J&K Bank reaffirms support to borrowers under Rehabilitation Package 2025

Excelsior Correspondent
KATRA, Oct 22: In a significant move to provide financial relief to businesses affected by recent disturbances, J&K Bank has reaffirmed its commitment to support borrowers under the Rehabilitation Package 2025. The assurance came during a meeting between officials of the bank and representatives of the Chamber of Tourism Trade & Industry Katra (CTTIK), held at the bank’s Main Bazaar branch in Katra.
The meeting was attended by Raj Kumar Padha, President, CTTIK, along with members Raj Kumar Dubey and Munish Kapoor. The bank was represented by Lalit Parkash, Zonal Manager; Amit Balgotra, Cluster Manager; and Sakshi Sharma, Manager Advances.
Welcoming the bank officials, Padha appreciated the initiative, describing the Rehabilitation Package as a timely measure to assist borrowers impacted by the recent Pahalgam attack, Operation Sindoor and adverse weather conditions including heavy rains, landslides, and tragic incidents at Shri Mata Vaishno Devi Ji and Machail Temple.
Under the Rehabilitation Package 2025, the repayment period for existing term loans of eligible borrowers will be extended by one year, allowing businesses additional time to stabilize operations and manage cash flow. The accrued interest on existing term loans and working capital accounts up to the eligible date will be converted into a Funded Interest Term Loan (FITL), repayable over an extended period. Furthermore, the bank will provide an additional 15% credit facility on existing working capital limits to help units meet short-term operational and liquidity requirements.
The CTTIK delegation urged the bank to consider extending the benefits to accounts with more than two overdue installments beyond April 21, 2025, to ensure broader coverage. They also requested a similar 15% credit enhancement on term loans and sought short-term loans at reduced interest rates for new borrowers to help revive tourism and allied businesses.
Responding to the concerns, Zonal Manager Lalit Parkash assured the delegation that the bank would examine all suggestions sympathetically and work towards feasible solutions. He reaffirmed J&K Bank’s commitment to supporting the business community through flexible and inclusive financial initiatives.
The meeting concluded with mutual appreciation and an agreement to maintain close coordination to ensure the effective implementation of the Rehabilitation Package 2025 for the benefit of tourism, trade, and transport stakeholders across the region.

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