J&K Grameen Bank Loan Scheme for Development of Real Estate


To accord need based finance for development of Real Estate as detailed below:

  • i. For construction & purchase of Commercial Complexes, Banquet Halls/ Restaurants/Hotels along with Furniture / Fixtures/Furnishing/ Repair/ Renovation.
  • ii. For construction of complexes for Educational Institutions by Individuals, Institutions, Societies including for purchase of furniture, Fixture, Furnishing, library books and computers.


  • 1. Any Individual / Proprietorship firm/ Partnership firm / Company with financially sound means and adequate repayment capacity shall be eligible for loans under the scheme. The intending borrower/s must be having sufficient business experience/standing in the line. The intending borrower/s must possess sufficient assets to pay the Bank loan out of other sources in case of any unseen set back to the business for which the finance is made.
  • For purposes reported at Para 1 (II), the academic institution must be registered with higher education department/directorate of school education of the state/division with due affiliation with the concerned university/Board of the respective region. In case the institution is run by some trust/society, the same should be registered with the concerned authorities with defined bye-laws. The proposal must be submitted with definite plan and copy of resolution passed by the authorized members of the trust/society. The Bye-Laws must contain a clear cut clause regarding raising of loans by the trust/society through some authorized member and there must be defined provision for mortgaging of any or all property belonging to the trust/society to secure the loan. The proposal must be accompanied with proper resolution from the authorized body of the trust/society.
  • For concerns/ firms, the entity must be a profit-making unit for the last 3 years.
  • The applicant should not be defaulter to any Bank/ FI.
  • Property proposed to be purchased/ mortgaged should stand in the name of applicant/s. All the owner(s) of the property have to join in as co-applicant(s).
  • If the building is to be purchased, the residual life of building should be at least 10 years more than the loan tenure which will be obtained through the Valuation Report. Loan against Agricultural Property, Third Party property, Property on Rental is strictly prohibited.
  • In case of purchase of commercial property under construction, the date of commencement of construction of such property should not be more than 3 years old.
The building should not be declared dangerous and all necessary permissions/ registrations/ licenses/ NOCs/ statutory approvals required for establishment/ smooth operations of the unit must have been earmarked in favor of the unit.

Quantum of Loan:

Maximum of Rs.200.00 lakh (Working capital limits for meeting day-to-day expenses can be granted subject to the maximum of Rs.20.00 Lakh within overall loan ceiling of Rs.200.00 Lakh ).


40% margin stipulation shall apply.


  • i. Hypothecation of all movable assets.
  • ii. Mortgage of proposed Hotel/ Restaurant/ Banquet Hall/ Academic Complex/ Commercial Complex along with land underneath and appurtenant thereto as Primary Security.
  • iii. Third party guarantee of two persons of sound financial net means or personal guarantee of trustees/ members of society in case of trusts/ societies acceptable to the Bank good for the loan amount, as collateral security.

Processing Charges:

0.50% of the Loan Amount

* Conditions Apply