PESHAWAR, Feb 28: The Bank of Khyber (BoK) has introduced consumer finance scheme (CFS) by offering large variety of electric appliances at easy instalments.

“Left with little options in view of the unfavourable investment climate in the province, the BoK has started consumer banking functions to make safe investment by concentrating on the middle and lower middle sections of the society,” said official sources.

“Though the scheme has not yet been formally launched, we have started receiving applications for loans through the designated dealer engaged by the bank for the purpose,” said a senior staff of the BoK, claiming that every application would be processed in seven days to ensure fast delivery of the required items.

The move, the sources said, had been necessitated by decreasing demand for large loans even by a limited clique of major industrial and business groups operating in the province.

“In a situation when large groups want to take loans on their own conditions, the bank has left with the only best option to introduce consumer related finance schemes for its own very survival,” said an official.

The BoK had already signed an agreement with a local business concern dealing in electric appliances of a wide range.

As per the scheme, the loans would be extended for purchasing items involving price(s) between Rs5,000 and Rs99,000, and the consumer(s) would have choices to return the loan in 12, 18, 24 and 36 instalments — at a maximum 14 per cent interest rate.