J&K Bank Cash Credit Scheme
The product is aimed at addressing the cyclic liquidity needs of salaried employees.
Permanent Employees of Central Government, and State Government / Semi-Government Undertakings & Autonomous Bodies drawing salary from our Bank.
- Non-Priority
- The facility shall be revolving in nature up to 8 years before the age of retirement of the employee*. The drawing power (DP) will thereafter be reduced on borrower’s birthday every year on pro-rata basis by reducing the principal amount so that the facility gets adjusted by 1 year before the age of retirement. The annual reduction can be spread over four quarters.The interest will be serviced by the borrower as and when applied.
- Under this scheme, the credit facility can be sanctioned in favor of employees who is nearing his/her date of retirement. However the facility will be sanctioned on drop line limit basis as under:
| Remaining Service | Maximum Limit |
| Up to 8 years | 6 times salary credited in the account or Rs. 6.00 Lakh, whichever is lower |
| 7 years | 5 times salary credited in the account or Rs. 5.00 Lakh, whichever is lower |
| 6 years | 4 times salary credited in the account or Rs. 4.00 Lakh, whichever is lower |
| 5 years | 3 times salary credited in the account or Rs. 3.00 Lakh, whichever is lower |
| 4 years | 2 times salary credited in the account or Rs. 2.00 Lakh, whichever is lower |
| 3 years | equal to salary credited in the account or Rs. 1.00 Lakh, whichever is lower |
Quantum of finance:
- Minimum: Rs. 50,000.00
- Maximum : 6 times average of previous three month’s salary credited in the account; or Rs. 6, 00,000.00 whichever is lower.
* The scheme is customized for all retirement age brackets that are in vogue in the Government service sector i.e. 60, 62 and 65 years.
- Stipulation of minimum take home salary shall not be insisted for this loan scheme, however the Interest outgo/ payable in this loan scheme shall be added to deduction for granting loan (s) under other schemes of the bank.
- Minimum age of Applicant: 21 years.
- Maximum at the time of loan Maturity: One year before the age of retirement.
- Stipulation of minimum take home salary of 40% shall not be insisted for this loan scheme, however the Interest outgo/ payable in this loan scheme shall be added to deduction for granting loan (s) under other schemes of the bank.
- NIL
- Primary: NIL
- Collateral: NIL
- 0.25% of the loan amount plus GST,
- Minimum of Rs. 500.00 plus GST.
- Maximum of Rs. 1000.00 plus GST.
- 1 year MCLR+3.50 p.a. fixed Rate of Interest with monthly rests and Annual Reset.
- No penalty on prepayment or / and foreclosure of the loan.