About J & K Home Loan
Home loan is nothing but a financial assistance from bank’s end to enable you to buy your dream home within your reach. You can borrow a home loan from any of the banks that is lending home loan at a competitive rate of interest.
The rate of interest is set to reduce with the introduction of a concept, known as Marginal Cost of Lending Rate (MCLR) by the Reserve Bank of India. From 1st April 2016, the floating rate of interest will be based on MCLR. This is a new calculation methodology of the lending rate in place of the earlier Base Rate regime. The banks will publish the MCLR for a fortnight, Month, a year, two year and three years on fixed date in a month. Based on the changes in MCLR, the rate of home loan will get reset by lenders at least once in a year. All the banks are supposed to mention the frequency of rate reset in the agreement papers itself. However, the rules for interest rates under the existing base rate remain unaffected with the introduction of MCLR. All the customers have the option to shift from base rate to MCLR.
J&K Bank offers home loan to those who want to buy a flat/house/plot or under-construction property. You can apply for a home loan if you fulfill the eligibility criteria. The bank charges a specific processing fee to disburse the loan. You can opt for a loan amount as per your requirement and eligibility. The rate of interest varies from different tenure and amount. Let’s take a look at the benefits and other eligibility criteria’s of the home loan.
Processing fee: The bank charges 0.25% of the loan amount with the minimum of ₹500 and maximum of ₹10,000 plus service tax extra as processing fee. The bank will not charge any processing fee from the customer in case of loan takeover from other banks.
J&K Home loan rate of interest for new home
| Amount | Interest Rate (p.a) |
|---|---|
| Up to INR 100 lakhs | Base Rate |
| Above INR 100 lakhs to INR 300 lakhs | Base Rate+0.20% |
| Above INR 300 lakhs | Base Rate+0.35% |
J&K Home loan rate of interest for construction of premises on land
| Amount | Interest Rate (p.a.) |
|---|---|
| Up to INR 20 lakhs | 15% |
| Above INR 20 lakhs | 15.50% |
J&K Eligibility Criteria
| Category | Eligibility Criteria |
|---|---|
| Salaried | Individual working in Govt. Department as confirmed employee Having 3 years of experience in working in Public Sector Undertakings/Autonomous Bodies / Reputed Companies /Bodies |
| Professionals/Self-employed | Professionals, self-employed individuals such as doctors, engineers, artchitects, dentists, chartered accountants, company secretaries, management consultants, advocates, etc., with minimum 3 years experience in the present profession |
| Businessmen/women | Businessmen/women having experience of minimum 3 years in the present business with good financial record |
| Pensioners | State/Central Govt. Pensioners, except family pensioners, drawing their monthly pension from our bank whose spouse is alive and is eligible for family pension. In such cases guarantee of spouse eligible for family pension & mortgage of house/flat should be obtained invariably. |
| Others | Non-Resident Indians are also eligible for financing under the scheme |
Repayment of J&K home loan
The repayment of the loan amount and EMI is calculated on the basis of tenure you have opted and the amount you have borrowed.
The loan for carrying out repair or additions shall be repaid in Equated Monthly Installments (EMIs) within the maximum period of 10 years that also include moratorium, period of 3 months.
J&K Bank Home Loan Application
You can visit the website of J&K Bank to submit your application for a home loan. Subsequently, J&K Bank executives will visit the property, look at its condition and then prepare the legal & technical report. Based on the findings of the report, the valuation amount of the property will be set by J&K Bank. You can get a loan upto 85% of the valuation amount.