Thursday, August 6, 2020  | 15 Zilhaj, 1441
Samaa TV
Facebook Twitter Youtube
HOME > Money

Pakistanis can now borrow up to Rs7m in personal loans

SAMAA | - Posted: Jul 6, 2020 | Last Updated: 1 month ago
Posted: Jul 6, 2020 | Last Updated: 1 month ago
Pakistanis can now borrow up to Rs7m in personal loans

Photo: AFP

If you are among those who plan to study abroad or stretch their credit card purchases but can’t do it because of a financial squeeze on your savings, the central bank has come up with a new measure to help.

You can now borrow up to Rs7 million from a bank or a Development Finance Institution (DFI), which is 40% more than what was previously allowed.

The move, one of the many the central bank has taken in the last three months, is aimed at providing a spur for growth in consumer finance amid the COVID-19 pandemic that has slowed down economic activities and pushed the country’s GDP into negative territory for the first time since 1952.

In the last three months alone, the central bank has slashed its monetary policy rate by 6.25% to 7%.

Clean loan

Under this scheme, there are two types of loans you can avail.

The first is called a clean loan where no collateral or security is required against borrowing. The limit for this category has been increased by 50%. You can now borrow Rs3 million for your education or startup compared to the previous limit of Rs2 million.

This applies to credit cards plus personal loans without providing any of your personal assets as security.

Clean and secured loan

The second type is clean and secured loans where the SBP has clubbed clean loans with secured loans. Secured loans are those for which you have to put up some asset as surety or collateral with the bank. This simply means that in case of default, the bank can use the asset to repay the funds it has given to you as a loan.

Prime customers

The central bank has also revised the credit limit for prime customers. These are clients with high net worth who make their payments on time, have a good track record and loan history, and are financially sound. The SBP has increased the clean loan (one without any security or collateral) limit for prime customers by 40% or Rs2 million.

Prime customers can avail an up to Rs7 million loan (credit card + personal loan) compared to the previous limit of Rs5 million. However, it is subject to one condition: the amount of the personal loan should not exceed Rs4 million. In case a prime customer reaches this limit they can avail the remaining amount (Rs3 million) on a credit card.

The SBP also said that the credit limits in all three cases are on aggregate terms. This means that the limits assigned are on the total amount of loan taken by a person from all the banks/DFIs together.

FaceBook WhatsApp


  1. William  July 8, 2020 11:05 pm/ Reply

    How I can apply for this loan? Thank you

  2. Ghulam shabbir  July 10, 2020 6:53 pm/ Reply

    please help me money

Tell us what you think:

Your email address will not be published.

FaceBook WhatsApp

Per tola price of gold increases by Rs750
What was Pakistan’s dollar rate when you were born?
Gold hits a record high, what’s next?
Pakistan petrol price goes up by Rs3.86
Online qurbani didn’t quite cut it this Eid
PIA to operate Paris to Pakistan flights from August 15
Pakistan petrol prices expected to increase by Rs7
About Us   |   Anchor Profiles   |   Online Advertising   |   Contact Us   |   Feedback   |   Apps   |   FAQs   |   Authors   |   Comment Policy
Facebook   |   Twitter   |   Instagram   |   YouTube   |   WhatsApp