Interest on loans slashed by 5% to help flood victims

Extending major relief to September 2014 flood hit traders and business units, the Jammu Kashmir government on Wednesday decided to subsidize interest on their loan by 5 per cent with effect from April 1 this year. The interest subsidy will be subject to a maximum of Rs 5 lakh per unit and it will be available for a period of four years upto December 31, 2020, an official release said, adding that the cabinet also sanctioned the second tranche of assistance proposed to be given to small traders and business establishments who have been given start up incentive with turn over upto Rs 10 lakh.
This interest subvention assistance also extends to such affected business units having existing linkage with banks but may have neither availed the special rehabilitation package as approved by State Level Banking Conference (SLBC) in its meeting held on September 23, 2014, nor figure in the list of units identified by the Divisional Commissioners concerned.
To ensure proper implementation of the interest subvention assistance scheme, cabinet ordered constitution of a high level coordination committee headed by Chief Secretary and comprising representatives of Relief and Rehabilitation Department, Finance. Planning and Development, Industries and Commerce, J&K Bank and any other appropriate agency.
The committee shall meet on monthly basis and ensure that only genuine traders/self employed business units have been covered by the banks under the scheme, ensure proper end utilization of the released assistance, consider mid course corrections/changes in the modalities of implementation based on feedback from relevant stakeholders and take proper action to redress grievances of traders/business units.

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