BK News
Srinagar, Dec 10: In order to provide finance to hotels and guesthouses facing a difficult situation due to COVID19, J&K Bank on Thursday launched a special scheme for the hospitality sector of Jammu and Kashmir.
The ‘Business Support Loan Scheme 2019-20 for Hotels and Guesthouses’ was unveiled through the virtual mode from Jammu by Financial Commissioner, Finance Department, AK Mehta in presence of J&K Bank chairman RK Chhibber and chairman J&K Hoteliers Club Mushtaq Ahmad Chaya, a spokesperson of the bank said.
The scheme has been tailored after incorporating the inputs from the hoteliers and related businessmen to provide requisite finances to the hotels and guesthouses for meeting their infra-structural and daily running costs, said the spokesperson.
The scheme will remain valid till February 28, 2021. The finance will range from Rs 32.40 lakh for a 12-room hotel or guesthouse to Rs 4.95 crore for 60-room or above.
“Having an attractive interest rate, the repayment period for the scheme is 48 months after initial moratorium period of 12 months from the date of the first disbursement of the loan,” the spokesperson said, adding the moratorium will apply to principal amount only.
All the hotels and guesthouses registered and recognised by the J&K Government availing loan facilities from the bank and continue to be classified as standard as on date of disbursement of the facility are eligible under the scheme besides those account holders who are not availing any loan facilities from any bank or financial institution.
“J&K Bank has been playing a very pro-active role in reviving various sectors of the UT economy. Soon after the initial pandemic-related restrictions were eased, we engaged with all the stakeholders in the local economy while devising our plans for effective financial intervention. The scheme to support the business of hotels and guesthouses is one of the outcomes of those engagements.”
CMD Chhibber said during the launch ceremony
“It is also in line with UT Government’s vision to achieve the tag of India’s most preferred tourist destination by providing the world-class tourism infrastructure and enhanced hospitality facilities across the region. Both Lt Governor Manoj Sinha and Financial Commissioner AK Mehta have been closely following J&K Bank’s plan to support the tourism sector. I am happy we have come up with a scheme that will provide relief and liquidity to the hospitality sector,” he added
Executive presidents of the bank Arun Gandotra, GN Teli and Sunil Gupta; presidents Rajni Saraf, Ashraf Ali and Chetan Paljor, Special Secretary to CMD Karanjit Singh, vice presidents, office bearers of hoteliers’ associations and other officers of the bank were also present on the occasion.
The hoteliers were represented by Chairman TCI Shafi Ahmad Tramboo, Chairman Hattrick Group Showket Ahmad Choudhary, Chairman Gulmarg Hoteliers Club Mukhtar Shah and General Secretary Gulmarg Hoteliers Club Akib Chaya.
