Jammu and Kashmir Bank

Apply Jammu and Kashmir Bank Loan Against Property

About J & K 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.

Eligibility for J & K Bank Loan Against Property

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.

Rate of Interest and other Charges for J & K Loan Against Property

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.

Types of J & K Bank Loan Against Property

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

Features of J & K Bank Loan Against Property

Name of the product Purpose Quantum Interest Security Repayment Charges

Loan against mortgage of property

To meet business as well as personal requirements like medical expenses, debt consolidation, wedding expenses, family vacation, higher education etc.

30 times the net monthly income with a minimum of 50000/- and a maximum of 100.00 lakhs.

The income of the spouse will be considered to arrive at the quantum of the loan. The loan will be sanctioned in joint names in such cases.

The loan will be provided only as a term loan

The rate of interest will be MCLR + 3.00% i.e., 11.55% p.a. for a loan up to 2.00 lakhs and MCLR + 3.50% 1.e., 12.05% p.a. for a loan above 2.00 lakhs.

.

Equitable mortgage of the residential flat/house, commercial/

Industrial property against which the loan is granted.

The personal guarantee of the proprietor/

Partners/

Directors as the case may be if the loan is availed by business entities.

The loan has to be repaid with a maximum of 7 years.

Processing charges at 0.50% of the loan amount will be collected.

For other charges like the documentation charges, mortgage charges, pre-payment charges etc., you can contact the nearest branch of the bank or call the customer care helpline of the bank.

Mortgage loan for Trade and Service Sector

To meet the working capital requirements of the business.

The loan will be granted in the form of either a cash credit or an overdraft facility.

Even non-fund-based limits like Bank Guarantees and LCs will be provided. The quantum will be need-based and as per the sales turnover of the business

 

Primary security by way of hypothecation of stocks and book debts.

Collateral security by way of equitable mortgage of the property against which the facility is granted.

Running account to be repaid on demand. The period allowed will be 12 months and there will be a review every 12 months after which the facility will be renewed for a further 12 months

 

Advantage of taking the J & K Bank Loan Against Property

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

  • Even an amount as low as 50000/- 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.

Documents required for the J & K Bank Loan Against Property

The following are the documents required for the J & K Bank Loan Against Property.

Type of document Salaried Self-employed

Residence Proof

Aadhar Card, Voter's ID Card, Passport, DL, Utility bills

Photo ID Proof

Pan Card, Driving Licence, Aadhar Card, Voter's ID Card, Passport

Income Proof

3 months' salary slips

Form 16 and ITR for the last 2 years.

Bank statement of salary account for the last 6 months

Audited financial statements like the balance sheet and P & L account for the last three years.

ITwith income computation for the last 3 years.

Bank statement of the main operative account for the last 12 months.

Bank statements of loan accounts for the last 12 months.

Business Proof

Not applicable

GST Registration certificate

Partnership Deed

MOA and AOA

Certificate of Incorporation

Property Documents

Copies of property documents required to prove a marketable title.

Application

Prescribed application for the loan against property

Photograph

Two passport size photographs of the applicant and the co-applicant.

Why apply for J & K Bank Loan Against Property through MyMoneyMantra?

Before reasoning the facts about applying for a loan through MyMoneyMantra, we need to understand the procedures involved in applying for a loan. Similar to the purchase of a high value consumer product wherein you will compare the cost of several brands and explore the deals with various dealers for the brands available in the market, you will have to compare the rates and fees that are offered by different players in the market for the big-ticket loan that you are about to apply. You can do the comparison online, but you will have to browse through various websites to get the details of different players. This process is time-consuming and also confusing. If all the details were to be available on a single screen it would be convenient to do the comparison. After this, you will have to arrive at the disposable amount available from the monthly income after providing for your existing commitments to pay towards the proposed loan. With the EMI decided, you will have to check your eligibility using the formula applied for calculating the EMI for the desired amount. You will have to do the calculation multiple times till you decide on the combination that will give the EMI almost equal to the disposable amount available.

The manual calculation is time-consuming and if the same is done using an EMI calculator the time consumed will be reduced almost by 90%. The procedure for applying for a loan is indeed an elaborate one and with assistance from a team who is well-versed in the procedure, it can be seamless and hassle-free. MyMoneyMantra is one such organisation which has a team of loan specialists who can guide you at every step. All you have to do is to apply for the loan through MyMoneyMantra. Access the website of MyMoneyMantra and provide all the basic details that are listed on the website. The team will help you to compare the different quotes that are available on the home page of the website and will also help you in choosing the best deal as per the information provided by you regarding the repayment, income and the loan amount required. You can also have a conversation with them and get all your doubts regarding the loan cleared.

There is an EMI calculator also available on the website with which you can not only calculate the EMI multiple times as per the different quotes available and decide on the one that suits you the best, but also can understand the variation in EMI or loan tenure on making periodical pre-payments and the saving on the interest cost on making the full pre-payment. You can proceed to fill the loan application once you have decided on the loan provider. The documents will be collected from the team from your residence or workplace as the case may be and will deliver the same to the loan-provider. They will also co-ordinate with the loan provider to enable you to get quick approval and will be in contact will the disbursement of the loan.

