SHC restrains bank from using Kibor on consumer/ home loans

July 26, 2015 Off By Web Desk

KARACHI: The Sindh High Court (SHC) has announced that linking of Kibor bench-mark in respect of the consumer’s financing or home loans are violative to law.

A SHC single bench comprising Justice Aziz-ur-Rehman decreed a suit filed by Dr Shakeel Ahmed Siddiqui and Dr Buland Iqbal, the co-borrowers versus the Pak Libya Holding Company Limited.

According to the judgment, home loans are not only exempted from the applicability of Kibor or otherwise borrowers are not bond to pay mark-up liked with Kibor bench-mark to the bank. Charging of mark-up in violation of ”First re-payment’s schedule” is void.

The bank is directed to take necessary steps for removal of names of co-borrowers from the defaulter list maintained by State Bank of Pakistan.

Salim Salam Ansari and Zeeshan Abdullah appeared on behalf of the co- borrowers whereas Abdul Sattar Lakhani Advocate represented the Pak Libya Holding Company Limited.