The Finance Department of the Government of Punjab issued a vital notification on November 2, 2023, about the mark-up rates charged on loans and advances inside the country.
The guideline looks to normalize rates to give clearness and consistency in monetary exchanges.
This strategic initiative will likely have far-reaching repercussions for fiscal policy, fostering economic stability, and allowing borrowers and financial institutions to make more informed decisions.
The notification indicates the province’s government’s commitment to creating a favorable financial climate.
In continuation of this department’s even-numbered memorandum of November 29, 2022, it has been determined that the final rate of markup charged on house construction loans and other advances to Government Servants for the fiscal year 2022-23 will be 15.58% per annum.
For advances such as house building advances, motorcycle advances, motorcar advances (if any), or any other advance that a government employee accepts the new interest rates or markup are 15.58% per annum.
These rates apply to the fiscal year 2022-23. Employees who took out advances between July 1, 2022, and June 30, 2023, will be required to pay interest at 15.58%.