Banks defer Rs236bn principal repayments due to lockdown.

KARACHI -- More than 0.3 million borrowers have availed the State Bank of Pakistan's (SBP) deferment facility to delay principal payments against their loans for one year.

'Approximately 303,000 borrowers have been able to defer their principal payments amounting to Rs236 billion,' the SBP said on Monday.

More and more borrowers are benefitting from the relief package to extend loan principal repayments by one year, said the central bank.

The SBP had, on April 20 allowed banks and development finance institutions to defer principal payments to help businesses during the pandemic. To avail this relaxation, borrowers were advised to submit a written request to the banks before June 30.

The borrowers will, however, continue to service the mark-up amount as per agreed terms and conditions. The deferment of principal will not affect borrower's credit history and such facilities will also not be reported as restructured/rescheduled in the credit bureau's data.

The total principal amount of principal due over the...