairs to the house/flat already financed.

• Loan for repairs and renovation of house/flat that is already constructed with borrower's own resources or Home Loan whether liquidated or outstanding.

• Loan for purchase/construction of the second house.

• The loan can also be offered for purchasing a third and subsequent house, but such loan will not be sanctioned under Commercial Real Estate (CRE).

The J&K Bank Home Loans are available to individuals as per the following eligibility criteria:

• Applicant should be Indians and 18 years of age or above at the time of sanctioning of the loan.
• Individuals should be permanent employees of the central or state government organisations, semi-government organisations, or autonomous organisations.
• Employees working with reputed companies and having over 3 years of work experience
• Individuals who are self employed, professionals, or businesspersons with at least 3 years of working in their current occupation.
• Individuals engaged in agriculture as a profession or any of the allied activities of agriculture.
• Individuals who have retired from central or state government organisations
• Individuals who have retired from public sector undertakings and will be 70 years old or less at the time of loan maturity.
• Non-resident Indians (NRIs) can also apply
• Those seeking a loan for repair or renovation of ancestral property either in their name or still in the name of the parent dependent on the loan seeker. In such a situation loan is granted to the parents with the loan-seeking individual as a co-borrower. The loan is however, granted keeping the loan seeker's income in mind and not the parent's. Also, the age of the youngest borrower will be considered here to decide upon the loan tenure, provided the person is contributing to more than 50% of the EMI. In this case or otherwise, the property is held mortgaged.

For Salaried employees

• Duly filled application form by the applicant for the Home Loan
• 2 photographs of the applicant to be submitted in passport size
• ITR records of the applicant from over the last 2 years
• Identity Proof: Passport/ Voter ID/ PAN Card/ Driving License
• Residential Address Proof: Passport/Registered Rent Agreement/Leave and License/Utility Bill of last three months.
• Proof of Income: Last 6 months' salary slip, bank statement of at least last 6 months reflecting salary credited or EMI being debited, and Form 16 of 2years.
• All property-related legal documents such as the past title chain, conveyance deed, sales deed, allotment letter, possession letter, latest property tax receipt, copy of the approved plan for construction or extension.

For Self-Employed

• Duly filled application form by the applicant for the Home Loan
• 2 photographs of the applicant to be submitted in passport size
• Identity Proof: Passport/ Voter ID/ PAN Card/ Driving License
• Residential Address Proof: Passport/Registered Rent Agreement/Leave and License/Utility Bill of last three months.
• Proof of Business: VAT/ service tax registration/ incorporation details of the company business address proof, accounts & balance sheets showing profit & loss statements certified by a CA.
• Copy of business existence, partnership deed, and business profile
• All property-related legal documents such as the past title chain, conveyance deed, sales deed, allotment letter, possession letter, latest property tax receipt, copy of the approved plan for construction or extension. 

When you decide to take a Home Loan from the J&K Bank, it is important to realise that this is a time-consuming process that involves paperwork and several visits to the bank. It also involves formalities of verification, eligibility, and so on. If you are short on time and are unable to pull out that much time, it is best to hand over the job to the experts.

MyMoneyMantra has years of experience and expertise in the arena and has executives who are especially trained to help you through the whole process of Home Loan application, right through to the final stage of loan disbursal. Get expert advice and assistance through the whole process with MyMoneyMantra, making it a hassle-free experience for you.

Applying for a Home Loan through MyMoneyMantra is a simple process.

Simply visit the website and follow the steps given below:

• Once you are logged onto mymoneymantra.com click on the Home Loan tab
• Fill in all the required details
• Once done, submit your details so that your eligibility for the loan can be calculated
• You can also try different combinations of loan amount and loan tenure using an EMI Calculator before filling the details to come to the right equated monthly instalment (EMI), which you feel you, can pay.
• Once the MyMoneyMantra team receives your details, they will get in touch with you personally to understand what your specific needs from the loan are and will guide you accordingly. You will also get help to provide the correct documentation as well as the application process so that you have a seamless experience right until the loan is disbursed.

