Srinagar: The Jammu and Kashmir and Ladakh Finance Corporation (JKLFC) has approved the settlement of six non-performing asset (NPA) loan accounts under its Settlement Scheme-2026, with an interest waiver of around ₹3.36 crore.
According to an official statement, the Settlement Committee, which met under the chairmanship of the Managing Director, considered seven NPA loan accounts and approved settlement proposals in six cases involving a total settlement amount of approximately ₹84.43 lakh.
The settlements are subject to the borrowers depositing the approved amounts within the stipulated period and fulfilling the provisions of the scheme.
The statement said the Settlement Scheme-2026, approved by the Board of Directors at its 247th meeting on December 31, 2025, and notified on February 12, 2026, will remain in force until September 30, 2026.
The one-time settlement (OTS) scheme has been introduced to facilitate recovery of long-pending NPAs by allowing eligible borrowers to clear outstanding loan liabilities on concessional terms, with the objective of improving recoveries and reducing the corporation’s NPA portfolio.
The Managing Director directed branch heads and district officers to expedite identification of eligible cases and ensure timely processing of settlement proposals.
The corporation appealed to eligible borrowers to avail themselves of the scheme before its expiry on September 30, 2026.