Question:

Is the mark-up rate of Agricultural Credit in SBP higher than the mark-up rate of commercial Credit?

by Guest6438  |  12 years, 10 month(s) ago

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My father is a farmer and belongs to south; he wants to know that is the mark-up rate of Agricultural Credit in state bank of Pakistan higher than the mark-up rate of commercial Credit?

 Tags: agricultural, commercial, credit, Markup, Rate, SBP

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1 ANSWERS

  1. Guest3152
    In the post financial sector reforms era, banks’ markup rates are not fixed by State bank of Pakistan for different sectors but are based on their cost structure and risk profile of the borrowers and the sector. Banks are required to use KIBOR as a bench mark for determining pricing of their loans.

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