Pawning Facilities

20 August 2020: Considering bank lending rates of certain financial products which continue to remain high, licensed banks were instructed to reduce the caps on pawning facilities to 10 per cent per annum for all new pawning advances and existing pawning facilities that are renewed. (Monetary Law Act Order No. 02 of 2020)

27 April 2020: Considering the necessity to provide relief to low income individuals who are engaged in the pawning of gold jewellery to meet short-term financing needs due to the adverse economic situation resulting from the COVID-19, licensed banks were instructed on the maximum interest rate to be charged on pawning advances, i.e., 12 per cent per annum or 1 per cent per month for advances with a tenure of less than one year. (Monetary Law Act Order No. 01 of 2020)