Srinagar, Oct 4: Showing concern to the increasing number of road accidents in Doda, Bhaderwah and Kishtwar, state’s premier financial institution, the J&K Bank, has come up with two special schemes to help the situation.
 “Since past few years these areas have become prone to repetitive road accidents. Most of the accidents have been caused due to overloading, which in turn is the result of insufficient number of passenger vehicles in the areas,” said a senior official of JK Bank.
 He said the bank, in order to address this issue, has launched two exclusive schemes for Doda, Bhaderwah and Kishtwar namely JK Bank Passenger Bus/Minibus Finance and JK Bank Finance for refurbishing old Passenger Buses/Minibuses.”
 Under the JK Bank Passenger Bus/Mini Bus Finance the bank will provide the finance for the purchase of fresh commercial vehicles.
 To get the finance under this scheme the interest party – individuals or proprietorship or partnership firms and limited companies owning and operating passenger’s buses/mini buses – should be registered with the RTO of Doda, Bhaderwah or Kishtwar.
 “Transporters having route permit to ply on Batote-Kishtawar road are also eligible irrespective of the place of the registration,” he said.
 The individual seeking the loan under this scheme should have a minimum age of 21 years and a maximum of 65 years. The borrower should have sufficient net worth to pay for the margin and initial recurring expenses. “Incase a borrower does not meet this requirement, a co-ownership having sufficient net worth can be considered,’ the official said.
 “The applicant should also have the ownership of a pre-owned commercial vehicle and a Commercial Driving License for self operating,” he added. 
 The existing and erstwhile borrowers with no history of default and subject to other eligibility conditions are also eligible for the scheme.
 Giving details he said, “Under this scheme the maximum number of vehicles that can be financed to an individual, partnership firms or limited company shall be 3 subject to maximum finance amount of Rs 30 lakhs. The cost of each vehicle shall also include cost of initial insurance,” he said.
 “The borrower will also be required to deposit 15 per cent margin to be calculated on the project cost of the vehicle excluding the registration charges with the bank. This will be released subsequently along with the loan component directly in the favour of the supplier to ensure proper end use of funds,” he added. 

Repayment policy:
 The maximum repayment period for this scheme is 72 months including an initial moratorium of two months. The repayment shall have to be made in equal monthly installments.
For this scheme the bank has decided to keep the rate of interest 1per cent lower than the usual commercial vehicle finance.
“We have also tried to introduce an easy documentation process so as to make the finance hassle free. Also the relaxation and processing charges which used to be 0.5 per cent are reduced to 0.2 per cent for this scheme,” he said.

Second scheme:
 The second scheme, JK Bank Finance for refurbishing of old Passenger Buses/Mimi Buses, will be available for the repairing of the vehicles which are older less than three years.
 “The finance under this scheme is available for repairing or overhauling of engine or for the replacement of minor/major spares and for the body refabrication but excluding optional accessories like Music Systems etc. However refurbishing has to be undertaken at authorized workshops only,” he said. 
 Under this scheme also the applying individuals, or proprietorship or partnership firms and limited companies owning and operating passenger buses/ minibuses need to be registered with the RTO of Doda, Bhaderwah or Kishtwar.
 “Other conditions for the eligibility are the same as for the first scheme except the condition that the vehicle under this scheme should be older not more than three years and that only the vehicles financed by the J&K Bank or vehicles with non-encumbrance shall be financed through this scheme for refurbishing or overhauling,” he said.
 “Maximum quantum of finance under this scheme is Rs 1 lakh per vehicle or 70 per cent of the cost of refurbishing whichever is less and only two vehicles per party can be considered for the purpose,” he said.
 “The borrower under this scheme will be required to deposit a margin of 30 per cent upfront with the bank and the maximum repayment period for this scheme is 36 months including an initial moratorium of 2 months.
 The repayment under this scheme is to be made in equal monthly installments.

Lastupdate on : Sun, 4 Oct 2009 21:30:00 Makkah time
Lastupdate on : Sun, 4 Oct 2009 18:30:00 GMT
Lastupdate on : Mon, 5 Oct 2009 00:00:00 IST