It is official: J&K Bank extends repayment deadline Under ‘Karz Se Mukti’ scheme

Ziraat Times News Desk

Srinagar: As previously reported by Ziraat Times through informal sources, J&K Bank has officially extended the repayment deadline under its Special One Time Settlement Scheme (JKB SOTS-2024), titled ‘Karz Se Mukti’, to 1st September 2025.

The extension comes amid strong demand from borrowers and business associations, who had sought more time to arrange payments in light of the prevailing economic challenges following the April Pahalgam incident and a general slowdown in business activity across the Valley.

The scheme is aimed at helping borrowers with Non-Performing Assets (NPAs) or Restructured Loan Accounts (RLAs) to settle their long-standing dues with a concession, thereby avoiding prolonged litigation and enabling financial recovery.

Earlier, the deadline for repayments was June 30, 2025, which many borrowers found difficult to meet despite registering for the scheme by the cut-off date of March 31, 2025. The extension till September provides these borrowers a two-month grace period to clear dues under the favourable terms of the scheme.

The bank has advised all eligible customers to contact their respective branches immediately for details and to avoid last-minute hassles. The bank has also made a dedicated helpline (1800 890 2122) available for assistance.

This move is expected to benefit thousands of small business owners, traders, and self-employed individuals struggling with debt, and is seen as a step towards financial inclusion and economic recovery in the region.