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.

Upto 3 buses:
Primary
: Hypothecation of vehicle financed.
Collateral: Personal guarantee of trustees/promoters of the educational institution.

More than 3 buses:
Primary
: Hypothecation of vehicle financed.
Collateral: Mortgage of immovable property of value Equal to at least 50% of the loan amount.

As per latest service charges circular.

10 years.

For 7 years: Applicable MCLR+3.50% (Fixed).

Above 7 years: Applicable MCLR+4.25% (Fixed).

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.