J&K Bank Car Finance Scheme (Fresh Cars) for Individuals / Proprietorship Concerns.

To provide finance for purchase of new “Cars/ Van/ Jeep/ SUV/ MUV For Private Use Only” at :

“Ex-Showroom” Prices.


On-Road” *Prices, if opted for by the borrower.

*On-Road Price shall mean Ex-Showroom Price plus One Time Registration Charges plus Insurance Premium (first year only).

  • Finance shall be provided for Ex-Show Room price and Registration only, in case customer opts to self-finance the Insurance Premium.
  1. Permanent Employees of State / Central Government, Government / Semi-Government Undertakings & Autonomous Bodies.
  2. Employees of Private Limited Companies, Private Organizations,  Reputed Establishments & Employees on contractual basis with Central/State Government, Government/ Semi-Government Undertakings& Autonomous bodies*
  3. Professionals, Self Employed Individuals & Proprietorship Concerns.
  4. Persons engaged in agricultural and allied activities.
  5. Retired Employees of State / Central Government, Public Sector Undertaking.
  6. Joint borrowers are also eligible.

*Employees on contractual basis with Central/State Government, Semi-Government Undertakings & Autonomous bodies shall be eligible, if they have been in current contractual job for a period not less than I year and the remaining contract period is longer than the chosen repayment period. Employees on adhoc basis shall not be eligible.

Eligibility Criteria: (For a & b)

  • Minimum age of Applicant: 21 years.
  • Maximum age of Applicant at loan maturity: 60 years or age of retirement whichever is earlier.
  • Minimum employment: The applicant must have been in current employment for a period of not less than 1 year.
  • Minimum Gross Annual Income: 3.00 Lakh

Eligibility Criteria: (For c & d)

  • Minimum age of Applicant: 21 years
  • Maximum age of Applicant at loan maturity: 70years
  • Experience: At least 3 years in business.
  • Minimum Gross Annual Income: 4.00 Lakh

Eligibility Criteria: (For e)

  • Maximum age of Applicant at loan maturity: 70 years
  • Minimum Gross Annual Income: 2.00 Lakh

i) Maximum  Finance for purchase of Car at Ex-Showroom Prices :

36 months net monthly salary of the applicant or 3 times net annual income. However, in case of employees of private organizations, employees on contract basis and pensioners, the maximum finance shall be limited to24 months net monthly salary or 2 times net annual income.

Applicants from eligibility criteria as depicted at a, b, c & d who do not fulfill the income criteria as laid down in the scheme but have an annual income of more than Rs. 2.00 lakh, may be granted maximum finance upto 24 months net salary or 2 times net annual income.

Gross deductions inclusive of loan EMI/s (existing as well as proposed) should not exceed 60% of gross income.

In case of married individuals, certified income of spouse can also be considered provided the spouse is a co-borrower.

In case of Joint borrowers, it is to be ensured that at least one of the joint borrower(s) is able to repay the loan along with interest up to the maximum prescribed age of 60 / 70 years.

As per the provisions of Motor Vehicles Act, 1988, where a motor vehicle is jointly owned by more than one person, the application for registration shall be made by one of them on behalf of all the owners and such applicant shall be deemed to be the owner of the motor vehicle for the purpose of this act. Accordingly, it shall be ensured that in all such cases an option be got exercised from the joint borrowers to specify the name of the applicant borrower in whose name they want to get the vehicle registered.

The ceiling of the loan amount shall be Rs 50 Lakh.

ii). Maximum Finance for purchase of Car at On-Road Prices :

The parameters for determining the maximum amount of finance in this case shall be same as detailed above at Para 4(i) except for the following addition:

 The “One time Registration Charges and Insurance premium for first year (Optional)” shall be financed as part of the total loan to be provided subject to maximum permissible amount of limit of finance for which a borrower is eligible under the relevant clause of this scheme.

The loan amount reflected in the loan account shall be inclusive of loan amount granted for Registration and Insurance.

  • 10% of Ex-Showroom / On-Road price, as applicable, for permanent employees of State and Central Government, Government Undertakings & Autonomous bodies drawing salary through our Bank and where letter of undertaking from employer is available.
  • 10% of Ex-Showroom/ On-Road price, as applicable, for Platinum / Gold Current Account holders.
  • 15% of Ex-Show room/ On-Road price, as applicable, for all the others.

In addition to the payment / deposit of margin through the existing Procedure / Channels, Margin Money / booking amount can be paid directly to the dealer through POS terminal installed at dealer outlets across India. The facility shall not be restricted to J&K Bank POS Machines. The dealer should provide a valid receipt for margin / advance / booking amount received. Deposit of Margin money by POS terminal will not entail waiver of processing charges

0.50% of loan amount subject to a minimum of 500.00

Flexible repayment options ranging from 12 to 84 months in equated monthly installments. In case of “On –Road Prices" option, repayment schedule shall be fixed for the entire loan amount which shall include   Ex-Showroom Price plus One Time Registration Charges plus Insurance Premium (first year only), as applicable.

Fixed-11.25 % per annum with monthly rests.
Floating-B.R + 1.00 % per annum with monthly rests. 


As prescribed by A&AP Division, Corporate Headquarters from time to time.

A rebate of 0.25% in the interest rate may be allowed to women borrowers under the scheme.

0.50% of loan amount subject to a minimum of Rs. 500.00

(Conditions Apply)