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 SBP said “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.”
“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 authorized email addresses,” the bank concluded.
