State Bank of Pakistan

Existing instruction

Revised instruction

The facilities extended to the employees of the banks/DFIs as a part of their compensation package under Employees Service Rules shall not fall in this category.

This condition shall not apply to the consumer financing allowed by the banks/DFIs to their employees as part of compensation package provided the detailed terms and conditions of the benefits which the banks/DFIs want to give to their employees are specifically mentioned in the Employees Service Rules/HR Policy. These employees Service Rules/HR policy should be duly approved by the Board of Directors. Further, such consumer financing to the employees should be treated as staff loans and not as general consumer loans.

b). REGULATION R-3:
TOTAL FINANCING FACILITIES TO BE COMMENSURATE WITH INCOME

In this regulation following new paragraph shall be added:

“Banks/DFIs may waive the requirement of 50% Debt Burden in case a Credit Card and Personal loan is properly secured through liquid assets (as defined in prudential regulations) with minimum 30% margin.”

c). REGULATION R-7:
MAXIMUM CARD LIMIT

In the Regulation R-7, as amended from time to time, following paragraph shall be replaced as under:

Existing instruction	Revised instruction
Banks / DFIs may also allow financing under the credit card scheme in excess of Rs 1,000,000/- (up to Rs 2 million) provided the excess amount is appropriately secured according to the definition given in Part A of these regulations.	Banks/DFIs shall ensure that overall credit card and personal loan limits, both on secured as well as on unsecured basis, availed by one person from all banks/DFIs in aggregate should not exceed Rs 5,000,000/-, at any point in time, subject to the condition that the overall unsecured/clean facilities on account of credit card and personal loan of that individual does not exceed Rs 2,000,000..

d). REGULATION R-23:

In the Regulation R-23, as amended from time to time, following paragraph shall be added:

“Banks/DFIs shall ensure that overall personal loan limits and credit card limits, both on secured as well as on unsecured basis, availed by one person from all banks/DFIs in aggregate should not exceed Rs 5,000,000/-, at any point in time, subject to the condition that the overall unsecured/clean facilities on account of personal loan and credit card of that individual does not exceed Rs 2,000,000.”

As a result of above amendment, instruction concerning secured personal loans (other than secured against liquid assets) mentioned in Regulation R-23 stands withdrawn.

3. All other instructions on the subject remain unchanged.

4. Please acknowledge the receipt.