J&K Bank launches ‘Cash Credit Scheme’ for salaried employees
J&K Bank today launched 'Cash Credit Scheme' for the permanent employees of state and central government, semi-government undertakings and other autonomous bodies, who draw their salary from the bank.
The Bank's Chairman and CEO Parvez Ahmed unveiled "J&K Bank Cash Credit Scheme for salaried employees" in presence of Executive President SS Sehgal, Senior President SK Bhat and Vice-Presidents Arun Gandotra, Manzoor Hussain and Tabasum Nazir, a spokesperson of the bank said in a statement.
"The launch of this first-in-series tailor-made scheme is in line with our commitment to offer a bouquet of customised products and services to the people of our state. We at J&K Bank understand the huge potential of our economic resources and to explore this economic potential we shall be launching a series of hassle free tailor-made schemes and services in coming times," Parvez Ahmed said during the unveiling ceremony.
"Let me reiterate our commitment to offer most appropriate financial solutions to the people of the state to harness prosperity and profits for better future."
"The idea behind cash credit scheme is to increase the liquidity in the system by providing an active line-of-credit to more than 5 lakh permanent employees, which is not only huge but secure segment in the lending eco-system of the state. Under the current circumstances, we believe it can give the much needed impetus to the local economy and trigger a positive business cycle in the state," Ahmed said.
The product design has been aimed to provide hassle-free cash credit facility to the permanent employees drawing salary from J&K Bank. Without any margin money and collateral security, the rate of interest for the scheme will be 12.85 percent. The product has the maximum finance up to Rs 6 lakh and shall be in the nature of revolving facility with relaxed repayment options.
Under the scheme, the borrowers have the option of availing a part of credit facility through J&K Bank Credit Card. The limit of the card will be linked to the total cash credit eligibility of the borrower.
The sanction under the scheme will be one time for whole life. However, for accounts within J&K state, documents shall be executed after every six years and for accounts in the rest of India documents shall be executed after every three years.