Considering the response from government employees, National Bank of Pakistan (NBP) has doubled the limit of advance salary loan scheme from Rs0.5 million to Rs1 million. The bank also intends to offer this scheme to its other depositors like the private sector and contractual government employees.
Talking to a group of journalists here on Monday, NBP’s Senior Vice President and Head of Consumer Division Adnan Adil and Senior Vice President Farooq Hassan said the advance salary scheme has received extraordinary response from government employees because of which the bank has also increased the limit of loans against gold jewellery.
The bank has increased the limit of loans against gold jewellery to Rs40,000 from Rs35,000 for every 10 grams of gold, they said, adding government employees can take loans against gold jewellery without any interest.
Shedding light on the success of salary loan scheme, the representatives of NBP said there are 1.8 million accounts of government employees in the bank, of which 1.5 million employees have already benefitted from the salary loan scheme.
Bankers said the advance salary scheme is the single largest personal loan product in the industry with a market share of 52%. Launched in 2003, they said, the scheme was an instant hit and the bank has disbursed over Rs210 billion so far.
NBP has 1,290 branches throughout the country, making it easy for the bank to reach a sizeable number of people.
Published in The Express Tribune, December 11th, 2012.