Finance Ministry, Jammu & Kashmir has launched CM’s Business Interest Relief Scheme for industries and businesses. Subsequently, J&K govt. will provide one-third (1/3) of the total interest payment pending for all the RBI approved restructured accounts. Accordingly, this scheme is launched for the upcoming 2 years i.e from January 2018 – January 2020. This scheme will facilitate “Ease of Doing business in J&K”.
Under this scheme, borrowers will have to pay two-third (2/3) amount of their monthly installment and state govt. will pay the rest amount. The state govt. announces this scheme in the financial budget of Jammu and Kashmir for the year 2018-19.
J&K govt. also ensures that it will not encourage the people to not pay their loans. While announcing the J&K Budget 2018-19, the state govt. has also announced the Assured Career Progression Scheme. This career progression scheme will provide benefits to all Gazetted Cadres of all engineering departments.
CM’s Business Interest Relief Scheme – Details
The important features and highlights of this scheme are as follows:-
- Under this scheme, the state govt. will pay one third while borrowers have to pay two-third of the monthly installment.
- J&K govt. will provide this amount from CM’s Relief Fund and PM Interest Subvention Scheme.
- This scheme is applicable for 2 calendar years i.e from Jan 2018 to Jan 2020.
- Accordingly, this scheme will benefit several industries, trade bodies and business fraternity and will also give them fiscal space.
- Moreover, various banks will also get benefited from this scheme as this scheme will help banks in their Non Performing Assets (NPA) build up.
- Banks can avail these benefits only after a percentage point reduction in the average interest rate on the restructured folder.
The state govt. has launched this scheme in order to provide huge support to the borrowers. In addition to this, this scheme will help in flourishing trade and business activities across the state. Furthermore, J&K govt. will not inadvertently encourages the culture of reneging on the loan commitments.