Six NPA accounts settled, ₹3.36 cr interest waived
Srinagar :The Settlement Committee of the Jammu & Kashmir and Ladakh Finance Corporation (JKLFC) met under the chairmanship of its Managing Director to consider settlement of seven Non-Performing Asset (NPA) loan accounts under the Settlement Scheme–2026 (SS-2026).
The Committee approved settlement proposals in respect of six NPA loan accounts involving a total settlement amount of approximately ₹84.43 lakh, subject to the borrowers depositing the approved settlement amounts within the stipulated period and fulfilling all the provisions of the Scheme.
The Board of Directors, in its 247th meeting held on 31st December 2025, had approved introduction of the Settlement Scheme–2026 (SS-2026), which was subsequently notified by the Corporation vide Order No. 155 dated 12th February 2026. The scheme came into force with immediate effect and shall remain in operation up to 30th September 2026.
The Scheme has been introduced as a One-Time Settlement (OTS) mechanism to facilitate recovery of long-pending Non-Performing Assets by providing eligible borrowers an opportunity to liquidate their outstanding loan liabilities on concessional terms, thereby improving recoveries and reducing the Corporation’s NPA portfolio.
The Managing Director emphasized that the scheme is an important initiative to recover long-pending dues, facilitate closure of stressed loan accounts and safeguard the financial interests of the Corporation. He directed all the Branch Heads and District Officers to expedite identification of eligible cases and ensure prompt processing and submission of settlement proposals.
The Corporation reiterated its commitment to strengthen its recovery mechanism and improve the quality of its loan portfolio through effective implementation of the Settlement Scheme–2026.
The eligible borrowers are advised to avail the benefits of the Scheme before its expiry on 30th September 2026.
