Banks’ borrowers can ask to defer fee on principal amount
KARACHI: The State Bank of Pakistan (SBP) on Monday announced regulatory relief measures for consumer financing amid the coronavirus outbreak. Under the new measures, eligible borrowers can request a one-year deferment of their loan principal without any fee or increase in markup.
In a tweet, the SBP said borrowers with auto loans, housing loans, personal loans, and credit card facilities could benefit from the relief. However, borrowers must have maintained regular payments up to December 31, 2019, to qualify.
The SBP clarified that borrowers would still need to pay the markup amount during the deferment period. The relief applies only to the principal amount of their loans.
SBP Offers Additional Relief to Borrowers
The central bank also addressed borrowers who cannot afford to pay the markup amount. These borrowers can request their banks to reschedule or restructure their financing facilities if they need a deferment of more than one year.
According to the SBP, banks must complete the rescheduling or restructuring within 180 days of the loans becoming overdue. In such cases, the financing facilities will continue to be classified as regular.
Loan Deferment Will Not Affect Credit History
The SBP further stated that the regulatory relief would not negatively affect borrowers’ credit histories.
The measures aim to ease financial pressure on consumers during the coronavirus outbreak. They also provide eligible borrowers with additional time to manage their loan repayments without facing extra fees or higher markup rates.
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