Jammu and Kashmir bank or J&K bank, in short, is a private sector banking and financial service provider. It is, as the name says, based in Jammu and Kashmir.
Jammu and Kashmir home loans are some of the best in the market and their interest rates are quite attractive. J&K bank provides home loan for multiple reasons.
With a Jammu and Kashmir home loan you can buy a plot of land to build your home, to build a new house or apartment on a piece of land you already have or if you have renovations or repairs to do around the house.
Jammu and Kashmir also has a bank specifically for commercial properties too. One can take out a loan to purchase and use commercial properties like shops, offices etc.
J&K home loans are available for all people. Employees of state and central government offices and private companies, self-employed individuals and also retired individuals are eligible for a home loan from J&K.
The loan amount that one can apply for a home loan is 4 times of the net annual income. However there is a cap on the loan amount of maximum of Rs.50 lakhs.
J&K Bank Home Loan Interest Rates
Interest Rates are as of 2019
Loan Amount:Interest rate
Up to Rs.100 lakhs:1-year MCL
RRs.100 lakhs to Rs.300 lakhs:
1 year MCLR+0.20%
More than Rs.300 lakhs:1 year MCLR+0.35%
Eligibility Criteria for J&K Bank Home Loan
Minimum age:18 years on the date of sanction
Maximum age:70 years at the time of loan maturity
Bank Home Loan Eligibility Criteria
The eligibility criteria for a home loan from J&K bank are not complicated.
Those individuals who have a regular source of income and belong to the following categories can avail the home loan:
Permanent employees of the state government, central government or semi – government undertakings.
Employees of reputed companies and working for a minimum of 3 years.
Self – employed individuals and people working in business for a minimum of 3 years in the current business line.
Individuals involved in agriculture and other related activities.
Retired employees who used to work at state government, central government and public sector undertakings.
The applicant has to be a minimum age of 18 years at the time of applying.
The maximum age limit of the applicant has to be 70 years at the time of maturity of the loan.
J&K Bank Home Loan Schemes
Interest Rate :Less than Rs.15 lakh: applicable MCLR+3.25%
More than Rs.15 lakhs: As per the bank’s decision
Loan amount : 4 times the net annual income of the applicant with a maximum cap of Rs.50 lakhs.
Loan tenure: 5 to 7 years
Margin: 25% of the lease premium.
J & K Bank has a type of term loan available for the sole purpose of acquisition and subsequent use of commercial properties. Commercial properties like shops, offices, etc. will fall under this category.
The eligibility criteria for this type of finance is:
This finance requires security form the applicant. The primary security will be the mortgage of the leasehold rights in the acquired property. As a form of collateral, a third-party guarantee of two persons or mortgage of another property can be given.
J&K Bank Home Loan Types
Main home loan by the bank
Home loan from J & K bank is available for residents who have a regular income.
The said residents are eligible to apply for the loan if they are working in the state government, central government and privates organizations for a minimum of three years.
J & K sets the interest rates for their home loan based on MCLR set by RBI. MCLR is the minimum rate at which banks are allowed to lend out money to their customers.
J & K bank has a moratorium period of 9 months, during which there are no requirements for payment. This period is 12 months for applicants from J & K.
The repayment period is quite high. For salaried professionals, the loan tenure extends up to 30 years, including the moratorium period. For all other customers, the mandate is up to 20 years.
J & K have made their loan available both for self-employed individuals and people in business. Retired individuals also are eligible to apply for a home loan. One can avail the home loan for many different reasons like:
To construct or purchase houses or flats.
To buy houses built by public agencies.
To obtain an apartment for rental purposes.
To get a home where the applicant is living as a tenant
To purchase a plot to build a house on.
To make renovations, repairs, and additions
To procure a second house.
Amount of loan can be taken under this loan scheme:
The approval of the loan amount under a home loan from J & K bank depends on many factors. The decision for the approval of loan amount is on the basis of the factors such as:
Assets and liabilities
Cost of the proposed house or flat.
If the loan is taken out for repairs and renovations to the applicant’s house or flat, the maximum loan limit is Rs.25 lakhs.
While the loan taken out to buy land has a different loan limit. A maximum amount of Rs.50 lakh or 60% of the cost of land, whichever is less is applicable.
If the loan is taken to construct a completely new house, the cost of construction minus the margin s taken to make the decision of the loan amount considerable.
The house loan limit also changes based on the category of the applicant. If the applicant is a pensioner who has worked for state or central government, the maximum loan amount granted is 36 times the pension with the condition that the loan is repaid off by the time applicant turns 70 years of age.
