Financing of passenger buses to private educational institutions.

Private schools recognized by Education Department, Government of Jammu and Kashmir. In case of schools affiliated to CBSE/other State Boards, the certificate of affiliation and NOC by the Education department, Government of J&K must be in force.

The applicant school must have of sound financial position besides satisfactory repayment record in respect of credit facilities availed, if any, from any bank.

Maximum of 13.95 lacs per bus.

10% of the cost of chasis plus fabrication and actual registration and insurance charges.

: Hypothecation of vehicle financed.


  • Upto Rs.10.00 lacs :  NIL
  • Above Rs.10.00 lacs and upto & Inclusive Rs.50.00 lacs:  3rd party guarantee of Trustees/Promoters of the Educational Institutions.
  • For loans above Rs.50.00 lacs:  Mortgage of tangible immovable property of value not less than 50% of the loan Limit.  However, it is clarified that any school already availing bus loans for amount below Rs.50.00 lacs has to provide immovable collateral security for the additional loan only, if by virtue of the fresh/additional loan facility the total loans (outstanding+fresh) under the scheme exceed Rs.50.00 lacs. In case the school is not availing any loan & applies for a fresh loan exceeding Rs.50.00 lacs, it has to provide collateral for the entire amount of loan.

As per latest service charges circular.

10 years.

  • For a period up to 7 Years:  

    • 3Y MCLR+1.50 % (fixed) (For Fresh Connections
    • 3Y MCLR+1.00 % (fixed) For Existing Customers)
  • For a period exceeding 7 Years:       
    • 3Y MCLR+2.50 % (fixed) (For Fresh Connections)
    • 3Y MCLR+2.00 % (fixed) (For Existing Customers)

Click here for rate of Interest

The hypothecated vehicle/s to be comprehensively insured against all risks, at the cost of the borrower, with usual bank clause and policy drawn in the joint name of the bank and the borrower.