SBP allows one year moratorium on consumer loans’ principle

KARACHI: The State Bank of Pakistan (SBP) has announced relief for the consumers amid coronavirus outbreak.

The banks and development finance institutions (DFIS) would defer the principal amount on consumer loans for one year to facilitate borrowers.

The SBP’S official twitter account posted that borrowers availing consumer finance for auto, housing, and personal loans and credit cards, who were regular on their payments up till December 31, 2019 could request banks to defer principal amount for one year without fee or increase in mark-up. However, it said that they would continue to service the mark-up amount.

“Borrowers who are unable to service the markup amount or need deferment exceeding one year, may request the bank to reschedule/ restructure their facilities,” it added. The SBP said this will not affect the credit history of the borrower.

Earlier, the central bank in a circular incorporating revised prudential regulations said that banks/ DFIS, upon a written request of an obligor received before June 30, 2020, would offer deferral of principal comportment of instalments for one year, unless the customer requests for a shorter period, at no fee or increase in mark-up rate or mark-up on mark-up; provided that the obligor would continue to service the mark-up amount as per agreed terms and conditions.

Earlier the State Bank of Pakistan (SBP) allowed importer to advance payment and open account without any limit for the import of medical equipments, medicines and other ancillary items for the treatment of COVID-19.