Brand Updates & Reviews

JS Bank actively prepares to cope with the impact of COVID-19 pandemic

Though banks are not being directly hit from the global pandemic, they are at the forefront of public attention. Tens of thousands of consumers are facing great trouble from the current lockdown, which if extended longer may develop difficult circumstances for the general public.

At this difficult time, JS Bank actively steps forward to makean impact on the consumers, that this bank has their back and offers ease on policies in this time of need. It has taken the initiative to support its customers and businesses during the COVID-19 pandemic, bringing forth policies with easier terms & conditions of payments and procedure.

Earlier, State Bank of Pakistan (SBP) with the collaboration of Pakistan Banks Association (PBA) announced a relief package for households and businesses (microfinance, SMEs, corporates, commercial, retail, and agriculture) to cope with their finances during the pandemic. The key highlights of package are:

1. Banks’ overall pool of loanable funds has been increased To support the banking sector to supplyadditional loans to businesses and households, SBP has reduced the Capital Conservation Buffer (CCB) from its existing level of 2.50% to 1.50%.
2. The regulatory limit on extension of credit to SMEs has been permanently increased A tool to incentivize banks to provide additional loans to retail SMEs, the existing regulatory retail limit of Rs. 125 million per SME has been permanently enhanced to Rs. 180 million with immediate effect.
3. Borrowing limits for individuals have been increased for one year SBP has relaxed the DBR for consumer loans from 50% to 60%. This measure will allow about 2.3 million individuals to borrow more from banks in this time of need.
4. Payment of principal on loan obligations will be deferred by banks Banks and DFIs will defer thepayment of principal on loans and advances by one year. To avail this relaxation, borrowers must submit a written request to the banks before 30th June 2020. They will, however, continue to service the mark-up amount as per agreed terms and conditions.
5. Regulatory criteria for restructuring/rescheduling of loans have been temporarily relaxed till 31st March 2021 SBP has relaxed the regulatory criteria for restructuring/rescheduling of loans. In addition, the timeline for classification of “Trade Bills” has been extended from 180 days to 365 days.
6. Margin call requirements against bank financing have been reduced Keeping in view the steep decline in share prices, margin call requirement of 30% vis-à-vis banks’ financing against listed shares has beensignificantly reduced to 10%.

SBP and PBA expect that the measures above for the relief plan to be followed by banks across the nation. On that note, JS Bank Limited is currently the only bank working actively in curtailing its financial policies accordingly. JS Bank offers itscustomers the option to defer re-payment of principal in the monthly installment by up to a maximum of 12 months based upon request. As mentioned on their official website, following are the loans with revised policies amidst the global pandemic:

1. JS Zarkhez Agriculture Loans
2. SME Financing
3. JS Gold Finance
4. Prime Minister’s Youth Business Loans

Having the opportunity to defer re-payment of principal in the monthly installment, customers can now have the option to simply pay the Markup component, reducing the amount of the Monthly Installment. All JS Bank customers can now request Deferral of Principal Repayment through their nearest JSBL Branch or Drop box location or contact the banks Contact Center at 0800-011-22 for more information. However, it is to be noted that the last date for submission of requests is 30th June 2020.

We appreciate every effort JS Bank has put forward and surely see its customers benefitting with the given easy loan policies be it on households, agriculture, automobile or any business. Other banks should also take initiatives and work towards the ease of its customers and the people of Pakistan as actively as we see JS Bank put up with its efforts amidst the Covid19pandemic.

Related Articles

Telenor Pakistan receives Employer of Choice Award

Mehreen Ahsaan Qazi

The Song of the Year

Isra Shams

Apple defends App Store amid mounting criticism

Isra Shams