“J&K Bank to provide homestay loans up to ₹30 Lakh at 8.20% interest”
Jammu : In a major push towards strengthening tourism-led livelihoods and expanding access to institutional credit in rural areas, Chief Secretary, Atal Dulloo Wednesday favoured the creation of a comprehensive framework aimed at promoting homestays and facilitating loans against SVAMITVA cards across the Union Territory. The meeting, besides the Principal Secretary, Finance and Managing Director, J&K Bank, was attended by Secretary, Labour & Employment, Director, Employment, Managing Director, JKTDC and other concerned officers.
Reviewing the initiatives in detail, Chief Secretary of Jammu and Kashmir emphasized the importance of J&K Bank’s support for community-based tourism and the enhancement of credit access for homestay operators. He highlighted the potential economic benefits for rural property owners through SVAMITVA-enabled lending and called for dedicated systems to promote these initiatives across the Union Territory. In a meeting, the Managing Director of J&K Bank, Amitava Chatterjee, reported the launch of a specialized loan product for homestays registered with the Tourism Department. This product offers affordable financing with simplified procedures, allowing loans of up to ₹30 lakh per unit, with a maximum of ₹5 lakh per room for up to six rooms. The interest rate is linked to the RLLR at 8.20 percent, with a repayment period of 60 months and a moratorium of up to six months. Notably, loans up to ₹10 lakh are collateral-free, facilitating easier access to credit. Chatterjee noted that 81 homestays have been financed, totaling ₹5.50 crore in outstanding credit, indicating positive traction. Approximately 80 percent of registered homestays have been digitally onboarded, with efforts underway to achieve full digital inclusion. The homestay loan product has been revised to enhance its attractiveness, and bank branches in tourist areas have been instructed to engage proactively with homestay operators. The Chief Secretary acknowledged J&K Bank’s alignment with government priorities in tourism promotion and rural empowerment. He stressed the need for intensified outreach and faster onboarding of beneficiaries, urging close coordination among the Bank, the Tourism Department, and district administrations. He directed that these initiatives be scaled up in mission mode, particularly in rural and off-beat destinations, to foster sustainable employment and strengthen the tourism ecosystem throughout Jammu and Kashmir.
