Banks’ mark-up hike sparks protest

ISLAMABAD: Most of the country’s commercial banks have asked their clients to pay up to three percent more mark-up rates on loans obtained for car leases or similar financing basis, prompting protests from numerous middle class people who bought cars through car-financing loan facilities of banks.

Even customers who had obtained loans on fixed mark-up rates have been instructed by their banks increase the interest on their loans from now on.

According to the banks, the step had been taken in view of the recent rise in interest rates in the country’s market, but interestingly enough the same banks have yet to reveal plans to increase their depositors interest rates. “This is unjustified; how can a bank change the basic condition of a loan agreement?” said an office worker who had obtained a car financing loan on 7.8 percent mark-up last year, which his bank has now raised to 11 percent.

“It’s a coercive act of which State Bank of Pakistan should take notice,” the bank client said. “I would ask other consumers not to for to the false promises banks make when they advertise car-financing loans,” said another man who had obtained a car-financing loan. app

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