How conflict squeezes credit in J&K
Loan interest rates rise and credit availability tightens after incidents of mortar shelling across the international border, finds new study
SURBHI BHATIA : Residents near the international border in Jammu and Kashmir have faced incidents of mortar shelling for years. A new study has found a link between such events and banks’ approach to lending in affected areas. Interest rates tend to go up after an episode of shelling, even as the amounts lent by banks remain unchanged, the study finds.