Jammu and Kashmir Bank

Jammu and Kashmir Bank India is often referred to as J&K Bank. It was established on Oct 1, 1938, by Hari Singh, the Maharaja of J&K, who invited eminent investors to become shareholders and directors of the bank. The well noticed family comprised of Bhaghat, Pesten Gee and Abdul Aziz, as they acquired major holdings.

The bank started doing good business in the very next year and, hence, it was established as a Semi-State Bank under the control of central government of India

It is the first state owned bank of India which has unique characteristics and services listed below -

  • Jammu and Kashmir Bank India carries out banking business of the central government

  • Despite 53% share of Government equity, J&K Bank is regarded as a private sector bank

  • It is the one and only lender and banker of last resort to government of Jammu and Kashmir

  • A private sector bank permitted as an agent of RBI for banking

  • It collects taxes pertaining to central government of direct taxes in J&K

Jammu and Kashmir Bank Loans

The Jammu and Kashmir Bank India, provides several loans to its customers. Following are the types of loans the bank offers-

Housing Loans: They provide loans for the purchase/construction of house and all forms of residential properties for up to Rs. 75 lakh (subject to maximum loan amount of 60 times the monthly net take home salary of the applicant). They offer loans even for repair or renovation purposes, subject to a maximum of Rs. 10 lakhs. The eligibility criterion says the loan taker should be an employee of government, semi-government., or civic bodies with minimum five years of work experience.

Reputed businessman can also be granted the loan, provided they meet the financial eligibility criteria.

Rate of interest depends upon many factors and it would be 6% for the initial 6 months, 9.25% for less than 2 years, and 9% for less than 10 years.

Educational Loan

They provide educational loan of Rs. 10 lakh for studies within India, and Rs. 20 lakh for studying abroad. Eligible candidates should be Indian nationals, and security in the form of personal guarantee of guardian/parent is needed for availing educational loans.

Automobile Loans

They provide loans for 2 wheeler, 4 wheelers (both new and used), school bus and other commercial vehicles. Criteria remaining the same (as Housing Loans), the minimal amount of the car loan is Rs. 75k and maximum is Rs. 25 lakhs.

Special Loans

They provide special loans, such as tourism (only for the citizens of Kashmir), agricultural loan, fruit advances scheme, craft development business, commercial premises finance, laptop/PC finance, technology upgrade and cultivation schemes.

Insurance Schemes

MetLife is incorporated as a joint venture between Jammu and Kashmir Bank India and MetLife International Holdings, and it is considered as one of the fastest growing life insurance companies in India.

Other than MetLife, Bajaj Alliance has entered into an alliance with Jammu and Kashmir Bank India to distribute their non-profit products at all their branches across India.

Cards Offered

They offer pin based global access card with no transaction fee at J&K Bank’s ATM and purchases.

For customer benefits, they provide blue, silver and gold empowerment cards for those who have an annual salary of above Rs. 80,000 (Rs. 1.5 lakhs for self employed).

All types of Visa and Master cards are offered, called Merchant Acquiring that can also extend American express card acceptance.

Other Services and Facilities

Support Services: Power to access your account across any J&K branch; like every other bank, they provide internet, SMS and telephone banking services.

Depository Services: It is like a bank, where securities are held in dematerialized (electronic) form. The depository network is available at Jammu, Srinagar and Delhi branches.

Third Party Services: Mutual Fund has become an important investment option. The bank has tie-ups with Bajaj Alliance, Union Financial services and MetLife insurance companies.

RTGS: Real Time Gross Settlement is the safest and fastest way of transferring the money across the banks in India and is applicable for payouts more than Rs. 2 lakhs.

Jammu and Kashmir Bank India allows customers to open current accounts, savings accounts, term deposits and recurring deposits just like all the other banks, with attractive rate of interests which are as good as those offered by other private sectors banks like HDFC, ICICI and Axis Bank.