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Jammu and Kashmir Bank was established in 1938 and was one of its kind state owned banks. The bank was acquired as a scheduled bank in the year 1971 and received the status as an ‘A’ class bank in the year 1976. The bank has a variety of products to offer the customers like corporate banking, retail banking, wealth management, insurance, loan, etc.

Among its loan products, the bank offers easy and convenient loan options for purchase of new cars, used cars as well as two wheelers.

The bank’s used car loans are available for purchase of cars that are not older than 5 years. The details of the bused car loans of the bank are available here.

Eligibility for J&K Bank Used Car Loan

Jammu And Kashmir Bank Used Car Loan

The eligible persons that can apply for the bank’s used car loans are listed below.

  • Permanent employees of,
    • Government Undertakings
    • Semi-Government Undertakings
    • Autonomous Bodies
    • Public Sector Undertakings
    • Private Companies
    • Reputed Establishments
  • Professionals
  • Self-Employed Individuals
  • Proprietorship Concerns
  • Partnership firms
  • Public Limited Companies
  • Private Limited Companies

The bank has laid down a few conditions with regards to the age limits and employment status of certain applicants. The details of the same are tabled underneath

ParticularsSalaried IndividualsSelf-Employed IndividualsPartnership FirmPrivate/ Public Limited Companies

Minimum Age limit

21 years at the time of application

21 years at the time of application



Maximum age limit

Below 58 years at the time of maturity of the loan

Below 65 years at the time of maturity of the loan



Minimum Period of Employment/ Existence

Minimum 3 years in current service

(2 years for individuals drawing through the bank and letter of undertaking is available with the bank

Minimum 3 years in business

Minimum 3 years of existence

Minimum 3 years of existence

Documents required for Jammu & Kashmir Bank Used Car Loan

The bank requires a basic list of KYC documents along with the income proof and vehicle-related documents as part of its documentation process. The basic documents required by the bank are enlisted below.

  • Address Proof (Aadhaar Card/ Electricity Bill/ Water Bill/ Ration Card, etc.)
  • Identity Proof (Aadhaar Card/ PAN Card/ Voter’s ID, etc.)
  • Recent Photographs
  • Income Proof (last 6 months salary slips)
  • Bank statements (past 6 months)
  • ITR Returns for the past 1 year at least.
  • Proforma Invoice of the vehicle
  • Sale agreement from the authorized dealer/ seller of the car.

Key Features of the J&K Used Car Loans

The bank provides many key features for persons seeking used car loans from the bank. The rate of interest, tenure of the loan, and many other features make it an attractive option for the consumers.

The details of the key features of the bank’s used car loans are provided hereunder.

Tenure – 

The bank provides flexible tenure for the borrowers of used car loans. The tenure for pre-owned/used vehicles that are less than 3 years old is 72 months or 6 years. The tenure for vehicles that are older than 3 years but not more than 5 years is 48 months (4 years).

This is a unique feature of Jammu and Kashmir Bank as the tenure for used car loans is usually the same for all kinds of vehicles in other banks offering similar loans.

Rate of Interest – 

The rate of interest charged by the bank for its used car loans is fixed in nature and depends on the tenure of the loan. The current rate of interest with effect from 28th March 2020 is tabled below.

PeriodRate of Interest
Up to 4 years (48 months)RLLR + 3.75% = 11.35%
More than 4 years (48 months) up to 6 years (72 months)RLLR + 4.75% = 12.35%

Margin –

The margin requirement of the bank for used car loans also depends on the age of the vehicle. The details of the same are tabled below.

PeriodMargin Requirement
Up to 3 years25% of the value of the vehicle
More than 3 years up to 5 years30% of the value of the vehicle

For this purpose, the value of the vehicle will be based on the current market value of a new car of the same make and model and will be adjusted for depreciation as per following guidelines.

Age of the vehicle% of depreciation to be adjusted

Up to 6 months


More than 6 months up to 1 year


More than 1 year up to 2 year


More than 2 years up to 3 year


More than 3 years up to 4 year


More than 4 years up to 5 year


Amount that can be sanctioned as loan – 

The maximum amount that can be sanctioned as loan by the bank for purchase of used cars is calculated to be lower of,

  • Rs. 15,00,000
  • 2.5 times of net annual income.

The other points to be remembered in calculating the amount of loan are,

  • Income of the spouse can be counted in calculating the income limit provided that the spouse will provide a guarantee for the loan.
  • The maximum number of cars that can be financed using the bank’s used car loans cannot be more than 2 at any point.
  • This limit is further restricted to Rs. 15,00,000 as the maximum loan that can be sanctioned to a person for purchase of used cars.

Security - 

Hypothecation of the vehicle to be purchased out of the loan is considered to be the primary security by the bank.

Collateral – 

The bank does not require any third party guarantee in the case where the employees are drawing their salary from the bank and the employer’s letter of undertaking is available. In other cases, the bank will require a third-party guarantee of at least 2 persons. The bank may decide to waive off this requirement in case of applicants having their accounts with the bank and having a good reputation and relationship with the bank. The bank may ask for post-dated cheques in such cases.

Prepayment Charges - 

The bank allows prepayment of the loan taken only after the completion of 6 months. The bank charges a prepayment penalty of 2% on the amount prepaid anytime during the tenure of the loan.

Other Charges - 

The bank does not charge any upfront charges or any other hidden charges for the used car loans. However, the bank does charge Rs. 200 per cheque in case of bounced cheques.

Jammu and Kashmir Bank Loan application process

Jammu and Kashmir bank provides the online option as well as the physical option to apply for the loans. The online option however, is not in the complete form. The customers will have to visit the bank for the application form and for submitting the documents.

Customers can request a call back from the bank for applying for the loan. For this, they will have to provide their details at the bank’s website in the following link.

Home  Apply online

Here, the applicant will have to fill in the details like,

  • Full name
  • Email Id
  • Mobile number
  • Address
  • Select the state and the branch from the drop down options
  • Then, the applicants will have to select the product of the bank they need from the drop down box (in this case - used car loans)
  • Finally enter the captcha code displayed on the screen and submit the request.

The bank will contact the applicant based on the details provided and will explain the highlights of the loan to be availed, documents required, processing time, rate of interest, etc.

The applicants can track the status of their loan application by visiting the website of the bank and clicking on the following link

Home  Loan Application Tracker

Applicants will have to submit the details of their Application ID and the Application Key registered along with it. Finally the verification code displayed on the screen will have to be submitted to know the loan application status.

Jammu and Kashmir Bank Customer Care

The various ways for the customers to contact the bank are highlighted below.

Registered Office/Corporate Headquarters
M A Road
Srinagar 190 001
Jammu & Kashmir

FAQs: Jammu & Kashmir Bank Used Car Loan

1. What is the toll free number of Jammu and Kashmir Bank?

The toll free number of the bank is 1800 1800 234.

2. Does the bank charge any prepayment charges on used car loans?

The bank allows prepayment of the used car loan only after completion of 6 months at a charge of 2% on the amount prepaid.

3. What is the maximum tenure under the bank’s used car loans?

The bank provides a maximum tenure of 72 months for under used car loans.

4. Can a person get a loan to purchase a used car that is 6 years old?

No. Jammu and Kashmir Bank provides loans for purchase of used cars provides they are not more than 5 years old.

5. Can a person check the loan application status online?

Yes. Applicants can check the loan application status online by visiting the bank’s website and clicking on the following link. Home Loan Application Tracker

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