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Jammu & Kashmir Bank is a private sector bank which was founded in 1938. It offers consumer banking, corporate banking, financial services, private banking, cash management and mobile banking products amongst other services. The bank has more than 850 domestic branches spread across the nation.

The Jammu and Kashmir Bank offers car loans for customers to own their dream car. Customers can get up to 90% of on-road cost of the vehicle and a comfortable repayment period of up to 7 years. Their new car loans can be availed to purchase new cars, vans, jeep, SUV, or MUV for private use, while used car loans allow you to purchase an old car or jeep that is not more than 5 years old.

Jammu & Kashmir Bank Car Loan interest rates are based on RLLR. The latest RLLR fixed by the bank is 7.20%.

Snapshot of Jammu & Kashmir Bank Car Loans

Jammu Kashmir Bank Car Loan Interest Rates

New Car Loan Interest Rate

RLLR + 0.75% (Floating rate)

RLLR + 1.50% (Fixed rate)

Used Car Loan Interest Rate

For a period up to 4 years - RLLR + 3.75%

For a period exceeding 4 years - RLLR + 4.75%

Loan Amount

Up to 90% of Ex-showroom price or On-road price

Repayment Tenure 

12 months – 7 years

Processing Charges

0.50% of Loan amount + GST subject to a 

Minimum of Rs.1500 & 

Maximum of Rs.15,000

Prepayment Charges


Salient Features of Jammu & Kashmir Bank Car Loan

  • Get up 90% of the ex-showroom price of the car as loan amount
  • Apply online and get instant approval, avoiding the hassle of visiting the branch
  • Get loan to purchase of new passenger cars, used cars, Multi Utility Vehicles (MUVs) and SUVs
  • Get repayment tenures of up to 7 years to comfortably repay the loan
  • Get instant car loan of up to 75% for used car purchases
  • Easy and simple documentation process 
  • Very low processing charges
  • NIL prepayment penalty

Factors affecting your Jammu & Kashmir Bank Car Loan Interest Rates

The bank doesn't give every borrower the same interest rate. Jammu & Kashmir Bank car loan interest rates differ on the basis of a few factors, such as age, income, employer, credit score, etc. Here is a look at the most significant factors that impact the interest rates for your car loan at Jammu & Kashmir Bank:

Credit Score

Your credit report is a major factor in determining your car loan interest rate. A good credit score means that your history of repayment is good. Higher loan amounts and lower interest rates are guaranteed. A higher credit score is used by banks as an indication of the creditworthiness. This greatly changes the eligibility of your loan amount and your interest rate.


A higher salary means that the debt is repaid on time. Banks offer better lending rates to persons with higher incomes. Banks still prefer salary earners over self-employed people, since wages mean that the account gets daily cash flow. However, self-employed professionals have an edge over salaried workers since they earn more than they do. However, even if you have a higher income but have taken several other loans and your DTI is high, then you may not get the best possible interest rates.

Your Age

The age of the borrower plays an important role during the car loan application process. The younger the creditor, the greater the number of years he would have to repay the loan. Car loans will be made available to people who are 21 years of age. Unlike older applicants, loan amount and interest rates are very favourable for younger applicants.

Vehicle Model and Age

In the event of a car loan, the vehicle will serve as collateral. In the event of not getting the EMIs, the bank or NBFC will seize the car. The model and age of the vehicle are then weighed when setting interest rates. New cars from a reputable manufacturer have lower interest rates relative to older models. Used cars often come with high interest rates as the value of the car depreciates with age.

Type of Employment & Employer

Employment with a reputable company would certainly get you a decent deal on interest rates on your Jammu & Kashmir Bank Car Loan. In authorizing the loan, several banks have a list of accredited employers and reputable bodies to which they refer. Employment in these companies guarantee the security of work and the flow of income to bankers. You are also allowed to seek an offer of higher car loan amounts and lower interest rates.

Relationship with the lender

Preference is often extended to bank clients with a long-term relationship, relying on the fact that their credit record is easier to view. If you are a loyal Jammu & Kashmir Bank customer, the bank will be able to review your account history, any recent credit or credit card charges and your general financial status. Therefore, for car loans, an existing customer is granted preferential interest rates.

Adding a co-applicant

If you have another earning member of the family, you can add them to the loan as a co-applicant so that their income is also taken into account while processing your application for car loans. If both of your income is entered, the result is a higher repayment potential and thus a lower interest rate.

Amount of down payment

While Jammu & Kashmir Bank gives you up to 90% of the vehicle's ex-showroom cost as a loan value, if you can make a higher down payment, you can negotiate better interest rates. Higher down payments mean lower debt balances and greater repayment potential. Banks are actively searching for low-cost lending consumers to reduce their default credit risk. So when you offer a higher down payment, you have a shot at having a lower interest rate.

