In a major push towards strengthening tourism-led livelihoods and expanding access to institutional credit in rural areas, Chief Secretary, Atal Dulloo today favoured the creation of a comprehensive framework aimed at promoting homestays and facilitating loans against SVAMITVA cards across the Union Territory.

The meeting, besides the Principal Secretary, Finance and Managing Director, J&K Bank, was attended by Secretary, Labour & Employment, Director, Employment, Managing Director, JKTDC and other concerned officers.

While reviewing the initiatives in detail, the Chief Secretary impressed upon J&K Bank to actively support community-based tourism, enhance ease of credit for homestay operators and unlock the economic potential of rural property owners through SVAMITVA-enabled lending. He underscored the need for dedicated systems to give the required impetus to these initiatives across the UT.

The Chief Secretary also urged the Labour & Employment Department to seek technical assistance from BISAG-N for developing an end-to-end digital solution that would make SVAMITVA cards a ready and seamless platform for availing bank finance through a simplified and time-bound process.

Briefing the meeting, Managing Director, J&K Bank, Amitava Chatterjee, informed that the Bank, as recommended earlier, has rolled out a dedicated loan product for homestays registered with the Tourism Department, offering affordable finance with simplified procedures and minimal collateral requirements. He elaborated that financial assistance is available for up to six rooms per homestay, with a maximum loan of ₹5 lakh per room and an overall ceiling of ₹30 lakh per unit.

He further stated that the interest rate is linked to the RLLR, currently at 8.20 percent, with a repayment period of 60 months and a moratorium of up to six months. Loans up to ₹10 lakh are collateral-free and supported by simplified documentation to facilitate easy access to credit.

The MD apprised the Chief Secretary that 81 homestays have already been financed, with a total outstanding credit of ₹5.50 crore, indicating steady traction under the scheme. He added that nearly 80 percent of registered homestays have been digitally onboarded on banking platforms, while the remaining units are being covered in mission mode to achieve complete digital inclusion.

It was further informed that the homestay loan product has recently been revised to make it more attractive and customer-friendly, thereby facilitating higher credit off-take. Bank branches, particularly those located in and around prominent tourist destinations, have been directed to proactively reach out to homestay operators for credit linkage. To enhance uptake, lists of registered homestays have also been shared with zonal and cluster offices to strengthen customer engagement, while digital platforms are being leveraged to ensure hassle-free lending with minimal turnaround time.

The Chief Secretary was also briefed on J&K Bank’s initiatives to promote credit access through SVAMITVA cards, aimed at monetising rural properties by enabling their use as formal financial assets and strengthening the rural credit ecosystem.

Chief Secretary Atal Dulloo appreciated J&K Bank’s proactive alignment with the government’s priorities of tourism promotion, rural empowerment and economic formalisation. He emphasised the need for intensified outreach, faster onboarding of eligible beneficiaries and close coordination among the Bank, Tourism Department and district administrations to ensure that the benefits of homestay financing and SVAMITVA-based lending reach the grassroots level.

He directed that these initiatives be scaled up in mission mode, particularly in rural and off-beat destinations, to generate sustainable employment and strengthen the tourism ecosystem more effectively across all districts of Jammu and Kashmir.