State Bank of Pakistan (SBP) has announced a payment relief to the bank customers against their auto finance, housing finance, personal loans, and credit card payments.
According to the ‘BPRD Circular Letter No. 14 of 2020’ of the State Bank of Pakistan, customers who were regular on their payments up till December 31, 2019, can request the banks to defer the principal amount of installments up to 1 year without any fee or increase in mark-up rate.
The decision was taken to relieve the customers in the testing times when the economic slowdown due to coronavirus pandemic had caused unemployment and a sudden decline in the income of the self-employed group across the country.
A significant section of the customers is likely to benefit from the scheme particularly when the interest rates saw a reduction and the principal payments could be deferred by up to one year.
Bank customers who are unable to service the mark-up amount or need deferment exceeding one year may request the banks to reschedule their facilities.
Borrowers can request for deferment of principal amount or rescheduling of loans by calling from the registered number or from their authorized email addresses, SBP further added.
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 the principal component in installments or rescheduling or restructuring shall not affect the credit history of the borrower and therefore it should not be reported in the ECIB/ private credit Bureau as restructuring.