On June 25, 2020, Girish Chandra Murmu, the lieutenant governor of the Union Territory (UT) of Jammu and Kashmir (J&K), has rolled out 2 customized loan schemes of J&K Bank namely ‘J&K Bank Business Support Loan Scheme 2019-20’ and ‘J&K Bank Business Support Loan Scheme 2019-20 for Hotels and Guest Houses’ with the aim to overcome business challenges that have stemmed up due to the prevailing conditions.
J&K Bank Business Support Loan Scheme 2019-20:
Valid up to October 31, 2020, this loan scheme offers 10% enhancement in existing working capital limit in the form of a 3 year working capital term loan (including one year moratorium on principal) with a maximum limit of Rs 5 cr for SMA2 (special mention accounts 2) borrowers and Rs 20 cr for other standard loans including SMA1 (special mention accounts 1).
J&K Bank Business Support Loan Scheme 2019-20 for Hotels and Guest Houses:
- Valid up to October 31, 2020, this loan scheme has been disbursed with an interest rate of just 8.80% per annum which has been linked with 3 year MCLR (Marginal Cost of Funds based Lending Rate- means an internal reference rate for banks fixed by the Reserve Bank of India (RBI) with a markup of only 50 bps (basis points).
- The quantum of finance of this scheme has been linked with recurring fixed expenses for preceding 9 months of the coronavirus (COVID-19) pandemic with an upper cap of Rs. 2.00 cr (including one year initial moratorium on principal) with a maximum allowed repayment period of 36 months.
- All J&K bank customers i.e. Government recognized/registered hotels and guest houses are eligible under this scheme including the SMA1 and SMA2 borrowers.
Static points:
The SMA-1 refers to those accounts where the principal or interest payment remains overdue between 31-60 days, while SMA-2 pertains to those where the overdue period is between 61-90 days.
About Jammu & Kashmir Bank:
Headquarters– Srinagar, Jammu and Kashmir
Chairman and Managing Director (CMD)- R K Chhibber
