Financial Commissioner launches J&K Bank's scheme for hospitality sector

According to a statement, the scheme was unveiled through virtual mode from Jammu by Financial Commissioner, Finance Department, J&K UT government Dr A K Mehta in presence of Chairman & MD R K Chhibber and Chairman J&K Hoteliers Club Mushtaq Chaya.

Speaking on the occasion, CMD R K Chhibber said, “Progress of the J&K Bank is linked to the progress of the business community. J&K Bank has been playing very pro-active role in reviving different sectors of J&K economy especially during the ongoing pandemic. Soon after the initial pandemic-related restrictions were eased, we engaged with all the stakeholders in local economy while devising our plans for effective financial intervention."

The scheme to support the business of hotels and guest houses is one of the outcomes of those engagements.

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 infra-structure and enhanced hospitality facilities across the region.

Both Lt Governor Manoj Sinha and Financial Commissioner Dr. A K 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”, the CMD said.

“The inclusion of the accounts that were affected by 2014-floods and 2016 disruptions and the 5% interest subvention to the borrowers affected by the COVID in the Revival Package for the business community of the UT of J&K announced by J&K UT government-led by the hon’ble Lt Governor Manoj Sinha – has significantly helped the business community and has brought in a much needed relief to the business community,” he added.

Executive President Arun Gandotra while presenting various features of the scheme said, “We know the cash flow of the hotel sector has been severely affected by the Covid 19 Pandemic. Keeping in view the challenges faced by the industry, we devised this scheme accordingly and only after incorporating the inputs from the industry players so that J&K bank could contribute its bit to get the industry back on its feet."

"We will be funding the hoteliers so that they are able to meet their expenditure towards salaries to staff and other fixed costs”, he added.

The hoteliers’ team led by Chaya hailed the J&K Bank management-led by the CMD R K Chhibber for the hospitality sector-friendly scheme.

“The scheme is historic in more than one ways. It is surely going to lift the spirit and business of the hotel industry up. We are thankful and grateful to Chhibber Sahab for ensuring that the scheme was pro-hoteliers and a game changing one for the industry.We have lot of expectations from J&K Bank, and the premier institution of the UT has never disappointed us. They have always supported us through thick and thin, and, businessmen have alwaysprospered from their relationship with the bank,” Chaya said.

Notably, the Scheme shall remain valid till February 28, 2021 with the quantum of finance ranging from Rs 32.40 lakh for twelve-room hotel/guest house to Rs 495 lakh for sixty and above rooms depending upon the category of the hotel/ guest house.

Having an attractive interest rate, the repayment period for the scheme is 48 months after initial moratorium period of 12 months (in respect of principal amount only) from the date of first disbursement of the loan.

All the hotels and guest houses registered and recognized by the government, availing loan facilities from the bank (standard as on February 29, 2020 (which includes SMA-0, SMA-1 & SMA-2), & continue to be classified as standard as on date of disbursement of facility are eligible under the scheme, besides those accounts holders who are not availing any loan facilities from any bank/financial Institution, which makes it unique across the industry.