Objective

Jammu and Kashmir Development Finance Corporation offers financial assistance to promote industrial growth in Jammu and Kashmir. The scheme supports new entrepreneurs as well as existing industrial units for construction, renovation and expansion of existing setups aiming to expand capacity or modernize operations.

Eligibility

1. Individuals, proprietary concerns, partnership firms, companies both private and public, and limited liability partnership firms.
2. The borrower must hold the necessary driving license or engage driver or drivers possessing valid license to operate the type of vehicle for which credit is sought.
3. Transport operators owning one or more trucks or buses are also eligible.

Purpose

Purchase of commercial vehicles with new chassis manufactured by standard companies and fabrication of body thereof.

Types of Vehicles

As would be declared a commercial vehicle by the competent transport authority from time to time.

Extent of Loan

Up to 80 percent of the cost of chassis and body fabrication, depending upon the credit worthiness of the prospective borrower, with a maximum quantum of term loan of ₹ 100.00 lakh.

Rate of Interest

The rate of interest will be charged by the Corporation equal to the State Bank of India Marginal Cost of Fund Base Lending Rate (MCLR) for 1 year tenor as revised from time to time for all lending cases.

Security

1. For loans up to ₹ 25.00 lakh For first time entrepreneurs, loans up to ₹ 25.00 lakh are allowed on the basis of net worth comprising assets and liabilities of the borrower, supported by affidavit duly notarized and KYC credentials, with hypothecation of the vehicle and guarantee cover of two guarantors of sufficient net worth.
2. For loans above ₹ 25.00 lakh to ₹ 50.00 lakh – Should have been in operation for a period of three years and should be making profit for at least the last two years. Balance sheet and profit and loss account of a registered sister concern may be considered in case of a new unit.
   

   
   Security Options

   Hypothecation of the vehicle along with third party guarantee of two persons having individual net worth equivalent to 150 percent of the loan amount

   Or

   Coverage under CGTMSE in accordance with the prescribed procedure. CGTMSE guarantee fee to be borne by the customer.

   Or

   Mortgage of immovable property having realizable sale value of at least 60 percent of the loan amount, along with personal guarantee of the mortgagor in case of third-party mortgage, with hypothecation of the vehicle and guarantee of two guarantors of sufficient net worth.

3. For loans above ₹ 50.00 lakh to ₹ 100.00 lakh

   Security includes hypothecation of vehicles and mortgage of immovable property having realizable sale value of at least 60 percent of the loan amount, along with personal guarantee of the mortgagor in case of third-party mortgage and guarantee of two guarantors of sufficient net worth.

Repayment

1. Maximum repayment period is seven years.
2. Repayment shall be in equated monthly installments.
3. Maximum moratorium period of four months.

Application Fees

The Corporation shall charge an application fee of ₹1000/- + GST as cost of application which shall be adjustable against the processing fee to avoid non serious applicants. The application fee shall have to be deposited with the Corporation against the proper receipt at the time of issue of checklist of formalities and loan application form.

Up-Front Fee

No upfront fee shall be charged for Term loans up to ₹25.00lac. Term loans beyond ₹25.00lac & up to 100.00lac shall attract upfront fee @ 0.375% of the Term loan sanctioned plus GST; Term loans beyond ₹100.00lac shall attract an upfront fee of 0.75% of the term loan sanctioned plus GST. The upfront fee paid shall be non-refundable.

Processing Fees

The Corporation shall charge processing fee as per the structure given here under:

*plus, GST as applicable

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Checklist of formalities to be complied with under SRTO financing scheme:

1. Proof of identity such as voter ID card, passport, Aadhaar card, driving license, or ration card
2. Proof of address such as recent electricity bill, telephone bill, bank pass book, or Aadhaar card
3. PAN card, Aadhaar card, and state subject certificate.
4. Statement of assets and liabilities of borrower or partners or directors by way of affidavit duly notarized.
5. Two self-attested photographs of the borrower.
6. Partnership deed in case of partnership firm duly registered. MOA and AOA in case of companies, along with board resolution to raise loan from JKDFC Ltd.
7. Route permit in case of passenger bus.
8. Proforma invoice of the chassis and body fabrication from a reputed or authorized dealer or body fabricator.
9. Driving license in case the borrower is a driver, or license of the driver who will drive the vehicle.
10. Three years audited balance sheet in case of transport companies or retail dealers with positive net worth for at least two years. For loans above ₹ 25.00 lakh, balance sheet and profit and loss account of registered sister concern may be considered in case of new unit.
11. Affidavit duly notarized regarding non availability of loan from any bank, with NOC from banks where loan was earlier availed if any.
12. Legal documentation post sanction as per standard legal practices.

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