Revival of economy UT Government’s priority: Lt Governor

Jammu: In order to provide adequate financial support to different business communities to overcome business challenges due to the prevailing conditions, J&K Bank today launched two products titled ‘J&K Bank Business Support Loan Scheme 2019-20’ and ‘J&K Bank Business Support Loan Scheme 2019-20 for Hotels and Guest Houses’.
Lieutenant Governor, Girish Chandra Murmu unveiled the two schemes at the Raj Bhavan in the presence of Sh. BVR Subrahmanyam, Chief Secretary; Sh. Arun Kumar Mehta, Financial Commissioner, Finance Department; Sh. R K Chhibber, Chairman & Managing Director, J&K Bank; Sh. Bipul Pathak, Principal Secretary to Lieutenant Governor; Sh. Sunil Gupta and Sh. Arun Gupta-Executive Presidents, J&K Bank and other senior officers from the Government and the Bank.
Speaking on the occasion, the Lt Governor observed that the UT Government’s priority remains on the revival of economy post COVID-19 while its focus continues on the overall development of the region.
The Lt Governor said the bank’s schemes are a timely financial intervention for businesses of the region especially hotels and guest-houses which are crucial for the sustenance and development of tourism sector and calling for collaborated efforts by all stakeholders in this direction.
Observing that J&K has a vast potential to be a major tourism destination which includes religious tourism as well, the Lt Governor added that the Government was making resolute efforts to tap the immense potential in this sector.
Sh. R K Chhibber, CMD, J&K Bank, while thanking the Lt Governor for his support and foresight, said “the purpose of tailoring J&K Bank Business Support Loan Scheme 2019-20 for businesses is to provide them much needed financial cushion so that they are able to meet the temporary mismatch in their cash flows caused by the business challenges during 2019 followed by COVID-19 pandemic, whereas in case of ‘J&K Bank Business Support Loan Scheme 2019-20 for Hotels and Guest Houses’, the aim is to support these units financially for meeting their expenditure towards salaries to staff and other recurring fixed costs.”
It was informed that the credit scheme titled “J&K Bank Business Support Loan 2019-20” has been engineered keeping SMA1 & SMA2 borrowers into consideration. The highlights include 10% enhancement in existing working capital limit in the form of a 3 year working capital term loan (which includes one year moratorium on principal), subject to an upper limit of Rs 5 cr for SMA2 and Rs 20 cr for other standard loans.
It was further informed that the other scheme, which has been designed keeping in consideration a sizeable portion of regional economy associated with the tourism sector, has been titled as “J&K Bank Business Support Loan 2019-20 for Hotels & Guest Houses”. All existing customers under this segment i.e. Government recognized/registered hotels and guest houses are eligible under this scheme including the SMA1 and SMA2 borrowers. The quantum of finance under this scheme has been linked with recurring fixed expenses for preceding 9 months of the COVID-19 pandemic with an upper cap of Rs. 2.00 cr. The scheme will also have an initial moratorium of 12 months on principal with a maximum allowed repayment period of 36 months.
In order to provide a much needed breather to the already stressed businesses, the bank has decided to waive of processing charges, foreclosure charges & margin requirement under both the schemes. Moreover, the finance under these schemes shall be available at a very competitive interest rate of only 8.80% per annum which has been linked with 3 year MCLR with a markup of only 50 bps. Both the schemes are valid up to October 31, 2020 and loans will be sanctioned and disbursed within the stipulated time frame.