J&K Bank Launches Affordable Homestay Loans and SVAMITVA-Based Lending to Boost Rural Economy
Jammu December 31, 2025:- Chief Secretary Atal Dulloo today chaired a high-level meeting to finalize a comprehensive framework for promoting homestays and facilitating institutional credit through SVAMITVA cards across Jammu and Kashmir.
The initiative is designed to empower rural property owners and strengthen community-based tourism by providing easier access to finance. To streamline this process, the Chief Secretary directed the Labour & Employment Department to collaborate with BISAG-N to develop an end-to-end digital solution.
This platform will allow SVAMITVA property cards to serve as a seamless basis for availing bank loans through a simplified, time-bound digital process.Supporting this mission, J&K Bank has rolled out a specialized loan product specifically for registered homestay operators.
Managing Director Amitava Chatterjee informed the meeting that the bank is offering loans up to ₹30 lakh per unit (capped at ₹5 lakh per room for up to six rooms) at a highly competitive interest rate of 8.20 percent. Notably, loans up to ₹10 lakh are collateral-free, aiming to reduce the financial burden on small-scale entrepreneurs.
The scheme features a 60-month repayment period with an initial six-month moratorium, making it one of the most attractive financial products for the UT’s growing tourism sector.The bank has already demonstrated steady progress, having financed 81 homestays with a total credit of ₹5.50 crore. Currently, nearly 80 percent of registered homestays have been digitally onboarded, with the remainder being covered in mission mode.
Chief Secretary Dulloo emphasized that these initiatives must be scaled up, particularly in off-beat and rural destinations, to generate sustainable employment. By enabling the monetization of rural land through SVAMITVA cards and offering affordable homestay financing, the government aims to formally integrate the rural economy into the UT’s broader development landscape.