Jammu and Kashmir Bank
Jammu and Kashmir Bank

Jammu and Kashmir Bank

The Jammu and Kashmir Bank was founded on 1st October 1938. It commenced the banking business on 4th July 1939 and was considered the first of its nature and composition as a State owned bank in the country. It functions as a universal bank in Jammu & Kashmir and as a specialized bank in the rest of the country. It is also the only private sector bank designated as RBI’s agent for banking business, and executes the banking business of the Central Government, besides collecting central taxes for CBDT.

About Jammu and Kashmir Bank

Jammu and Kashmir Bank services follows a two-legged business model whereby it endeavours to increase lending in its home state leading to higher margins despite modest volumes, and simultaneously, seeks to capture niche lending opportunities on a pan-India basis to enhance volumes and improve margins. Jammu & Kashmir Bank financial services functions on the principle of ‘socially empowering banking’ and attempts to deliver innovative and unique financial solutions for household, small and medium enterprises. Listed on the NSE and the BSE, the Bank has a track record of uninterrupted profits and dividends for four decades. Its corporate headquarters is in Srinagar. The Bank has a network of 840 computerized bank branches and 1005 ATMs across the country as on 31st March 2016. It is also the sponsoring bank of J&K Grameen Bank. Its corporate headquarters is in Srinagar.

Vision and Mission

The Bank’s vision statement says that it aspires to catalyze economic transformation and capitalize on growth. It aims to engender and catalyze economic changes in Jammu & Kashmir and capitalize from the growth induced financial prosperity thus engineered. The goal of the Bank is to make Jammu & Kashmir the most prosperous state in the country, be helping create a new financial architecture for the J & K economy, with the Bank being at the centre of it.

The twofold mission of the Bank is to provide the people of J & K financial service and solutions of international standards and to be a super-specialist bank in the rest of the nation. These two things together will make it the most profitable Bank in the country.

Jammu & Kashmir Bank Loans

Jammu & Kashmir Bank Home Loan: the quantum of loan for fresh construction/purchase of house/flat is need based, subject to a maximum of 72 times of net monthly income salary. For carrying out repairs/renovations/additions/alterations to a borrower who is not availing any housing loan, the maximum amount of loan is Rs. 15 lakhs or 36 times of net monthly income/salary, whichever is lower. If the borrower is already availing housing loan from the Bank, he/she can get additional/supplementary finance of maximum Rs. 10 lakhs or 36 times of net monthly income. Salaried individuals working in Govt. Departments (State/Central) as a confirmed employee, or individuals working in Public Sector Undertakings/Autonomous Bodies/Reputed Companies/Bodies with a minimum of3 years of service, are eligible for this loan. Also, professionals/self-employed applicants (including doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretaries, management consultants, advocates, etc. with a minimum of 3 years standing in the current profession also satisfy the Jammu and Kashmir home loan eligibility criteria. If the borrower is a businessmen/businesswoman, he/she should have dealings with the Bank and have a minimum standing of at least 3 years in the business, in order to apply for this loan. The eligibility criteria also mentions that State/Central Govt. pensioners, (except family pensioners), drawing their monthly pension from the Bank whose spouse is alive and is eligible for family pension, can avail this loan. Joint borrowers/joint family members having regular monthly income and Non-Resident Indians are also eligible for the home loan.

Jammu and Kashmir Bank Personal Loan: The Saholiat/Saral Scheme of the Bank is disbursed in cash. Any permanent employee of Central/State Govt., Public Sector Undertakings (State and Central), Autonomous Bodies and Institutions can avail this loan. According to Jammu and Kashmir Bank loan details, the maximum quantum of finance is 36 months gross salary or Rs. 20 lakhs, whichever is lower. The repayment period is in 84 months EMI or remaining period of service, whichever is lower. This loan is offered with revolving type facility, as full limit can be restored on request of the borrower subject to the following – a. outstanding balance reduced to below 40% of the loan amount, b. at the time of reinstatement of the limit, the applicant must have sufficient remaining years of service so that the loan is repaid within the same.  C. The borrower should not have had more than two installments in arrears on any point of time during currency of loan, d. the borrower will have to furnish an undertaking from drawing and disbursing officer for intimating the Bank regarding their transfer and noting that outstanding from the Bank and the monthly installment obligation in their LPC forwarded to the next drawing and disbursing authority.

Jammu and Kashmir Bank Loan Against Property: This is an ideal product specially designed for individuals/business enterprises/professionals and self-employed individuals to provide a source of funds for expenditures of any nature, given that they have a minimum service/standing of 3 years. The minimum net annual income of the applicant should be Rs. 1 lakh in order to avail loan against property from Jammu and Kashmir Bank. The loan eligibility is 30 times the net monthly income or Rs. 100 lakhs whichever is lower. In case of individual borrowers, the income of the spouse can be taken into consideration to determine the loan amount. The repayment period is 84 months through EMI commencing one month after disbursement of the loan, as specified by Jammu and Kashmir Bank loan scheme

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