Existing liabilities and investments

Last but not least, your current loans and obligations play an important part in assessing the eligibility of your car loan and interest rates. If you have current obligations, the repayment potential would be limited. This is perceived to be a high risk plan for the lender. It would also place more pressures on the cash flow. Therefore, an individual with a very low or no current liability is a preferred candidate for any bank.

How to negotiate for the best Car Loan Interest Rates with Jammu & Kashmir Bank?

Jammu & Kashmir Bank Car Loans come with affordable interest rates and longer repayment tenures. They are also offering up to 90% of ex-showroom value with the lowest processing fees in the car loan market. Still, there are a few factors one should consider before settling in for a Car Loan:

Be up to date with your Credit Score: As stated earlier, credit score plays an important role in getting the best loan terms. Higher the credit score, lower the interest rate. Know the different credit score ranges and the corresponding interest rates offered by the lender. This allows you to plan ahead and improve your credit score beforehand to take advantage of the best loan offers.

EMI Payments: Finding out the approximate monthly EMI for the expected loan amount gives clarity on your monthly budgeting. Your Car Loan EMI will include your principle and interest components. You can use CredtiMantri’s Car Loan EMI Calculator to determine the approximate monthly EMI so that you can determine your repayment affordability.

Cost of Car Insurance: It is a must to get annual car insurance for every car in India. Car Insurance premium is determined on various factors like the make, model and year of manufacturing of the vehicle. Car Insurance is a costly affair and you should find out beforehand the approximate annual car insurance premium so that you can get your finances in line.

Maintenance and Repairs: Keeping your car in good condition takes quite an amount of money for its regular maintenance and repairs. Find out the warranty and maintenance options available for your vehicle. You can negotiate for longer warranty or free maintenance offers with the dealer to reduce this particular burden.

What is the eligibility criteria to get a Jammu & Kashmir Bank Car Loan?

Eligibility Criteria

Eligibility Details


For New Car Loans - 18 years - 70 years

For Used Car Loans – 21 years – 65 years

Loan Tenure

7 years

Loan to Value Ratio

90% of ex - showroom price

Income Criteria

Employment Type

Minimum Gross Annual Income 

Permanent Employees of State / Central Government, Semi-Government Undertakings, Autonomous Bodies

Rs.2.50 Lakhs

Regular Employees of Private Limited Companies / Organizations, Reputed Establishments and Contractual Employees of Central/State Government, Semi-Government Undertakings, Autonomous Bodies

Rs.3.00 Lakhs

Persons engaged in agricultural and allied activities with at least 3 years of experience

Rs.4.00 Lakhs

Professionals, Self Employed Individuals & Proprietorship Concerns with at least 3 years of experience in profession/business

Rs.4.00 Lakhs

Retired Employees of State/Central & PSU’s (Public Sector Undertakings) maintaining their pension accounts with our Bank

Rs.2.00 Lakhs

Jammu & Kashmir Bank Car Loan Interest Rates FAQs:

1. Is there any benefit to adding a co-applicant to your car loan application?

Yes, of course. Adding a co-applicant increases your chance of getting competitive interest rates on your Jammu & Kashmir Bank Car Loan. Also, working with a reputed employer can get you additional preference.

2. What are the documents required to apply for a Jammu & Kashmir Bank car loan?

The most common documents required to apply for a car loan are:

  • Application form
  • KYC
  • Photographs
  • Identity Proof
  • Address Proof
  • Age Proof
  • Bank Statements
  • Signature Verification
  • Income Proof
  • Latest Salary Slip / Form 16
  • Income Tax returns of 2 previous financial years along with complete financial/audit report.
  • Income Tax Returns of 2 previous financial years.
  • Other Documentation
  • Business Stability proof / Ownership proof
  • Employment Stability Proof
  • Partnership deed and Letter signed by all partners authorising one partner
  • Companies and Societies: Resolution by Board of Directors (or such managing body) and Memorandum and Articles of Association

3. What is the processing fee for Jammu & Kashmir Bank car loans?

Jammu & Kashmir Bank charges a processing fee of 0.50% of the loan amount + GST, subject to a minimum of Rs. 1500 & a maximum of Rs. 15,000.

4. Can I prepay my Jammu & Kashmir Bank car loan?

Yes, you can prepay your Jammu & Kashmir Bank Car Loan without any prepayment penalty.

5. Does Jammu & Kashmir Bank ask for any collateral or guarantee to sanction a car loan?

Hypothecation of the purchased vehicle and bank’s charge registered with the RTO serves as the primary security for car loans. The bank also requires the following guarantees:

  • No Collateral for permanent employees of State and Central Government, Government Undertakings & Autonomous bodies drawing salary through our Bank.
  • For All Other applicants, guarantee of one person is required.
  • For Pensioners, the guarantee of a spouse eligible for family pension & additional guarantee of one person is mandated.

6. What is the repayment tenure available for my Jammu & Kashmir car loan?

Customers can get a comfortable repayment period of 12 months up to 7 years.

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