"Bank has launched the product to pump more credit and confidence into the trading economy – Sudhanshu Pandey"
In order to give a financial boost to the small businesses that form the bulk of state's trade economy, J&K Bank today launched a specially designed product under the title of "JK Bank Saral Finance Scheme to Small Businessmen".
Sudhanshu Pandey (IAS), Chairman of the Apex Management Committees of the Bank, unveiled the scheme at the Bank's corporate office. Top bank officials including two Executive Directors, A. K. Mehta and Abdul Majid Mir, Senior President, Ajit Singh, President Tafazal Hussain and President and Secretary Parvez Ahmad were present on the occasion. Besides, vice president of the bank, Khursheed A Pandit was also present on the occasion.
The scheme has been tailored as an innovative product for simple and hassle free credit dispensation to small businessmen/traders/vendors in the state.
Speaking on the occasion, Mr. Pandey said, "Small businesses that include the general merchandise in sub-urban/rural areas play a very important role in the socio-economic development of people everywhere due to their inherent advantages like low capital requirement, high employment generation, consumption/utilization of locally available produce etc."
"We have already started offering tailor-made financial products in the areas that were previously known as `un-bankable' because of lack of collateral. Once given the opportunity, not only did micro-finance clients expand business and increase their income, the high repayment rates demonstrate that given a chance the poor are capable of transforming their lives.," said Pandey while explaining the need to introduce this product.
He further stated that the Bank shall not only start deploying more money in the credit-starved sectors in the state, we shall be carving out more and more schemes to act as an effective tool for sustainable income growth and employment generation among the low-income groups.
Meanwhile, under the scheme, a maximum amount of Rs 2.00 Lac shall be provided to the borrower which is to be repaid in 5 years. The loan bears a low interest rate of 11.25% which is low when compared to the current market conditions. It is worth mentioning that the loan shall be sanctioned in the shape of Working Capital Term Loan rather than Cash Credit/SOD limits. The borrower does not need to submit any financial statements (like Balance Sheet & P/L statement) or stock statement on monthly basis.
Notably, J&K Bank has laid out an ambitious plan to set off a self-sustaining economic enterprise in the J&K State by offering extensive microfinance to small entrepreneurs and focusing on demand-driven credit, building capacity for savings and insurance through small loans and financial services.