SBP announces relief on business loans for KP

KARACHI: The State Bank of Pakistan (SBP) Monday announced the release of third installment of mark-up rate subsidy on business loans for the period from January 01 to June 30,2011 under the Prime Minister's Fiscal Relief Package to rehabilitate the economic life in Khyber Pakhtunkhwa, Federally Administered Tribal Area (FATA) and Provincially Administered Tribal Area (PATA).

Duly completed claims for reimbursement of mark-up rate subsidy for the period from January 01 to June 30, 2011 could be submitted separately for Textile Sector and other eligible sectors to SBP-BSC (Bank), Peshawar up-to August 31, 2011, it added.

SBP has informed all banks/Development Finance Institutions (DFIs)/Microfinance Banks (MFBs) that the rate of mark up differential for 3rd installment, for six months ending on 30th June 2011, has been worked out at 6.18%.

The banks have been asked to calculate the amount of mark up rate differential on outstanding business loans of above areas, on the basis of above rates and keeping in view the terms & conditions contained in above Scheme, according to Circular Letter No. 14 of July 25, 2011.

However, MFBs may calculate mark up rate differential to the extent of 22.5% p.a. i.e. differential between 7.5% p.a. and Weighted Average Lending Rates of MFBs i.e. 30% p.a. or actual rate whichever is lower, as communicated in September, 2010, the Circular Letter added.

Copyright APP (Associated Press of Pakistan), 2011