KARACHI, June 20: The State Bank on Wednesday allowed banks and development finance institutions (DFIs) to assign clean credit card and personal loan limits up to a maximum of Rs5 million with a sub-limit of Rs2 million on clean personal loans to their “prime customers”.

According to a circular issued by the Sate Bank, the higher clean limits facility has been provided to banks and DFIs with a view to providing flexible treatment to their prime customers.

However, aggregate exposure of banks or DFIs in respect of prime customers has been capped at up to 20 per cent of the total exposure on account of credit cards and personal loans, said the circular issued to the presidents and chief executive officers of all banks and DFIs.

The banks and DFIs are also encouraged to set internal limits for such clean financing to prime customers keeping in view their risk appetite and other factors, it said.