Some retired government employees have expressed their desire to be entrepreneurs, but lack financial support to engage in entrepreneurship. Is there a loan program to finance their business ventures?

J&K Bank has taken the lead in the banking fraternity by introducing a funding program (“Start Again”) to finance start-ups of retired employees under the age of 65 in a Greenfield business in the manufacturing and services sector. In particular, support for retirees seeking financial assistance for their entrepreneurial project is part of the program. The bank will provide them with advice on setting up business ventures.

Some of the indicative businesses include media and entertainment, tourism, healthcare, IT and related services, food industry, arts and crafts, etc. fall under the regime.

Including agriculture-related projects such as fish farming (fishing), apiculture (apiculture), poultry, animal husbandry, dairy, agro-clinics and agro-industry centers, agro -aggregation industries, food processing and food processing, etc. are also eligible for funding.

The amount of the loan is related to the nature of the activity. It varies between Rs.2.00 Lakh to Rs. 20.00 Lakh. Loans are mainly secured by pledge/assignment/mortgage (registered or equitable) of all assets (fixed and current) financed by the bank. In terms of collateral, loans up to Rs.10.00 Lakh are covered under a credit guarantee scheme for which the fees are borne by the bank. Loans above Rs.10.00 Lakh are secured either by a credit guarantee scheme for which the fees are borne by the borrower; guaranteed by a third party of two persons or by hypothec of ownership, nominative or equitable.

The loan must be repaid within 7 years, including a two-year repayment holiday.