The J&K Bank Cash Credit Scheme is a non-priority product aimed at addressing the cyclic liquidity needs of salaried employees.
Eligibility:
Permanent employees of Central Government, State Government/Semi-Government Undertakings & Autonomous Bodies drawing salary from J&K Bank are eligible for the scheme.
Nature of Facility/Quantum/Repayment:
The facility is revolving in nature up to 8 years before the age of retirement of the employee. The drawing power (DP) will be reduced on the borrower’s birthday every year on a pro-rata basis by reducing the principal amount so that the facility gets adjusted by 1 year before the age of retirement. The interest will be serviced by the borrower as and when applied. The credit facility can be sanctioned in favor of employees who are nearing their date of retirement on a drop line limit basis. The quantum of finance ranges from a minimum of Rs. 50,000 to a maximum of 6 times the average of the previous three months’ salary credited in the account, or Rs. 6,00,000, whichever is lower.
Repaying Capacity:
There is no stipulation of minimum take-home salary for this loan scheme. However, the interest payable in this loan scheme shall be added to deductions for granting loans under other schemes of the bank.
Age of the Applicant:
The minimum age of the applicant is 21 years, and the maximum age at the time of loan maturity is one year before the age of retirement.
Margin:
There is no margin requirement for this scheme.
Security:
Primary and collateral security are not required for this scheme.
Processing Charge:
The processing charge is 0.25% of the loan amount plus GST, with a minimum of Rs. 500.00 plus GST and a maximum of Rs. 1000.00 plus GST.
Rate of Interest:
The rate of interest for this scheme is subject to change and is 1-year MCLR+3.50% per annum fixed, with monthly rests and annual reset.
Pre-Payment:
There is no penalty for prepayment or foreclosure of the loan.
Friendly Asked Questions
Who is eligible for the J&K Bank Cash Credit Scheme?
Permanent employees of Central Government, State Government/Semi-Government Undertakings & Autonomous Bodies drawing salary from J&K Bank are eligible for the scheme.
What is the maximum quantum of finance available under the scheme?
The quantum of finance ranges from a minimum of Rs. 50,000 to a maximum of 6 times the average of the previous three months’ salary credited in the account, or Rs. 6,00,000, whichever is lower.
Is there a margin requirement for this scheme?
No, there is no margin requirement for this scheme.
What is the rate of interest for this scheme?
The rate of interest for this scheme is subject to change and is currently 1-year MCLR+3.50% per annum fixed, with monthly rests and annual reset.
Is there a penalty for prepayment or foreclosure of the loan?
No, there is no penalty for prepayment or foreclosure of the loan.