J&K Bank Business Loan

Please Note: Jammu & Kashmir Bank is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.

Jammu and Kashmir Bank is a J&K-based private sector bank providing a range of financial services. Headquartered in Srinagar, J&K bank is a state-owned bank that offers numerous types of business loans to its customers nationwide. Details of the business loan options offered by J&K Bank are provided below.

Types of J&K Bank Business Loans

J&K Bank – Saral Finance Scheme
Interest Rate	11.25% p.a. onwards
Nature	Term Loan
Loan Amount	30 months net monthly income or Rs. 5 lakh (whichever is lesser)
Processing Fees	Rs. 1000 + GST
Eligibility	Existing borrower with min. 3 years of dealings with J&K bank Platinum & Gold Current Account holders with min. 1 year standing
Repayment Period	Up to 5 years
Security	3rd party guarantee of 1 person ECS/RECS mandate to be obtained
Margin	Nil

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges. With effect from 10th Dec 2022, J&K Bank 1 year MCLR is 8.50% 

Saral Finance Scheme for Businessmen can be used for any personal requirement.

J&K Bank – Start-ups Finance Scheme
Interest Rate	8.35% p.a. onwards
Age Criteria	Min. 21 years & Max. 45 years
Loan Amount	Min. 2 lakh and Max. Rs. 10 lakh
Processing Fees	Rs. 500
Eligibility	51% of the shareholding and controlling stake with 1 entrepreneur of a non-individual enterprise
Repayment period	Max. 7 years, including 2 years moratorium period for term loan
Availed by	Green Field Projects only
Nature	Composite loan to cover 100% of project cost
Security	Hypothecation of all assets financed by the bank

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges

Under Start-ups Scheme, lots of activities are included which are mentioned below:

• Agriculture
• Biotechnology
• E-commerce
• Educational institutions
• Electronics
• Food products
• Handicrafts
• IT and allied services
• Livestock
• Media and entertainment
• Poultry
• Textiles
• Tourism, etc.

J&K bank offers preference to applicants who are recommended by Shri Mata Vaishno Devi University Technology Business Incubation Center Society (SMVDU TBIC), Centre for Incubation & Business Acceleration (CIBA) and Centre for Trainings & Skill Development (CTSD) authorities of Jammu and Kashmir.

J&K Bank – Construction Equipment Finance
Interest Rate	10.85% p.a. onwards
Nature	Term Loan
Loan Amount – Existing borrowers	85% of invoice value subject to maximum of  Rs. 100 lakh
Loan Amount – Others	75% of invoice value
Processing Fees	0.50% of loan amount + GST
Repayment Tenure	5 years with 3 months moratorium period
Prepayment Charges	Nil
Margin – For Existing Borrowers	15% of invoice value
Margin – For Others	25% of invoice value
Security	Hypothecation of construction equipment to be purchased

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges

Construction Equipment Finance can be used to purchase new construction equipment, such as cranes, excavators, backhoe loaders, dumpers, compactors, dozers, drillers, graders, etc.

Construction Equipment Finance can be availed by individuals, public and private companies, partnerships, sole proprietorships and trusts involved in construction activities.

J&K Bank – Commercial Vehicle Finance
Interest Rate	9.50% p.a. onwards
Age Criteria	Min. 21 years & Max. 65 years
Loan Amount	85% of the on-road cost of vehicle for first 3 months
Repayment Tenure	Max. 84 months with 2 months moratorium period
Nature	Term Loan
Penal Charges	2% p.a.
Margin	For Priority Sector: 20% irrespective of loan limit For Non-Priority Sector: Upto  200 lakh: 25% Above  200 lakh: 30%
Business Existence Tenure	Min. 2 years
Commercial Driving License	Mandatory
Security	Upto Rs. 10 lakh: Hypothecation of vehicle to be financed

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges

Commercial Vehicle Finance can be availed for the purchase of new commercial vehicles of various makes and models and fabrication for commercial purpose. This finance scheme is offered to limited companies, individuals, proprietorships, partnership firms owning and operating or plan to own and operate transport vehicles for carrying goods/passengers on hire.

Additional Types of Business Loans and Bank Accounts

The list of additional types of Business Loans offered by J&K Bank is as follows:

• ATV / Snowmobile Finance Scheme
• Commercial Premises Finance
• Contractor Finance
• Craft Development Finance
• Craftsmen Livelihood Finance Courses
• Dastkar Finance
• Establishment of Mini Sheep Farms in Private Sector
• Fair Price Shop Scheme
• Handicrafts Sustenance Finance (Outside Tripartite Agreement)
• Help Tourism (For Kashmir valley only)
• J&K Bank Karobar Card
• Khatamband Craftsmen Finance
• Loans against Mortgage of Immovable Property
• Mortgage Loan for Trade & Service Sector
• School/Passenger Bus Finance

Several bank accounts can be opened from J&K Bank for business purposes that are as follows:

• Basic Current Account
• Gold Current Account
• Grameen Current Account
• Platinum Current Account
• Premium Current Account
• Premium Plus Current Account

Also Read: How to get a business loan in India without Security

FAQs

Q. How much business loan amount can I avail from J&K Bank?
Ans. The maximum loan amount that can be availed is up to Rs. 1 crore for construction equipment.

Q. What is the maximum repayment period of a business loan offered by J&K Bank?
Ans. The maximum repayment tenure for business loans is up to 7 years.

Q. How can I track my Jammu and Kashmir Bank Business Loan Online / Offline?
Ans. To track the loan application you can visit the official website of J&K bank, download mobile app or call the bank’s toll-free number. You can also visit the nearest bank branch for more details.

Q. What are the repayment options for business loans in J&K bank?
Ans. There are several repayment options, such as cheque, net banking, ECS, PDC, etc.