Looking for a Business Loan from Jammu and Kashmir Bank?

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Corporate Business Loans from Jammu and Kashmir Bank

Probably one of the few Jammu and Kashmir based banks in India, Jammu and Kashmir Bank offers a wide range of finance products to different segments of its customer base. The bank has a wide range of funded and non-funded facilities for its retail, corporate, MSME, NRI and other customers. The bank offers different business loans to its customers for various needs.

Some of business loans from Jammu and Kashmir Bank are:

  1. Commercial Vehicle Finance
  2. Commercial Vehicle Finance for Used Vehicles
  3. School Bus Finance
  4. Craft Development Finance
  5. Dastkar Finance
  6. Khatamband Craftsmen Finance
  7. Contractor Finance
  8. Construction Equipment Finance
  9. Saholiat (Term Loan for Business)
  10. Easy Working Capital Finance for Trade and Service
  11. Loan Against Mortgage of Immovable Property
  12. Fair Price Shop Scheme
  13. ATV/Snowmobile Finance Scheme
  14. Start-up Finance Scheme
  15. Help Tourism (For Kashmir Valley)
  16. Commercial Premises Finance

We give you a brief intro to the business loans below.

Jammu and Kashmir Bank Commercial Vehicle Finance

This loan helps Transport Operators buy brand new commercial vehicles of approved models/makes for business use. The maximum loan amount offered by the bank under this scheme is up to 85% of the on-road cost of the vehicle. This loan cannot be used to purchase a second-hand vehicle since the bank offers a separate loan scheme for the purpose.

Features of Jammu and Kashmir Commercial Vehicle Loan Scheme

Why this Loan?

Jammu and Kashmir Bank Commercial Vehicle Finance for Used Vehicles

This loan helps Transport Operators buy used commercial vehicles of approved models/makes for business use. The maximum loan amount offered by the bank under this scheme is Rs. 7.5 lakh per vehicle and Rs. 15 lakh per borrower.

Features of Jammu and Kashmir Bank Commercial Vehicle Loan Scheme

Why this Loan?

Jammu and Kashmir Bank School Bus Finance

This loan helps Societies, Trusts and other Corporate entities running educational institutions buy vehicles for transportation of students or office use. The maximum loan amount sanctioned under this loan is Rs. 13.95 lakh per bus.

Features of Jammu and Kashmir Bank School Bus Finance

Why this Loan?

  • The Jammu and Kashmir Bank School Bus Finance is meant for corporate entities running private educational institutions to acquire funds for the purchase of passenger buses
  • The loan must be repaid within 10 years

Jammu and Kashmir Bank Craft Development Finance

The Jammu and Kashmir Bank Craft Development Finance is a loan scheme designed to help artisans and craftsmen receive adequate and timely credit for their financial needs. The bank extends this loan to coppersmiths, tailors, boutiques, garment makers, etc.

Features of Jammu and Kashmir Bank Craft Development Finance

Why this Loan?

  • This loan can be availed for funding needs of artisans and craftsmen
  • The tenure for this loan is up to 5 years and the moratorium period is up to 3 months
  • The maximum loan amount sanctioned under this loan scheme is Rs. 1 lakh

Jammu and Kashmir Bank Dastkar Finance

The Jammu and Kashmir Bank Dastkar Finance is a loan scheme designed to help artisans and craftsmen receive funds to meet their working capital and capital expenditure needs. The bank extends this loan to artists and craftsmen involved in carpet weaving, shawl embroidery, wood carving, etc.

Features of Jammu and Kashmir Bank Dastkar Finance

Why this Loan?

  • This loan can be availed by artisans and craftsmen to meet their working capital and capital expenditure needs
  • The tenure for this loan is up to 2 years and the loan must be repaid in Equated Monthly Instalments (EMIs)

Jammu and Kashmir Bank Khatamband Craftsmen Finance

The Jammu and Kashmir Bank Khatamband Craftsmen Finance is a loan scheme specially designed to help craftsmen receive funds to meet their business needs. The bank extends this loan only to a khatamband, a unit of at least 4 craftsmen or more.

Features of Jammu and Kashmir Bank Khatamband Craftsmen Finance

Why this Loan?

  • This loan can be availed by artisans and craftsmen to meet their working capital and capital expenditure needs
  • The maximum loan amount offered by the bank under this loan scheme is Rs. 1,00,000 per Khatamband unit. The actual amount sanctioned by the bank depends on the estimated cost per head per month

Jammu and Kashmir Bank Contractor Finance

This loan scheme is specially designed to finance contractors working on orders issued by government departments and government undertakings. All construction contractors with at least one year of experience and at least 2-3 successfully-executed contracts are eligible for this loan

Features of Jammu and Kashmir Bank Contractor Finance

Why this Loan?

  • Jammu and Kashmir Bank Contractor Finance can be availed by contractors working on work contracts issued by the government department and undertakings
  • The maximum loan amount offered by the bank under this loan scheme is Rs. 2 crore
  • The bank extends this loan as a Secured Overdraft, Cash Credit facility, Bank Guarantee, etc.

Jammu and Kashmir Bank Construction Equipment Finance

This loan scheme is specially designed to help businesses engaged in construction activities get access to funds for purchasing construction equipment. The maximum loan amount offered under this loan scheme is Rs. 1 crore.

Features of Jammu and Kashmir Bank Construction Equipment Finance

Why this Loan?

