Jammu and Kashmir Bank Loan Against Property

J & K Bank incorporated in the year 1938 is the first state-owned bank in the country with its headquarters in Srinagar. The bank acquired the status of a scheduled bank in the year 1971 and was declared as an 'A' class scheduled bank by the Reserve Bank of India in the year 1976. The bank at present has 1003 branches across 21 States/Union Territories. The bank functions as a specialised bank across the country and as a universal bank in Jammu and Kashmir.

The bank provides various products under personal banking and corporate banking. The products include deposits, loans to corporate and retail and MSME sectors, credit cards, insurance, mutual funds, etc. The bank provides loan against property for individuals and businessmen for personal as well as business requirements in the form of a term loan. A specialised loan against mortgage of property for trader and service to meet the working capital requirements of the business is also provided. The terms and conditions for the loans are very flexible and the rate of interest affordable.

The following are the eligibility criteria for J & K Bank Loan Against Property:

• Salaried individuals, self-employed individuals/professionals, and businessmen are eligible for the loan against property.
• The loan against property for trade and service is provided only persons involved in retail and whole trade and services and other forms of business enterprises.
• The minimum business vintage required in the case of the self-employed is 3 years.
• Salaried individuals should have a permanent job with experience and a regular source of income.
• The minimum annual income required for salaried individuals is 1.44 lakhs and for others it is 1.50 lakhs to be eligible for the loan against property.
• The applicant should be owning a property and it should be self-occupied.
• A loan will not be granted against a third-party property.
• The maximum age at the time of maturity of the loan should not exceed 65 years.

The rate of interest charged for Loan Against Property and Mortgage loan for Trade and Services is MCLR + 3% i.e., 11.55% p.a. for a loan up to 2.00 lakhs and MCLR + 3.50% i.e. 12.05% p.a. for a loan above 2.00 lakhs. The present 1-year MCLR is 8.55%.

Other Charges

Processing charges for both categories of loan against property is 0.50% of the loan amount. For other charges like pre-payment charges, mortgage charges, documentation charges, etc. please contact the nearest branch or call the customer care helpline of the bank.

Processing charges and Security for J & K Loans Against Property:

Processing charges

Processing charges collected at 0.50% of the loan amount.

Security

Equitable mortgage of the property i.e., residential flat/house, commercial/industrial property owned by the applicant with a marketable title. The property can either be in the individual name or in the name of the proprietor/partner/Director/s. It can either be a self-occupied or vacant property with a value of at least 1.50 times the loan amount. The loan will not be granted against properties that are leased-out.

If the loan is availed by business entities and the property is in the individual names of the proprietor/partner/director/s, the personal guarantee of proprietor/partner/director/s should be available along with the mortgage of the property.

In the case of mortgage loan for trade and service sector, primary security will be the hypothecation of stocks and book debts of the firm/Company and mortgage of the property will be the collateral security.

The following are the types of loans under J & K Loan Against Property

• Loans against mortgage of immovable properties
• Mortgage Loan for Trade and Service Sector

The following are the advantages of availed the J & K Bank Loan Against Property:

• Even an amount as low as 50,000/- can be availed against the mortgage of property.
• The loan will be granted both for personal and business requirements. Exclusive facility for the trading and service sector against mortgage of the property to meet working capital requirements by way of Cash Credit or Overdraft facility. Even non-fund- based limits like bank guarantees and LCs will be provided for the trade and service sector.
• Quick approval with simple documentation.
• Competitive rate of interest.
• Hassle-free loan procedure.
• Flexible repayment period till 7 years.
• Nominal processing charges.

The following are the documents required for Loan Against Property.