Please
refer to the Prudential Regulations for Consumer Financing
as amended from time to time.
Based
on the review of prudential regulations and feedback from
banks/DFIs, the following amendments in the regulations
for consumer financing have been made with immediate effect:
A.
MINIMUM CONDITIONS FOR CONSUMER FINANCING
OPERATIONS
1.
At the time of granting facility under various modes of
consumer financing, banks / DFIs shall obtain a written
declaration on the prescribed format attached as Annexure–CF1
from the borrower divulging details of various facilities
already obtained from other banks/financial institutions.
2.
Before allowing any facility, the banks / DFIs shall obtain
a consumer credit report from the Credit Information Bureau
of State Bank of Pakistan or from any consumer Credit
Information Bureau of which they are a member.
REGULATION
R-3
TOTAL
FINANCING FACILITIES TO BE COMMENSURATE WITH THE INCOME
While determining the credit worthiness and repayment
capacity of the prospective borrower the banks / DFIs
shall ensure that the total monthly amortization payments
of consumer loans should not exceed 50% of the net disposable
income of the prospective borrower.
B.
REGULATIONS FOR CREDIT CARDS
REGULATION
R-7
MAXIMUM
CARD LIMIT
Bank/DFI
may issue credit card to one person with a maximum unsecured
limit not exceeding Rs 1,000,000/, subject to mandatory
credit check & prescribed debt burden and condition
that total unsecured credit card limits availed by that
person from all banks/DFIs does not exceed Rs. 1,000,000
As
a result of above upward revision in clean limit for credit
card, regulation concerning prime customers mentioned
in R-7 stands withdrawn.
C.
REGULATIONS FOR HOUSING FINANCE
REGULATION
R-17
MAXIMUM
TENURE OF LOAN
Banks/DFIs
may extend mortgage loans for housing upto any tenure
defined in the bank’s/DFI’s duly approved
credit policy and keeping in view the maturities profile
of their assets & liabilities.
D.
REGULATIONS FOR PERSONAL LOANS INCLUDING LOANS FOR THE
PURCHASE OF CONSUMER DURABLES
REGULATION R-23
CLEAN
LIMIT PER PERSON FOR PERSONAL LOANS
Banks/DFIs
may assign personal loan limits to one person with a maximum
unsecured limit not exceeding Rs 1,000,000/, subject to
mandatory credit check & prescribed debt burden and
condition that total unsecured personal loans limits availed
by that person from all banks/DFIs does not exceed Rs.
1,000,000.
As
a result of above upward revision in clean limit for personal
loans, regulation concerning prime customers mentioned
in R-23 stands withdrawn.
Other
instructions on the subject will remain the same.
Please
acknowledge receipt.
Encl:
As above