J&K Bank extends loan repayment deadline; KCCI thanks J&K government 

Srinagar — In a move aimed at easing the financial burden on distressed borrowers, Jammu &  Kashmir Bank has extended the repayment deadline under its Special One-Time Settlement Scheme – Karz Se Mukti by two months, pushing the final payment date to September 1, 2025. The extension comes as a direct response to a formal request made by the Kashmir Chamber of Commerce and Industry (KCCI), which has welcomed the decision as a much-needed reprieve for the business community.

The scheme, designed to help borrowers clear long-pending dues under a structured settlement plan, had originally set June 30, 2025, as the deadline. However, according to KCCI, many borrowers who had availed the scheme before the March 31 enrollment cut-off were struggling to meet the payment deadline due to worsening economic conditions — particularly after the tragic Pahalgam incident on April 22, which significantly impacted Kashmir’s tourism and business sectors.

In a statement issued Monday to Ziraat Times, KCCI expressed its gratitude to Lieutenant Governor Manoj Sinha, Chief Minister Omar Abdullah, Chief Secretary Atal Dulloo, and J&K Bank MD & CEO Amitava Chatterjee for their “timely intervention” in facilitating the extension. The Chamber noted that the relief would help businesses stabilize and avoid further financial deterioration.

“The extension will go a long way in allowing these enterprises to fulfill their obligations and avoid slipping into deeper financial hardship,” KCCI said in the statement.

The Chamber also reiterated its earlier discussions with J&K Bank on launching a new One-Time Settlement scheme with a higher ceiling, in line with updated MSME guidelines, to benefit a broader set of borrowers. “Such an initiative is eagerly awaited by a large segment of borrowers who could not benefit from the existing framework,” the Chamber added, urging the bank to roll out the proposed scheme at the earliest.

J&K Bank’s Karz Se Mukti scheme has been instrumental in supporting small and medium-sized enterprises (SMEs) grappling with long-term loan liabilities, particularly in sectors hit hard by repeated disruptions over recent years. The scheme’s extension signals the bank’s willingness to remain flexible in the face of continuing economic volatility.

KCCI concluded by emphasizing the need for sustained collaboration between the bank and the business community to build financial resilience and facilitate a faster economic revival in the Union Territory.

“The responsiveness and sensitivity of J&K Bank during these challenging times sends a strong message of support and solidarity to the Valley’s business community,” the Chamber said.