Document background
The Consumer Credit Contract serves as the primary legal instrument for extending credit facilities to individual consumers in Pakistan. This document is essential for financial institutions operating under Pakistani jurisdiction, whether offering conventional or Islamic banking products. It is used when providing personal loans, consumer financing, or credit facilities to individual customers. The agreement incorporates all regulatory requirements set by the State Bank of Pakistan, including mandatory disclosures, interest/profit calculation methods, and consumer protection provisions. It addresses both the lender's risk management needs and the borrower's right to transparent information, making it suitable for Pakistan's evolving financial services landscape. The document is structured to accommodate various credit products while ensuring compliance with local banking laws, consumer protection regulations, and where applicable, Shariah principles.
