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Jammu & Kashmir Bank Car Loan Eligibility

The Indian automobile industry has expanded exponentially, all thanks to the increasing demand for personal transport such as cars. With numerous car loan offers available in the market, it is easy to buy cars for any individual in India. Jammu & Kashmir Bank offers car loans at very competitive prices. Car loans from Jammu & Kashmir Bank can be one of the most cost-effective solutions for buying a car.

Jammu & Kashmir Bank Car Loan Eligibility Criteria

Jammu Kashmir Bank Car Loan Eligibility

Jammu & Kashmir Bank offers car loan to following individuals.

  • Salaried individuals. In case of employees on contractual basis – they should be in the contractual job for a period of at least 1 year and the remaining contract period should be longer than the chosen repayment period)
  • Self-employed individuals, professionals, and proprietorship concerns
  • Individuals in agricultural activities or associated services
  • Retired Employees of Central or State Government, Public Sector Undertaking
  • Joint borrowers

Eligibility for A

  • Age of applicant should be in the range of 21-60 years, or the age of retirement is considered, whichever is earlier as at loan maturity
  • Applicant must have been in present employment or job for at least a year
  • Minimum gross annual income should be Rs. 3 Lakhs

Eligibility for B & C

  • Minimum age of applicant must be 21 years and maximum can be 70 years as at loan maturity
  • Applicant must have had at least 3 completed years into the business
  • Minimum gross annual income should be Rs. 4 Lakhs

Eligibility for D

  • Age of applicant at the time of maturity should be a maximum of 70 years
  • Minimum gross annual income should be Rs. 2 Lakhs

Eligibility for E

  • Maximum age of applicant can be 70 years at maturity
  • Minimum gross annual income should be Rs. 2 Lakhs

Eligibility for Jammu & Kashmir Bank Used Car Loan

Salaried Individuals:

  • Minimum age of applicant must be 21 years and maximum age can be 58 years at the time of loan maturity
  • Minimum period of employment should be 3 years
  • In case the applicant holds an account with Jammu & Kashmir Bank and draws a salary from the same, a letter of undertaking can be submitted to cut the employment period requirement to 2 years. Such letter of undertaking must be sourced from the employer

Self-Employed Individuals:

  • Applicant has to be at least 21 years old at the time of loan application
  • Maximum age should be 65 years at the time of loan maturity
  • He or she should be in the same business for a minimum period of 3 years

Partnership Firm:

  • A partnership firm, to be eligible for a car loan, must have been in existence for a period of 3 years

Documentation Requirements for Jammu & Kashmir Bank Car Loan

The applicant’s credit history and credit score are critical factors to be considered by a bank before lending a car loan. It helps in determining the eligibility for car loan amount. It reflects the capability and intent of an applicant for repaying the loan. Getting a car loan is an easy process since applicants can get an instant approval, provided they submit the complete list of requisite documents for Jammu & Kashmir bank car loan. There are many factors that are considered while approving a car loan at Jammu & Kashmir Bank. These include income of the applicant, car prices, credit history of the applicant, car model, and applicant’s employment profile. Below is the list of documents that need to be submitted for getting a car loan from Jammu & Kashmir Bank.

Salaried Individuals:

  • 3 months’ salary slips along with Form 16
  • Identity Proof
  • PAN Card copy
  • Recent 6 months bank statement
  • Photographs
  • Car Price Quotation from authorized dealer
  • Current Address Proof Driving License/ Passport/ Voter ID/ Aadhaar Card

Self Employed Individuals:

  • 2 years Income Tax Return (minimum of Rs. 2 lakhs)
  • PAN Card copy
  • Recent 6 months bank statement
  • Car Quotation from Showroom
  • Identity Proof
  • Current Address Proof DL/ Voter ID/ Passport/ Aadhaar Card
  • Photographs

In case of both new car loan as well as used car loan application, a private limited company or a public limited company or a partnership firm should have been in existence since at least the previous 3 years and should be able to furnish proof of the same.

Application Process for Jammu & Kashmir Bank Car Loan

The approval and verification process of Jammu & Kashmir Bank car loan is very easy and straightforward. It is also very quick for existing customers of the bank. Applicants can apply online for the car loan and get pre-approved car loan at reasonable interest rates. Upon approval, the loan amount gets directly credited to the applicant’s account in case of an existing customer.

For new customers, the process involves an online application or direct download of application form. This can be obtained from the official website or from the nearest branch of Jammu & Kashmir Bank. Customers can also reach out to the customer care number for taking forward the application process.

Jammu & Kashmir Bank also arranges for officers to personally visit the applicant and source application form along with documents. A verification process is then carried out to help understand the personal and professional background of the applicant. Unless there are any discrepancies, the loan approval process moves to the next level and after negotiation around interest rates and tenure, an acknowledgement is sent to the applicant.

Factors Impacting Eligibility of Car Loan

Jammu & Kashmir car loan interest rates and other loan aspects are dependent on the following factors.

Credit Score –  A credit score acts as a validation of an applicant’s previous performance regarding credit card and loan repayments. A loan applicant gets points for every payment made towards previous loans. Any kind of default or delay in these payments can reduce the credit score and have an impact on interest rates. A credit score above 750 is considered reasonable as well as healthy.

Applicant’s Income –  Banks generally view high income as a safe bet for granting loans. If an applicant’s income increases, he or she will make repayments on time and hence are preferred by banks.

Employment – Banks also consider the employer of the applicant and the employer’s reputation. This helps in determining the interest rate because a well-known employer means a safe job and hence higher capability to repay loans. The nature of employment is also considered while granting car loans.

Customer Loyalty –  Existing customers tend to get better interest rate offers as compared to new customers. The loyalty of customers is taken into consideration while deciding the interest rates.

FAQs: Jammu & Kashmir Bank Car Loan Eligibility

(1) How is the value of a used car determined by the bank?

The used car’s value is generally determined using the current market value of the new car of the same category and configuration. Depreciation, as applicable, is reduced from this amount to determine the final value of used car.

(2) Is there any penalty for prepaying the loan?

Prepayment can be made only after 6 months of the car loan start date. New cars do not attract any prepayment penalty. For used cars, there is a 2% penalty for prepayment of the Jammu & Kashmir Bank car loan.

(3) How many vehicles can I buy with a single car loan?

You can buy a maximum of 2 vehicles under the used car finance scheme of Jammu & Kashmir Bank. A maximum prescribed limit of Rs. 15 Lakhs is granted as part of such a scheme.

(4) Which cars can I buy using Jammu & Kashmir car loan?

You can buy any car, van, jeep, SUV, or MUV by opting for the Jammu & Kashmir car loan, as long as it is meant for private use.

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