Jammu and Kahsmir Bank has come up with a special product to cater to the development of small businesses. Small businesses have been severely hit by the three months of civil unrest.
The scheme called J&K Bank's Saral Finance Scheme was launched by chairman of the apex management committee of the bank, Sudhanshu Pandey.
A spokesperson of the bank said that the scheme is designed so as to provide simple and hassle free loan facilities to small businessmen, traders and vendors in the state.
He said that small businesses have an important role to play in the development of people all over as they aid to high employment generation, effective utilization of the available resources and low capital requirement.
"Once given an opportunity, not only did micro-finance clients expand business and increase their income, the high repayment rates demonstrate that given a chance, the poor are capable of transforming their lives," he said.
As per the scheme, Rs 2 lakh maximum would be provided to the borrower, with a repayment period of 5 years, the spokesperson said.
The interest rate on these loans will be as low as 11.25%.