As
you are aware SBP has been endeavoring to promote consumer
financing in Pakistan, which has strong linkage effects with
the growth of industrial and trading activities in the country.
It has, therefore, been decided to allow banks to provide
financing facilities to general public (individuals) for purchase
of consumer durables.
Accordingly para III- 3 (Other Advances) of BCD Circular
No. 5 of 5th July 1987 is substituted with the
following:
“III
(3) Other Advances
Minimum
Margin
For
financing goods, including production machinery, commercial
Nil
Vehicle and
consumer durables on hire purchase or installments plan.
2. In order to further
facilitate consumer financing, it has also been decided to
do away with the requirement of submission of the copy of
income tax / wealth tax statement (prescribed under PR-XXVII
relating to “Minimum Information on Borrowers” notified vide
BSD Circular No.10 dated
15th March 2001) by
the borrowers availing above facilities from the bank provided
their consolidated borrowings for the purpose, from the bank
does not exceed Rs 100,000/=.
3.
Banks are encouraged to have properly formulated lending
policies in this regard with adequate delegations of powers
to their branches, for quick disposal of requests from the
interested borrowers.
Please
acknowledge receipt.
|
