JK Bank Karz Se Mukti Scheme Online Apply, Form PDF, Registration, Latest News, Check Eligibility & Benefits 2025

JK Bank Karz Se Mukti Scheme:- Jammu and Kashmir Bank (J&K Bank) has launched a new initiative aimed at reducing Non-Performing Assets (NPAs) and assisting borrowers who are facing genuine financial difficulties. The scheme, named J&K Bank Special One-Time Settlement Scheme (OTS) for NPAs/RLA (Relief Loans Accounts), was unveiled today by the bank’s Managing Director and CEO, Amitav Chatterjee, during a special ceremony held at the bank’s corporate headquarters. The event was also attended by Executive Director Sudhir Gupta, Senior General Managers, and other senior officials.

In a significant move to provide relief to struggling borrowers and tackle the issue of mounting NPAs, the scheme targets NPA accounts classified as Suspected-I, Suspected-II, Suspected-III, and Loss/RLA (Recovery Loss Account) with outstanding dues of up to ₹5 crore, as of September 30, 2024. The program is specifically designed to offer relief to borrowers whose accounts have been declared as NPA and who are in dire need of assistance in settling their dues.

JK Bank Karz Se Mukti Scheme 2025

At the launch, J&K Bank’s MD and CEO, Amitav Chatterjee, expressed that the new scheme exemplifies the bank’s commitment to supporting borrowers who are facing genuine repayment difficulties. “The JK Bank Special OTS-2024 Scheme reflects our unwavering commitment to assist borrowers who are experiencing financial distress and to help them come out of the challenging situation. The scheme offers an attractive set of incentives and concessions that will give eligible borrowers a golden opportunity to resolve their dues,” said Chatterjee.

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The scheme has been crafted to facilitate borrowers who may be grappling with financial challenges and provide them with the flexibility to settle their debts in an easier manner. By offering attractive settlements, J&K Bank hopes to reduce the burden on borrowers while enhancing its overall asset quality.

JK Bank Karz Se Mukti Scheme Eligibility

The J&K Bank Karz Se Mukti Scheme, also known as the Special One-Time Settlement (OTS) Scheme for NPAs/RLA, is designed to help borrowers with outstanding loans that have been classified as Non-Performing Assets (NPAs). The eligibility criteria for this scheme are as follows:

Classification of Accounts:-

The scheme is applicable to borrowers whose accounts are classified as Suspected-I, Suspected-II, Suspected-III, or Loss/RLA (Recovery Loss Account) by the bank.

Outstanding Loan Amount:-

The outstanding NPA or Relief Loan Account (RLA) balance should not exceed ₹5 crore as of September 30, 2024. Only accounts falling within this limit are eligible for the scheme.

Borrowers Facing Financial Difficulties:-

The scheme is intended for borrowers who are facing genuine repayment challenges, including individuals, businesses, and entities struggling to meet their financial obligations.

Date of Classification:-

The scheme is targeted towards NPAs that were classified on or before September 30, 2024. Borrowers whose accounts are categorized as NPAs after this date will not be eligible for this particular scheme.

Geographical Eligibility:-

Although primarily aimed at borrowers within Jammu and Kashmir, it is open to individuals and businesses in other regions if they meet the classification and outstanding loan criteria.

Non-Discriminatory:-

The scheme is non-discriminatory, meaning all eligible borrowers with NPAs meeting the above conditions can apply, regardless of their past relationship with the bank.

Additional Considerations:-

One-Time Settlement: Borrowers who qualify under the scheme can clear their outstanding dues through a one-time settlement (OTS) plan, often at a reduced amount based on the terms of the scheme.
Incentives for Early Settlement: The scheme offers additional incentives for borrowers who settle their dues quickly. The faster the repayment, the better the terms.
This scheme aims to reduce the burden of NPAs on the bank, improve asset quality, and provide relief to borrowers who are genuinely struggling with their repayments. It also offers them an opportunity to resolve their debts and restart their financial journey.

JK Bank Karz Se Mukti Scheme Documents required?

To apply for the J&K Bank Karz Se Mukti Scheme (Special One-Time Settlement Scheme), borrowers need to provide certain documents to support their application and verify their eligibility. These documents may vary slightly depending on the type of borrower (individual, business, or entity), but generally, the following documents are required.

Documents Required for J&K Bank Karz Se Mukti Scheme

Loan Account Details

Loan account number(s) for which the borrower is seeking settlement.
Outstanding balance statement (showing NPAs and dues).
Loan classification details (e.g., Suspected-I, Suspected-II, Suspected-III, Loss/RLA).

Proof of Identity

Individuals: A government-issued identity proof, such as:
Aadhar card
Passport
Voter ID card
Driving License
For Businesses/Entities: Registration documents like GST registration, Partnership deed, Memorandum of Association (MoA), etc.

Proof of Address

Individuals: Utility bills (electricity, water, etc.), rent agreement, or bank statements with the borrower’s address.
For Businesses/Entities: Proof of business address (e.g., utility bills, rent agreement).

Income and Financial Documents

Individuals: Income tax returns for the last two years, salary slips, or other proof of income.
For Businesses/Entities: Audited financial statements for the last 2 years, income tax returns, balance sheets, profit & loss accounts, or cash flow statements.

NPA Classification Documents

A letter or document from the bank stating the classification of the account as Suspected-I, Suspected-II, Suspected-III, or Loss/RLA.
Bank statements showing the outstanding NPA balance as of September 30, 2024.

KYC Documents

For both individuals and businesses, KYC (Know Your Customer) documents must be provided, including photo IDs and address proof.

One-Time Settlement (OTS) Application Form

The borrower will need to fill out the prescribed application form for the One-Time Settlement (OTS) scheme provided by J&K Bank.

Supporting Documents for Financial Hardship (if applicable)

A statement or affidavit explaining the borrower’s financial difficulties or reasons for default (e.g., business losses, medical emergencies, etc.), especially for borrowers seeking a more lenient settlement.

Property Documents (if applicable)

If the loan is secured against property, the borrower might need to submit documents related to the property (e.g., title deed, property valuation, etc.) to help with the settlement process.

How to apply for JK Bank Karz Se Mukti Scheme?

Visit Nearest Branch: Go to your nearest J&K Bank branch where your loan account is held.
Obtain the Application Form: Get the One-Time Settlement (OTS) application form from the branch.
Fill the Application Form: Complete the form with your loan account details and personal information.
Submit Required Documents: Provide necessary documents like identity proof, loan account details, income statements, etc.
Bank Evaluation: The bank will evaluate your application and documents.
Approval Notification: You will be notified of the approval or rejection within 7 days.
For updates, you can visit the J&K Bank website or contact their customer care.