ISLAMABAD - State Bank of Pakistan (SBP) has decided that mark-up rates for end users under Long Term Financing Facility (LTFF) shall be nine per cent for a maximum period of financing up-to 10 years, with effect from July 01, 2014, according to the IH&SMEFD circular number six of 2014 issued to all Banks/DFIs.
However, spread of Participating Financial Institutions (PFIs) shall remain the same viz. 1.50 per cent , 2.50 per cent & three per cent for financing up-to three years, five years & 10 years respectively without changing maximum rate for end users (viz 9.00 percent ).
SBP's refinance rates will be adjusted accordingly for each term of financing. Other instructions on the subject shall remain unchanged.