Financing acquisition of passenger buses required by private educational institutions for providing to and fro transport facility to the students on roll from their residence to the Educational Institution. The facility shall be restricted to purchase of buses of standard make and which are built strictly as per the specification laid down for the purpose by Honorable High Court of Jammu and Kashmir.

  • Private schools in the state of Jammu and Kashmir recognized by Director of School Education (as required for schools running classes up to 8th standard) with formal approval of the recognition by School Education Department, Government of Jammu and Kashmir or by J&K State Board of School Education (applicable in case of schools running classes from 9th standard to 12th standard) with formal approval of School education Department, Government of Jammu and Kashmir. The certificate of recognition by the Education Department, Government of Jammu and Kashmir must be in force as on date of application. In case of schools affiliated to CBSE or other State Boards, the certificate of affiliation and NOC by the Education department, Government of Jammu and Kashmir must be in force as on date of application.
  • The applicant school must be of sound financial position and have satisfactory repayment record in respect of credit facilities availed, if any, from any bank.

10% of the cost of chasis plus fabrication and actual registration and insurance charges

Loan shall be restricted to maximum of 13.95 lacs (being 90% cost of chasis plus fabrication) per bus.

The principal together with monthly interest shall be repaid within a maximum period of 10 years in equated monthly installments.

The hypothecated vehicle/s to be comprehensively insured against all risks, at the cost of the borrower, with usual bank clause and policy drawn in the joint name of the bank and the borrower.

No. of buses Primary Collateral
Upto 3 buses Hypothecation of vehicle financed Personal guarantee of trustees/promoters
of the educational institution.
More than 3 buses hypothecation of vehicles financed Mortgage of immovable property of value Equal to at least 50% of the loan amount

The principal together with monthly interest shall be repaid within a maximum period of 10 years in equated monthly installments.

Bank's charge on the hypothecated vehicle/s to be got registered in the records of concerned RTO. Copy of the ownership certificate, duly attested by Manager Advances of the branch, evidencing among other things the fact of hypothecation of the vehicle in favour of the Bank to be obtained and kept on record.