J&K's entrepreneurial ecosystem gets Rs 2324 Cr booster shot from banks in 2023-24

Srinagar, June 2: In a major push towards promoting self-employment and startups in Jammu and Kashmir, banks operating in the Union Territory have disbursed a staggering Rs 2324 crore in loans to 50,418 beneficiaries under various employment generation schemes during the financial year 2023-24.

This significant development was revealed by a senior government official, who stated that banks in J&K have cumulatively disbursed Rs 66,052 crore to 18.15 lakh beneficiaries, registering an impressive achievement of 128% in financial terms and 110% in physical terms of the Annual Credit Plan for 2023-24.

The official further informed that banks have sanctioned loans amounting to Rs 2234 crore to 50,418 beneficiaries under major employment generation schemes during the period under review.

This concerted effort by the banking sector comes in the wake of directives issued by the Finance Ministry in February, instructing banks in Jammu and Kashmir to increase credit lending under employment generation schemes to boost job creation in the Union Territory.

The ministry's directive was prompted by concerns over the high 22% rejection rate for loan applications under government-sponsored schemes intended to promote livelihoods and entrepreneurship.

The employment generation schemes under which the loans have been disbursed include the Prime Minister's Employment Generation Programme (PMEGP), National Rural Livelihood Mission (NRLM), National Urban Livelihood Mission (NULM), Pradhan Mantri Mudra Yojana (PMWMY), Comprehensive Credit Scheme for Artisans & Weavers, and J&K Rural Employment Generation Programme (JKREGP).

The disbursement of these loans is expected to provide a significant boost to self-employment and entrepreneurship in the region, enabling individuals to establish their businesses and contribute to the overall economic growth of Jammu and Kashmir.

Officials have hailed this initiative as a crucial step towards empowering the youth and promoting sustainable livelihoods in the Union Territory.