The State Bank of Pakistan (SBP) on Monday announced the release of third installment of mark-up rate subsidy on business loans for the period January 1 to June 30 under the Prime Minister’s Fiscal Relief Package. The package is intended 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 mentioned above may be submitted separately for Textile Sector and Other Eligible Sectors to SBP-BSC (Bank), Peshawar up-to August 31, 2011.
SBP has informed all Development Finance Institutions (DFIs) and Microfinance Banks (MFBs) that the rate of mark up differential for third installment is 6.18 percent.
“Accordingly, banks and DFIs may calculate the amount of mark up rate differential on outstanding business loans, on the basis of above rates and keeping in view the terms and conditions contained in the above scheme,” says IH & SMEFD Circular Letter No. 14 of July 25, 2011.
However, MFBs may calculate mark up rate differential to the extent of 22.5 percent per annum i.e. differential between 7.5 percent per annum and weighted average lending rates of MFBs i.e. 30 percent per annum or actual rate, whichever is lower, as communicated in September 2010, the Circular Letter added.
