J&K Bank Cash Credit Scheme

To provide hassle free cash credit facility to :

  • Permanent Employees/ Central Government, Government / Semi-Government Undertakings & Autonomous Bodies drawing salary from our Bank.
  • Non-Priority
  • The facility shall be revolving in nature up to the age of 52 years or 8 years before the age of retirement whichever is earlier. The drawing power (DP) will thereafter be reduced on borrower’s birthday every year on pro-rata basis by reducing the principal amount so that the facility gets, adjusted at the age of 59 or 1 year before the age of retirement whichever is earlier. The interest will be serviced by the borrower as and when applied.
  • Under this scheme the facility can also be sanctioned in favor of employees with age of over 52 years. However the facility will be sanctioned on dropline limit basis as under:

Age in years

Maximum Limit

Upto 52

6 times salary credited in the account or Rs. 6.00 Lakh, whichever is lower

53

5 times salary credited in the account or Rs. 5.00 Lakh, whichever is lower

54

4 times salary credited in the account or Rs. 4.00 Lakh, whichever is lower

55

3 times salary credited in the account or Rs. 3.00 Lakh, whichever is lower

56

2 times salary credited in the account or Rs. 2.00 Lakh, whichever is lower

57

equal to salary credited in the account or Rs. 1.00 Lakh, whichever is lower

Quantum of finance:

  • Minimum Finance: Rs. 50,000.00
  • Maximum Finance: 6 times average of previous three months’ salary credited in the account; or Rs. 6,00,000 whichever is lower.
  • Applicants shall be provided a Credit Card over and above the credit facility provided under the Cash Credit Scheme of the Bank for Employees as per the following criterion (as per circular No. 614 dated 13/01/2017 of Task Force – Digital Transformation)

S.No

Maximum Permissible Bank Finance under the scheme

Credit Card Variant

1

Rs. 2.50 Lakh and above

With a credit limit of Rs. 1.00 Lakh

2

Rs. 1.25 Lakh to Rs. 2.49 Lakh

With a credit limit of Rs. 0.50 Lakh

3

Rs. 50 thousand to Rs. 1.24 Lakh

With a credit limit of Rs. 0.25 Lakh

  • Drop-line method: The facility shall be revolving in nature up to the age of 52 years or 8 years before the age of retirement whichever is earlier. The drawing power (DP) will thereafter be reduced every quarter on pro-rata basis by reducing the principal amount so that the facility gets, adjusted at the age of 59 or 1 year before the age of retirement whichever is earlier. The interest will be serviced by the borrower as and when applied.
  • Minimum age of Applicant: 21 years.
  • Maximum age of Applicant at the time of loan maturity:-59 years or one year less than age of retirement whichever is earlier.
  • Stipulation of minimum take home salary of 40% shall not be insisted for this loan scheme, however the Interest outgo/ payable in this loan scheme shall be added to deduction for granting loan (s) under other schemes of the bank.
  • Primary: NIL
  • Collateral: NIL
  • 0.2% of limit amount.
  • 1 year MCLR+3.50%, p.a. fixed rate of interest with monthly rests

Click here for rate of Interest

  • No penalty on prepayment or / and foreclosure of the loan.