Mark-up subsidy: State Bank to release third installment

Borrowers of FATA, Khyber-Pakhtunkhwa asked to submit claims.

KARACHI:

The State Bank of Pakistan (SBP) has asked borrowers to submit claims for release of third installment of mark-up subsidy on business loans for the period January to June, under the prime minister’s fiscal relief package to rehabilitate economic life in Khyber-Pakhtunkhwa, Federally Administered Tribal Areas (Fata) and Provincially Administered Tribal Areas (Pata).

In a circular issued on Monday, SBP said claims for reimbursement of mark-up subsidy may be submitted separately for the textile and other eligible sectors to SBP-BSC (Bank), Peshawar up to August 31.

SBP said it has told all banks, development finance institutions (DFIs) and microfinance banks (MFBs) that the mark-up differential for the third installment has been worked out at 6.18 per cent.

“Accordingly, banks and DFIs may calculate the amount of mark-up differential on outstanding business loans on the basis of above rates and keeping in view the terms and conditions of the scheme,” it said.

However, microfinance banks may calculate the mark-up differential to the extent of 22.5 per cent per annum ie the difference between 7.5 per cent per annum and weighted average lending rate of 30 per cent of MFBs or actual rate, whichever is lower.

Published in The Express Tribune, July 26^th,  2011.