Jammu and Kashmir Grameen Bank Loan Scheme for Financing Passenger Buses for Private Educational Institutions

Purpose:

Financing acquisition of passenger buses required by Private Educational Institutions for providing to and fro transport facility to the students on roll from their residences to the Educational Institution. The facility shall be restricted to purchase of buses of standard make and which are built strictly as per the specifications laid down for the purpose by Hon’ble High Court of Jammu & Kashmir.

Eligibility:

i. Private Schools in the area of operation of the Bank recognized by:
a. Chief Education Officer(s) of the district for schools running classes up to 5th standard.
b. Director of School Education, for schools running classes up to 8th standard with formal approval of the recognition
c. Administrative Secretary to Government School Education Department for classes 9th to 12th .
ii. In case of schools affiliated to CBSE or other State Boards, the certificate of affiliation and NOC from the concerned authority/School Education Department, must be in force as on date of application.
iii. Institutions specializing in professional or technical courses/education recognized by concerned appropriate Government Authority.
iv. Reputed coaching centres recognized by Competent Authority i.e. Director of School Education and having period of existence/operation of minimum 5 years and student strength of more than 200. Or any other Competent Authority as designated by the Govt of J&K from time to time. The certificate of recognition issued by competent authority must be in force as on date of application. The applicant institution must be of sound financial position and have a satisfactory repayment record in respect of credit facilities availed, if any, from any Bank.
v. Special care must be taken while extending the facility to coaching centres (in consideration of reputation of institute, economic viability, etc.).
vi. School must be established on proprietary land (owned or leased).
vii. Constitution of the borrower entity shall be individuals/trusts/society/institutions/associations etc.

Maximum Loan Amount:

Maximum 85% of the On-Road price of the vehicle/bus to be purchased. On road price will include Exshowroom price, fabrication cost, if any, cost of registration and first year insurance premium. TCS and any other charges shall not be considered for financing. However, the loan is restricted for purchase of maximum 10 school buses/vehicles per institution.

Margin:

Minimum 15% of the on road price of the vehicle/s.

Repayment:

i. Maximum 84 monthly EMIs where fabrication not required.
ii.Maximum 81 monthly EMIs where moratorium for fabrication is involved.

Moratorium:

Moratorium up to maximum of 2 months from the date of disbursement shall be permitted.

Security:

Hypothecation of vehicle/s to be purchased

Collateral:

Processing Fee:

0.50% of the loan amount.

* Conditions Apply