J&K Bank Commercial Vehicle Loan Scheme Check Eligibility

For purchase of fresh commercial vehicles or new chassis and/or fabrication for commercial purpose or for captive use. The commercial vehicles will include passenger buses, trucks, tippers, oil and gas tankers taxis, mini buses, light commercial vehicles, tempo, auto rickshaws and any other mode of transportation under public carrier permit. The vehicles should be of approved models/makes.

Term Loan.

• Individuals / Proprietorship/partnership firms & Limited companies owning / operating or proposing to own / operate transport vehicles for carrying passengers or goods on hire.
• Minimum period of existence in case of firms & companies: 2 years in business.
• The borrower (s) should hold the necessary driving license or engage driver (s) possessing valid license to operate the type of vehicle for which credit is sought.
• The borrower(s) should have been granted a permit by an appropriate authority to ply the vehicle (s) for passengers or goods traffic for hire.

• Maximum 80% of the On-Road cost of the vehicle which shall include the cost of the chassis, Fabrication Cost, one-time Registration charges and Road Tax, first year insurance premium charges and interest for upto first three months.
• Maximum 85% of the cost of the vehicle which shall include the cost of the chassis, fabrication cost and interest for upto first three months.

For Priority Sector: 20% irrespective of loan limit.

For Non-Priority Sector:
i. Upto  200 lacs: 25%
ii. Above  200 lacs: 30%

• Upto  10 lacs: Hypothecation of the Vehicle to be financed.
• Above 10 lacs to  25 lacs: Hypothecation of the Vehicle to be financed and third party guarantee of two persons with sound means to withstand the liability.
• Above  25lacs to  50 lacs:Hypothecation of the Vehicle to be financed plus third party guarantee of two persons .In addition sufficient collateral security with Realizable value not less than 50% of the loan amount sanctioned shall be obtained at the time of sanction of the loan facility.
• Above 50 lacs: : Hypothecation of the Vehicle to be financed plus third party guarantee of one person.In addition sufficient collateral security with Realizable value not less than 100% of the loan amount sanctioned shall be obtained at the time of sanction of the loan facility.

In case of borrowers availing loan facility for more than one vehicle, the collateral security shall be provided by the borrower for the incremental portion of the loan only.

Maximum Tenor: 84 months i.e. 7 years inclusive of Maximum Moratorium Period of 3 months  .

• Upto Rs. 20000/- :                               NIL
• Upto Rs.20000/- to Rs. 2.00 Lakh:      0.20% of the loan amount Plus applicable GST Min: Rs. 300
• Above Rs.2.00 Lakh to Rs.100 Lakh : 0.25% of the loan amount Plus applicable GST
• Above Rs. 100.00 Lakh :                     1% of the loan amount Plus applicable GST

NIL. However in case of takeover of facility by other bank/FI., foreclosure charges shall be levied as per latest service charges Schedule of bank.

3Y MCLR+1.50 % (fixed).(For Fresh Connections)
3Y MCLR+1.00 % (fixed) (For Customers having existing exposure under the segment)

Click here for rate of Interest