SOLAR FINANCE
I am interested to install solar lighting system in my home. I have been told that bank loan is available for purchasing of the said system. Is it true?
Sheikh Abdul Majid, Tarzu, Sopore

 Some two years back, J&K Bank introduced special loan schemes to finance solar systems – be it lighting or water heating system. The Bank launched a scheme for financing solar energy home lighting systems in co-ordination with Tata BP Solar. Under the scheme, loan facility is extended for purchase and installation of Solar Home Lighting System of Tata BP Solar India Limited. The bank will extend 85% of the cost of the system as loan and the customer has to bear margin of 15%. However, the maximum loan amount under the scheme shall not exceed Rs.13,000. The loan is to be repaid within five years in easy monthly installments.
 Meanwhile, the bank has also a tie-up with Indian Renewable Energy Development Agency Limited (IREDA)-Government of India Enterprise, and is actively participating in the implementation of the scheme on “Accelerated Development & Deployment of Solar Water Heating Systems in Domestic, Industrial and Commercial Sectors” in J&K State. The main objective of the scheme is to promote the widespread use of solar water heaters through a combination of financial and promotional incentives in the state. The bank provides loan for purchase of solar water heaters. The quantum of loan is linked to the net monthly/salary income of the borrower - 20 times net monthly salary/income of the borrower. Generally, the quantum of loan is 85 per cent of the total cost of the solar water heating system.
 The schemes are available at all branches of the bank. So you must contact your branch where you maintain your account and avail the facility.

SECOND HAND CAR LOAN
I am a business man and want to purchase a second hand maruti van. Is there any loan scheme so that I am able to purchase the van?
Nizam-ud-Din, Botpora, Srinagar

 Almost all banks operating here have a loan scheme in place for purchase of used cars – more commonly referred as second hand cars. J&K Bank also offers such scheme and finances second hand car of any make or model which is not more than 5 years old.
 Since you are a businessman, it is mandatory for you to have at least 3 years standing in the business.
 You have to deposit margin of 25% of the cost of the van if it is having age less than 3 years. If the van is older than 3 years, then you have to pay margin of 30%. For example, if the cost of van which you intend to purchase is Rs.1.00 lac, you have to deposit Rs.25,000 if the age of the vehicle is less than 3 years and Rs.30,000 if it is 3 years above older.
 It’s pertinent to mention that the loan amount is linked to the net income of the applicant and the maximum limit is 2.5 times the net annual income of the applicant. However the ticket size of the loan is Rs.15 lacs. For example, if you have a net annual income of Rs.1. 00 lac, you are eligible for a loan amount of Rs.2.50 lacs.
 Repayment period is flexible. Loans granted to vehicles of less than 3 years age are repayable in 72 installments and for the vehicles above 3 years age repayment period is within 48 months.
 The facility is hassle free as afar security aspect is concerned. No third party guarantee is required in respect of employees drawing salary through J&K Bank branches. You have to submit third Party guarantee of two persons to the bank. Besides, the vehicle purchased will remain hypothecated to the bank.
 Notably, the valuation of the van  is to be ascertained on the basis of present market value of the new van of same variety and configuration less the depreciation. The depreciation will differ according to the age of the van. Higher the age, more will be the depreciation – which ranges from 5% to 50%

(The views are of the author & not the institution he works for)
Readers can send their queries to sajjadbazaz@gmail.com,  sajjadbazaz@greaterkashmir.com)

Lastupdate on : Wed, 24 Nov 2010 21:30:00 Makkah time
Lastupdate on : Wed, 24 Nov 2010 18:30:00 GMT
Lastupdate on : Thu, 25 Nov 2010 00:00:00 IST