CM Business Loan Interest Relief Scheme Jammu & Kashmir 2018 (Subsidy Scheme)
The Jammu and Kashmir state Finance Minister- Dr. Drabu, also a renowned Economist, has announced the introduction of the new scheme termed as Chief Ministers Business Interest Relief Loan Scheme for the year 2018. The scheme is mainly focused on young and experienced entrepreneurs (Business) of the state. The scheme offers with relief to the business men who have borrowed a loan amount from the financial institutes and banking organizations in the state.
The new scheme for implementation was announced during the state Budget meeting 2018-19 by the Finance Minister Dr. Drabu. The Government has also announced the implementation of the new scheme for next fiscal year.
- Aim – With the implementation of the new initiative the government aims at offering all possible assistance to the business sector. This major step will also prove helpful in promoting and encouraging more business sectors and banks to flourish within the Jammu and Kashmir state.
- Relief for people – The new scheme will offer people with relief as they have to pay less interest rate as compared to previous interest rate. The interest rate will be subsidized by the state government while only 2/3rd will be paid by the applicant.
- Relief for banks – all banks that hold non-performing assets are expected to benefit under this scheme as they will be offered with some discount on the interest rate by the state government.
- Implementation time – The government has already made it clear that it shall be implementing the new scheme for next two fiscal years. So within the time duration till 2020 the banks are expected to make complete repayment of the loan amounts along with interest amounts for borrowers.
- The state government has announced a set budget of Rs 80313 crore that will be implemented within Fiscal year 2018-19. The state government has also made it very clear that in the present budget the government will offer with more financial assistance to be implemented in the Capital expenditure.
- According to the budget distribution the state government will implement Rs 51185 crore for the investment in Revenue expenditure while an amount of Rs 29128 crore will be made by the government as Capital expenditure.
- The state government has also announced that it shall be offering with DA equivalent to 1 percent to the employees section that will be given to them for the work output.
- According to the government the new DA will be in effective for the employees from 2018 April 1st.
The state government with the new initiative has made it clear that it aims at spending more money for development sector for the state for both urban and rural governments.