  • Jammu and Kashmir Bank Construction Equipment Finance can be availed by businesses engaged in construction activities to purchase construction equipment
  • This is a secured loan and the bank asks for the hypothecation of assets created with the bank finance as primary security for this loan. The bank may also ask for collateral security
  • The tenure for this loan is up to 5 years and the moratorium period is up to 3 months

Jammu and Kashmir Bank Saholiyat (Term Loan for Business)

The loan helps businesses carry out different business activities right from acquiring land and building to purchasing machinery and vehicles. All projects are eligible for this loan as long as they are technically feasible and economically viable. This loan scheme is also known as the Jammu and Kashmir Bank Saral Finance Scheme for Businessmen.

Features of Jammu and Kashmir Bank Saholiyat

Why this Loan?

  • Jammu and Kashmir Bank Saholiyat can be availed by businesses to meet their working capital and capital expenditure needs
  • The maximum loan amount offered under this loan scheme is Rs. 5 lakh

Jammu and Kashmir Bank Mortgage Loan (Easy Working Capital Finance for Trade and Service)

The loan helps businesses in the trade and services sector finance their everyday operations such as for investment in current assets, purchase of raw materials, salary payments, power charges, etc. This is a need-based loan.

Features of Jammu and Kashmir Bank Easy Working Capital Finance for Trade and Service

Why this Loan?

Jammu and Kashmir Bank Loan Against Mortgage of Immovable Property

This loan helps businesses meet their needs by availing a loan against property. The immovable property must be located in metro, urban or semi-urban centres and property located in rural centre if it can be mortgaged for purposes other than agricultural use.

Features of Jammu and Kashmir Bank Loan Against Mortgage of Immovable Property

Why this Loan?

  • The loan is meant for business owners who want to avail a loan against immovable property for meeting business or personal needs
  • The maximum loan amount offered under the Jammu and Kashmir Bank Loan Against Property is Rs. 1 crore

Jammu and Kashmir Bank Fair Price Shop Scheme

This loan helps fair price shops meet their working capital needs. All dealers who have been granted dealership by Director of Consumer Affairs and Public Distribution for sale and storage of food grains and sugar are eligible for this loan.

Features of Jammu and Kashmir Bank Fair Price Shop Scheme

Why this Loan?

Jammu and Kashmir Bank ATV/Snowmobile Finance Scheme

This loan helps businesses raise funds to buy snowmobiles and All-Terrain Vehicles (ATVs) for commercial operations. The maximum loan amount offered by the bank under this scheme is Rs. 10 lakh.

Features of Jammu and Kashmir Bank ATV/Snowmobile Finance Scheme

Why this Loan?

  • The Jammu and Kashmir Bank ATV/Snowmobile Finance Scheme is meant for businesses who deal with renting snowmobiles and ATVs get funds to purchase these vehicles
  • This loan must be repaid within 5 years including the moratorium period. The moratorium period for this loan is 3 months or till the time ATV and Snowmobile starts commercial operations, whichever is earlier

Jammu and Kashmir Bank Start-up Finance Scheme

This loan helps people looking to set up new enterprises in the manufacturing and services sector to get financial assistance. The applicants must be 21 to 45 years of age to be eligible for this loan.

Features of Jammu and Kashmir Bank Start-up Finance Scheme

Why this Loan?

  • The Jammu and Kashmir Bank Start-up Finance Scheme is meant for people who are looking for financing a new enterprise in the manufacturing and services sectors
  • This loan scheme is available for Greenfield projects only
  • The maximum loan amount sanctioned under this loan scheme is Rs. 10 lakh

Jammu and Kashmir Bank Help Tourism (For Kashmir Valley)

This loan helps people looking for credit to convert a residential property into a guest house in the Kashmir Valley. This loan scheme is sanctioned only for the renovation or refurbishment of the residential property into a tourist guest house.

Features of Jammu and Kashmir Bank Help Tourism (For Kashmir Valley)

Why this Loan?

  • The Jammu and Kashmir Bank Help Tourism in Kashmir Valley is meant for people who are looking for a loan to convert a residential property into a tourist guest house
  • The maximum loan amount sanctioned under this loan scheme is Rs. 50,000 per room and Rs. 10 lakh per guest house

Jammu and Kashmir Bank Commercial Premises Finance

This loan helps people get funds for possession and use of commercial property such as a shop, office, etc. leased out by government, semi-government or autonomous bodies.

Features of Jammu and Kashmir Bank Commercial Premises Finance

Why this Loan?

  • The Jammu and Kashmir Bank Commercial Premises Finance is meant for individuals or businesses who are looking for funds for possession and use of commercial property leased out by government bodies
  • This is a need-based loan. The maximum loan amount sanctioned under this loan scheme depends on the needs as well as the repayment capacity of the borrower

Important Note: There is a possibility that the bank may offer more corporate loan options which are not yet published on the website. Therefore, we suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, etc. may be decided on a case-to-case basis.

Interest Rate

  • The applicable interest rate on Jammu and Kashmir Bank business loans is defined as the sum of two factors viz. One-year Marginal Cost of Funds based Lending Rate (MCLR) and Strategic Premium.
  •  As of April 2020, the one-year MCLR of Jammu and Kashmir Bank is 8.00%. The Strategic Premium depends on various factors such as the type of loan, quantum of loan, etc.

Documents Needed for Individuals

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/ PAN Card Issue Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • For term loans: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable

Documents Needed for Proprietorship and Partnership Firms

  • Loan Application Form duly filled and signed
  • Partnership Deed and Partnership Registration Certificate
  • ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
  • For Term Loans Only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable

Documents Needed for Private Limited and Public Limited Companies

  • Application Form duly filled and signed
  • Company ID Proof: Company’s PAN Card
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
  • Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security: Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
  • For term loans only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable

Reference Facts:

  • Jammu and Kashmir Bank Website: www.jkbank.com
  • Headquarters: Srinagar, Jammu & Kashmir
  • Call Centre Number: 1800 1800 234