The loan repayment amount should be submitted on the 1st and 7th of the month. In addition, the Covid-19 impact test is not required for most borrowers. However, if you are facing hardships and need to get cash urgently, you should apply for the BIP (Business Interruption Payment) to avoid a hefty penalty.
Interest-free loan schedule
The Federal Government of Pakistan has announced an interest-free loan schedule for students for the academic year 2022. A student is eligible to apply for the student fee loan program if he has passed the last exam with 70 percent marks or more. This scheme provides financial aid to poor students who otherwise would not be able to finish their studies.
The loan’s initial date is April 10th, and the first payment is due on May 10th. There are no interest charges during this period, but there may be ongoing requirements, including interest payments. Therefore, it is important to know about these obligations before applying for this loan. You should also note that late payments can result in an increased interest rate.
Covid-19 impact test is not required for most borrowers
Under the proposed loan scheme 2022, the Covid-19 impact test would no longer apply to most borrowers. The Bureau sought comments on this issue and received numerous responses on the proposed changes. Commenters emphasized the importance of the current protections against fraud, deception, and abuse. They also expressed concerns about the bureau’s proposed limitation and proposed extension of reasonable diligence protections.
The proposed deadline is thirty days before the end of the COVID-19 forbearance period. This date is similar to the existing GSE guidelines, which require servicers to establish a QRPC thirty days before the end of the subsequent forbearance plan term. The Bureau sought to make the new requirement complementary to existing GSE guidelines and to avoid creating confusion for servicers.
Business Interruption Payment (BIP)
Business interruption payments (BIP) are payments provided by the UK government for up to 12 months following the start of a business loan. These payments are provided to the borrower to cover the costs of the interest incurred while the business is not operating. These payments are capped at 20% of the outstanding balance.
Recovery Loan Scheme is a government-backed loan scheme for businesses. It supports borrowing up to PS10m for individual businesses and PS30m for groups. Funds can be used for legitimate business purposes. However, interest payments will not be covered by the Recovery Loan Scheme. The aim of the scheme is to improve the terms offered by lenders. However, there is no guarantee that recovery loan lenders will offer better terms with the RLS. It is therefore advisable to contact the lender for details.
The BIP is available to small and medium-sized businesses. It provides funding to businesses that are in need of working capital. The scheme is free for eligible businesses, so there are no application fees or annual fees. It also allows eligible companies to borrow up to PS2,000 and PS50,000 from accredited lenders. Furthermore, the government guarantees 100% of the loan amount. Additionally, the BIP will cover the first 12 months of interest payments.