The finance under this scheme shall be available for purchase of fresh commercial vehicles or new chassis and/or fabrication. The commercial vehicles will include passenger buses & mini-buses only.

  • Individuals / Proprietorship/partnership firms & Limited companies owning / operating passenger’s buses/mini-buses and registered with the RTO of Doda, Bhaderwah or Kishtwar. Transporters having route permit to ply on Batote-Kishtwar Road shall be eligible irrespective of the place of registration.
  • The borrower should have sufficient net worth to pay for the margin and initial recurring expenses. In case where a borrower does not meet this requirement, a co-borrower having sufficient net worth can be included.
  • Ownership of a pre-owned commercial vehicle is mandatory.
  • Minimum age of Applicant: 21 years
  • Maximum age of Applicant at loan maturity: 65 years
  • Commercial Driving License (for self-operating by individuals).
  • Existing /Erstwhile borrowers with no history of default and subject to other eligibility conditions shall also be eligible.

Margin will be calculated on the project cost of vehicle (chassis, body building & initial insurance) excluding registration charges. The borrower will be required to deposit the entire margin upfront with the bank to be released subsequently along with the loan component directly in favour of the supplier/fabricator to ensure proper end use of funds.

  • Maximum number of vehicles to be financed under the scheme shall be 3 subject to a maximum finance amount of  30 lacs. The cost of each vehicle shall include cost of initial insurance also.
  • Finance proposals in excess of the above should be considered under the extant JK Bank Commercial Vehicles finance.
  • Maximum number of vehicles to be financed per applicant shall not exceed the existing number of vehicles owned by the applicant.

Maximum repayment period of 72 months including an initial moratorium of 2 months. The repayment shall be in Equal Monthly Installments.

Primary Collateral
Hypothecation of vehicle to be purchased. Banks name as hypothecate to be got noted in the books of the RTO and also the Registration Certificate. 3rd party guarantee of 2 persons

0.20% subject to a minimum of  500/-

Prepayment shall be allowed without any prepayment charges.