The concept of weekly market has become a business worth of Rs 7 crore per month in valley. This happened after the initiative of micro financing taken by the J&K Bank. In return, the bank is receiving rich dividends from the people who had taken loans from the bank.
BD Market in Srinagar is a small but clear example of the success story of small micro finance concept in the state. The youth of the city, who were doing irregular works to earn money, are earning more money by selling goods in the Sunday market.
Bilal Ahmed, a Sunday market dealer said that the concept of micro financing has helped the poor people a lot. Earlier, the dealers used to get their goods on commission basis but now they earn good profit.
Earlier, the Jammu and Kashmir Bank had started the concept of micro financing as a pilot project in Srinagar.
It has started granting zero mortgage loans to youths that could be paid back in easy installments.
Now, the concept has been proved as great success. According to the CNN IBN report, as many as 250 men have taken the loan for establishing their own business.
300 more applications are also being scanned by the Bank to grant further loans.
Dr Haseeb Drabu, Chairman, CEO of J&K Bank, said:
The idea is to basically give finance and formal credit market accessibility to the people who actually have no access to formal markets.
This is helping unemployed youths of the valley to set up their own business to earn good profit. According to the report, each stall is worth of Rs 5 to Rs 7 lakh in the market. Now, the market has a turnover of Rs 7 crore per month and the Sunday Market has become the most profitable market in Kashmir.