You can use the following formula to calculate the J&K Bank Home Loan EMI:

P*r* (1+r)^n/([(1+r)^n]-1)

Here, P is the loan amount to be borrowed, r is the rate of interest on the Home Loan, and n is the loan term for repayment, it is mentioned in months and not years.

There is a faster way of calculating your loan EMI by using a Home Loan EMI Calculator available for free on MyMoneyMantra. With the calculator you can also fill in different loan amounts or change the loan tenures to arrive at the right combination that will let you work around an EMI amount which you find easy to pay after your monthly expenses.

Therefore, when you are trying to calculate the right EMI for yourself, make sure you consider all your current responsibilities and liabilities beforehand. This will help you plan well and pay your EMIs comfortably without defaulting. 

Here are the processing fee and charges associated with the J&K Bank Home Loan:

Apart from housing loans, the bank also offers the following products and services:

For any information regarding Home Loans or any other products you can contact the bank at the following numbers:

Call

• Customer service number - 1800 1800 234
• Customer Care number - 0194-2481999
• For inbound international calls - +91 194 2713434, +91 194 2713435 & +91 194 2481936

Address

• Registered Office: M A Road, Srinagar 190 001, Jammu & Kashmir
• Corporate Headquarters: M A Road, Srinagar 190 001, Jammu & Kashmir

Why should I apply for a Home Loan from J&K Bank?

The J&K Bank is processed at a fast pace and has minimal documentation involved. It is available at competitive rates and there are special offers for women, NRIs and pensioners.

How can I apply for the J&K Bank Home Loan?

You can apply for J&K Bank Home Loan by either visiting their website, by contacting the nearest bank branch, by calling customer care for assistance, or through an online marketplace such as MyMoneyMantra.

Why should I apply for the J&K Bank Home Loan through MyMoneyMantra?

Opting for a J&K Bank Home Loan through MyMoneyMantra ensures you get the loan at the best rates and the whole process becomes, faster, seamless, and hassle-free. The team at MyMoneyMantra has experts with years of experience in this arena and you might also get some great offers and deals fro the bank through them.

Why opt for balance transfer of loan to J&K Bank?

J&K Bank offers Home Loan at competitive rates and the best EMI. Therefore, if your existing EMI is more than this, the balance transfer will be a great option for you.

Is it possible to foreclose my J&K Bank Home Loan account?

Yes, the J&K Bank does not levy any pre-closure charges and you can easily foreclose your Home Loan account.

What is the maximum duration of loan tenure that I can get with J&K Bank Home Loan?

The maximum duration of loan tenure offered by the J&K bank is 30 years for salaried/professional applicants and 20 years for others.

Is there any tax benefit available on Home Loan from J&K Bank?

According to the Indian Income Tax Act 1961, all resident Indians will get tax benefit on Home Loans (principal as well as interest components) as under Section 24 and 80C of the Act.

What benchmark is applicable on J&K bank Home Loans?

J&K bank Home Loans come with 6-months MCLR.

Is it possible to club my spouse's income with mine to apply for the J&K Bank Home Loan?

Yes by clubbing your spouse's income with yours, you can increase your loan eligibility as your loan payback capacity increases. This is possible however, if your partner is either the property's co-owner or a guarantor. 

Does J&K Bank allow part prepayments? How does it affect my loan?

Yes, part prepayments are allowed by the J&K bank as it helps reduce the outstanding loan and thereby the overall interest component comes down. So, every time you make part-payment the EMI slowly starts contributing more towards your principal amount and less towards the interest, which decreases with part repayment. There is no penalty/charge on part prepayment.

What factors help increase your J&K Bank Home Loan eligibility?

Co-applicants to the loan, guarantors, a good credit score, no past records of defaulting etc. are some factors that increase your eligibility in addition to your monthly income which helps the bank assess your repayment ability.

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