With a team like this loan application process seems so simple with your involvement limited only to providing the required details and the essential documents. There is no hassle of multiple visits to the financial institution to follow up on the loan status. There is no ambiguity about any of the procedures and costs since the team will clarify the same to you. They will make the whole process of availing a loan a pleasurable one for you.

How to use the MyMoneyMantra EMI Calculator?

Calculating the EMI is one of the essential steps involved before applying for a loan. If you commit to an obligation that you may not be able to sustain subsequently, you will land up in a financial mess. Instead, arrive at the amount you will be able to contribute towards the additional obligation by keeping a cushion out of the monthly income for any expense that may crop up in the future.

You can very well calculate the EMI manually by applying the formula meant for the calculation. If it is a calculation that has to be done once, then maybe you can. But in this case, you will have to do the calculation multiple times different combinations until you arrive at the value that is approximately close to the disposal amount that you have arrived at to service the future EMI. Repeated manual calculations may even give rise to errors.  You can avoid all these complexities by using the online EMI calculator available on the website of MyMoneyMantra. You will also have the advantage of viewing the quotes from various financial organisations to choose from.

To use the MyMoneyMantra calculator, you will have to first access the website. Thereafter chose the EMI calculator from the various EMI calculators like the EMI Calculator, Balance Transfer EMI calculator, Part pre-payment EMI Calculator, and Full Pre-payment EMI calculator. You should then provide the details like the loan amount, loan tenure and the rate of interest. The EMI will be calculated immediately. You can do the calculation several times using different combinations until you arrive at an EMI that suits your monthly budget. After this you can apply for the loan through MyMoneyMantra and get their valuable assistance.

You will be surprised at the amount of time you will save using this online calculator. If you have chosen a loan provider who offers the option of step-up and step-down EMI, you can even check the variation in the interest cost when the EMI is increased gradually or decreased gradually. The amortization schedule will also give you an idea of the interest you will be paying at the end of the loan tenure which may prompt you to plan for periodical pre-payments to reduce the interest cost.

If you are opting for a balance transfer, the balance transfer calculator will enable you to understand the actual advantage cost-wise on such a balance transfer.

Why use Loan Against Property EMI Calculator?

EMI is the amount that has to be paid to the loan provider by the borrower every month on a specific date until the amount borrowed is cleared. You should be able to sustain the burden for the long term if you are going in for a Loan Against Property with a repayment period between 10 years to 15 years. During this period there may be emergency expenses that might crop and if you have not planned your monthly budget, you may end up in financial stress. There are chances that you might miss out on EMIs which will lead to grave consequences. To avoid all this, it is better to calculate the EMI for the desired amount before applying for the loan as per your affordability.

It is better to use an online EMI calculator instead of manual calculation for various reasons as mentioned below.

  • For a loan where the interest is on the basis of reducing balance, the calculation involves exponents which are complicated. It is therefore advisable to use an EMI calculator for such complicated calculations.
  • By calculating the EMI using the EMI calculator you will able to plan your monthly budget meticulously.
  • You will be assured of 100% accuracy when EMI is calculated using the EMI calculator, unlike manual calculation where you can expect errors.
  • You can change the loan tenure and rate of interest several times till you arrive at an EMI that is affordable.
  • The EMI calculator will give you the amortization schedule which gives a break-up of the principal and interest component of every EMI being paid and also the interest paid at the end of the loan tenure with which you can understand the cost of the loan.
  • If you are contemplating on a balance transfer, with the EMI calculator you can calculate the saving on the interest cost by such a balance transfer. Even the details of processing charges and pre-payment charges of various loan providers will be available which will enable you to calculate the overall differential cost of the loan by applying the processing charges of the new lender and the pre-payment charges of the present lender.

FAQs

What are the benefits of the J & K Bank Loan Against Property?

The following are the benefits of the J & L Bank Loan Against Property

  • Nominal processing charges
  • The rate of interest is reasonable.
  • Long-term repayment period till 7 years.
  • Even an amount as low as 50000/- can be availed against the mortgage of property.
  • The loan will be granted both for personal and business requirements. Specific product under the scheme for Trade and Service Sector to meet the working capital requirements of the business. The loan is provided either by way of Cash Credit or an 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.
  • Hassle-free loan procedure.

What is the security required for J & K Bank Loan Against Property?

Security by way of 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.

Who is eligible for the J & K Bank Loan Against Property?

The following can apply for the J & K Bank Loan Against Property

  • Salaried individuals, self-employed individuals/professionals, and businessmen are eligible for the loan against property.
  • The self-employed should have been in the current business for a minimum of 3 years and the salaried individuals should have confirmed employment with sufficient work experience with the present employer and should have a regular source of income.
  • 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 age at the time of the maturity of the loan should be over 65 years.
  • 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.

What is the processing charged for the J & K Loan Against Property?

Processing charges will be collected at 0.50% of the loan amount.

What is the maximum loan tenure for the J & K Loan Against Property?

The maximum repayment period for the term loan is 7 years.

For the Cash Credit and Overdraft facility to Trade and Service Sector the repayment is one demand. However, the facility will be for a period of 12 months with a review after completion of 12 months every year.

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