SBP allows one-year moratorium on consumer loans’ principle

KARACHI: In a major development keeping in view the coronavirus situation, the State Bank of Pakistan (SBP) has said that banks and development finance institutions (DFIs) would defer the principal amount on consumer loans for one year to facilitate borrowers in the wake of covid-19, the bank announced on its official Twitter account here the other day.  

The SBP said 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. They would continue to service the mark-up amount, it added.

“Borrowers who are unable to service the mark-up amount or need deferment exceeding one year, may request the bank to reschedule/ restructure their facilities,” it further said. 

“If the rescheduling/restructuring is done within 180 days of the loans being past due, such financing facilities will continue to be treated as regular,” it added. “Borrowers would be able to request for deferment or principal amount of rescheduling/restructuring of loans at the Call Centre through recorded lines from registered number or from their authorised email addresses,” the bank concluded. 

(1/4)Borrowers availing consumer finance (auto, housing, personal loans, credit card)& who were regular on their payments up till 31Dec19 can request banks to defer principal amount for 1 year without any fee or increase in markup.They will continue to service the mark-up amount.

— SBP (@StateBank_Pak) March 30, 2020

(2/4) Borrowers who are unable to service the mark-up amount or need deferment exceeding one year, may request the bank to reschedule/ restructure their facilities. For details: https://t.co/uvYuwJygmc

— SBP (@StateBank_Pak) March 30, 2020

(3/4) If the rescheduling/restructuring is done within 180 days of the loans being past due, such financing facilities will continue to be treated as regular. The deferment of principal component or rescheduling/restructuring shall not affect the credit history of the borrower.

— SBP (@StateBank_Pak) March 30, 2020

(4/4) Borrowers can request for deferment or principal amount of rescheduling/restructuring of loans at Call Centre through recorded lines from registered number or from their authorized email addresses. For details: https://t.co/uvYuwJygmc

— SBP (@StateBank_Pak) March 30, 2020