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HomeGeneralThe State Bank of Pakistan (SBP) has imposed additional lending terms

The State Bank of Pakistan (SBP) has imposed additional lending terms

The State Bank of Pakistan (SBP) has imposed new conditions on loans taken from banks in various forms to stabilize the rupee and reduce imports.

The State Bank of Pakistan announced efforts to limit imports, stabilise the rupee’s value, and tighten consumer lending terms.

According to a statement released by the State Bank of Pakistan, no loans would be provided for the purchase of any imported cars, and loans for domestically produced vehicles will be for five years instead of seven.

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The length of a personal loan has been lowered from five to four years, and the capacity of consumer loans has been reduced from 50 to 40%, according to the release.

The State Bank of Pakistan has established a maximum loan ceiling of Rs 3 million for automobile finance, with a 30 percent down payment requirement, up from 15 percent before.

These terms will not apply to 1000cc automobiles, locally made electric vehicles, or financing through the Roshan Digital Account, according to the SBP.

Furthermore, the new restrictions will not apply to Roshan’s own automobile plan for Pakistanis living abroad. These steps, according to the SBP, will improve the balance of payments by lowering imports.

The Deposit Protection Corporation has decided to increase the amount of guarantee for all eligible depositors of banks from Rs. 250,000 to Rs. 500,000. This decision was taken by the Board members of the Corporation in their meeting that was held earlier.

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