J&K Bank Home Loan Scheme for NRI or PIO
J & K lets Non – Resident Indians (NRIs) and person of Indian origin (POIs) apply home loans. All eligibility criteria applicable to a resident Indian applies to NRIs and POIs save for a couple of extra factors.
Particular care should be taken to prove income if you are an NRI. You can avail a house loan from J&K Bank to buy or construct residential and also commercial buildings.
Citizens of certain countries, however, are not allowed to apply for a loan from J & K bank and might require permission from RBI before proceeding with the application. Citizens of Bangladesh, Nepal, Bhutan, China, Sri Lanka, Pakistan, and Iran fall in this category.
The applicant needs to be of at least 18 years of age at the time application of the loan, while the maximum age limit of the applicant is required to be 70 years at the time of loan maturity.
The other requirement of the bank is that the applicant needs to be in service for a minimum number of years for eligibility.
The bank also has strict rules for repayment of the loan in case of NRI and POIs. There should be regular payments. It is even acceptable through remittances from their country of residence.
Home Loan Eligibility for NRI or PIO
Millions of Indians, over the years, have moved out of India in search of job or higher education. They are generally called NRIs or POIs as per government definition.
To be legally classified as non-resident Indian, one has to be residing outside India for more than 182 days or more. A POI or a person of Indian origin, as per government definition, is an individual who has a passport of another country other than Afghanistan, Iran, China, Bangladesh, Bhutan, Pakistan, Sri Lanka.
An NRI or a POI might want to build a residential home or even for commercial purposes once they decide to come back to the country. To achieve this, they would start looking for home loans from banks.
Thankfully, RBI lets Indian banks to lend out to NRIs and POIs. All the same rules regarding eligibility that applies to a resident Indian will apply to them too. The application process is not complicated. The basic age eligibility criteria that apply to an NRI or POI are:
Minimum age must be 18 years of age at the time of application.
Maximum age limit at the time of maturity of loan must not be more than 70 years of age.
Details of interest rates and other fees and additional charges that apply to an NRI or POI home loan applicant’s home loan are:
Interest Rate:8.60 % to 8.95 %
Processing charge: 0.25 % of the loan subject to a minimum of Rs.5,000 and maximum of Rs.25,000.
Loan amount :Rs.50 lakh or 60 % of the cost of construction whichever is less.
Loan tenure: Up to 30 years for salaried individuals and up to 20 years for all other applicants
Margin: 10 % to 25 % based on the loan amount
NRI and applicants must ensure to make timely payment for the loan as it is a big deciding factor on their home loan application approval. The income proof will also be closely scrutinized before the loan is sanctioned to them. There are also a couple of extra points to keep in mind for a house loan from J & K bank.
If you are POI with a passport from one of the following countries, your loan application will be rejected. You would be required to take permission from RBI before you start the application process for the loan from your bank of choice. Citizens of Bangladesh, Pakistan, Iran, China, Bhutan, Nepal, Sri Lanka will fall into this category.
The house loan taken by an NRI or POI can be used to purchase or to build a residential or a commercial property. Any number of properties can be purchased or constructed with your home loan.
The bank requires you to give a proper proof of repayment with your application. Repayments can be done in the form of remittances from their foreign country of residence. Payment for the loan can also be made from the sale proceeds of the sale of any immovable property in India.
How To Apply for J&K Bank Home Loan
Check eligibility: To save on time, be sure to check for the home loan eligibility from J & K Bank. Multiple factors are taken into account, which, is why checking eligibility is essential.
Apply in person at a bank branch: Once you are sure that you are eligible to get a home loan approved, you can walk into any J&K bank branch near you and apply in person. You can also talk with a customer representative and get your queries clarified in person.
Apply online: If you don’t have the time to apply for the loan in person, you can the application process online too. Visit the J & K website and start your application.
Document Checklist for J&K Bank Home Loan
Stated here are all the primary credentials that are necessary, but in some cases, you may have to give some additional documents.
Document Category:What can be submitted
Identity proof:PAN, Passport, Driver’s license, etc.
Address proof:Utility bills, Passport, etc.
Income proof:Bank statements of 6 months, salary slips, form 16/income tax return copies
Property documentation:The valuation report, lawyer’s report regarding Title clearance.
As per RBI’s guidelines, all banks are required to collect KYC documents from their customers.
Credentials to prove your identity, income, address and most importantly proof that the ownership of the land over which you plan to build your house.
For self-employed individuals, you may have to submit some additional documents such as:
Income proof in the form of profit and loss account.
Evidence of business continuation in the current line of business.
Income tax returns copies of the last two years.
If there is a guarantor or co-applicant, then the above-stated documents list will also apply to them.