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How To Get Loan Relief On Credit Cards, Housing & Auto Finance, Personal Loan

This article is all about How To Get Loan Relief On Credit Cards, Housing & Auto Finance, Personal Loan. Let’s find the right material for the future!

How To Get Loan Relief On Credit Cards, Housing & Auto Finance, Personal Loan

Also Read: How To Decide On The Best Insurance Plan In Pakistan

With the current COVID pandemic sweeping the world economy in its grasp, various businesses are preparing for the inevitable. Trade and exchange have taken a considerable hit already, and Pakistan looks to be at the forefront of impending financial challenges.

Since the first case of the COVID-19 virus appeared on Pakistan’s demographic, leading national economists have predicted a chaotic change in business proceedings throughout the country. People will either lose their jobs, or receive salary cuts from employers who would find it difficult to generate the kind of income that exudes an idealistic sustainability. Companies are most likely to default on previous loans undertaken through consumer financing, housing-to-auto financing, personal loans and – this might hurt – credit cards.

In simple words, the employment sector will take a resounding hit, and Pakistan will find itself in a resolutely tight spot!

So where do we go, when ‘motive becomes illusive’?

The State Bank of Pakistan (SBP) has unveiled a relief payment scheme to make things less difficult at the extreme end. What are these relief schemes, and how will they help an already struggling employment mark-up?

Relief | SBP | Customer Care

As of yet, two variants for customer care have been announced:

  • A customer can get a year’s relief for the payment of loans. They will be given relief on the principal amount of loan whereas they will continue to pay its interest payment without any additional charges.
  • If a customer is running into a deep financial crisis, and can’t even pay his/her loans even after a year, they can request rescheduling and restricting loans.

The aforementioned relief packages apply to any loan payment or financing made in direct correlation to housing and auto-finance, personal loans and credit cards.

Details | Commencement | Deadline

  • Customers could avail the facility from their dealing bank now. It already commenced since it was announced a couple of days ago.
  • Customers could request for this relief through a call to phone banker and through email.
  • Phone bankers will verify your details including CNIC #, Account #, Credit Card #, Date of Birth, etc.
  • There is no need to visit the bank branch, particularly in the prevailing situation.
  • If the phone bankers do not register your request, you may lodge your complaints with the SBP.
  • The deadline for availing this scheme is June 30, 2020.

How To Get Loan Relief On Credit Cards, Housing & Auto Finance, Personal Loan

Let’s consider your merits for approval for a bit…

Eligibility | Qualification | Relief Merit

It all comes down to your credit history, no matter what country you reside in. For customers:

  • Packages like a yearlong deferment payment or rescheduling/restricting of loans will be out of the question.
  • Banks will receive requests – as well as pending requests – and assess their financial vulnerabilities based on their criteria. Customers will be duly notified if changes are needed.

It is common practice for banks to have your personal track record in financing, including source of income, residential addresses (NOCs) and stuff like that. The thing is: you would have to prove it to the bank that why you qualify for a relief package.

Tip: If you’re still looking for small loans, try Easypaisa. They have a small loan fee of 2.5% of loan sum requested, but other than that, their timeframe for accommodating loan instalments is pretty neat for a branchless bank. Think over it!

In the case where you think you qualify for State Bank’s relief schemes but you’re denied by your account holding bank, you can register an official complaint to SBP at [email protected] or 021- 99218148. The central bank will review your request and give its opinion.

 

Requirements | Relief Structure | How To Get Loan Relief On Credit Cards, Housing & Auto Finance, Personal Loan

The most common requirements are CNIC copy, salary slips, bank statements of the last six months, etc.

In the case of self-employment, the bank may ask you to present a guarantee or guarantor.

This facility is available until the end of March 2021. Some of the steps could vary from the above-mentioned details; it generally depends on your bank.

New Loans | Debt Burden Ratio | How To Get Loan Relief On Credit Cards, Housing & Auto Finance, Personal Loan

If you haven’t availed any of the banks’ financing facilities or you are looking for getting one in order to meet your personal expenses, the commercial banks have a facility for you on easy terms.

State Bank of Pakistan (SBP) has increased the Debt Burden Ratio temporarily from 50 percent to 60 percent.

It means if your earning or take-home salary is Rs. 100,000, you can pay a monthly instalment of Rs. 60,000 on personal loans. This loan is required for the urgent requirements for the purpose of business and personal needs.

Moreover, the bank could sanction up to 15 percent more than the required amount if it is needed. For instance, if you qualify for a loan of Rs. 1 million your loan limit could be exceeded to Rs. 1.15 million on your request by the banks you are dealing with. The amount will be repayable equally in the next twelve-monthly bill payments.

Bank will determine the repayment capacity and creditworthiness of the borrowers.

 

Well, there you have it guys! This article was all about the current know-how for Pakistan’s future loan relief schemes. The State Bank of Pakistan has issued these packages for companies – or individuals with positive credit scores – who will most likely be affected harshly due to the coronavirus.

If you have any questions regarding How To Get Loan Relief On Credit Cards, Housing & Auto Finance, Personal Loan, please leave a comment and tell us what you think.

 

Good luck!

Written by Ahsan Gardezi

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