a) Available Banks / Financial Institutions (PFIs) +
The State Bank of Pakistan has been operating Credit Guarantee Scheme with the following Financial Institutions:
Muslim Commercial Bank
Bank of Khyber
Allied Bank Limited
Habib Bank Limited
Advans Microfinance Bank Limited
First Women Bank Limited
FINCA Microfinance Bank Limited
National Bank of Pakistan
United Bank Limited
Tameer Microfinance Bank Limited
Al Baraka Bank
Pak Oman Microfinance Bank Limited
Dubai Islamic Bank Pakistan Limited
Further, PFIs for the modified scheme will be notified as finalized.
b) Eligibility of Borrowers +
Borrowers under the Scheme will be micro and small enterprises and farmers with economic landholding.
The borrower shall preferably be a fresh customer; however, an existing borrower can also be extended additional lending facility under the Scheme.
The selection criteria for eligible borrowers will include:
i. Regular and estimable positive cash flows to ensure ability of debt servicing
ii. Conformance to Prudential Regulations for SMEs/Agri/Micro Financing
iii. Clean e-CIB record
c) Risk Coverage +
60% risk coverage shall be provided for loans extended to: Start-up businesses, Women borrowers, and Small and Rural enterprises operating in under-served areas of the country.
For eligible borrowers, other than those mentioned above, the risk coverage to PFIs shall be linked with the value of the underlying collateral and shall operate in the following manner:
i. 60% for Clean Lending
ii. 40% Value of Collateral up to 100% of loan
iii. 20% Value of Collateral Greater than the Loan Amount
In cases, where a loan falls in two categories, higher risk coverage shall prevail.
d) Mark – up / Interest Rates +
SMEs will be charged market-based mark-up rate under the Scheme.
However, in cases where SBP has provided a refinancing facility, mark-up rate allowed by SBP to PFIs under the particular facility shall prevail.
e) Loan Limit +
Small Enterprises (as defined by SME Prudential Regulations) may be extended financing for a maximum tenor of 5 years and upto the maximum amount allowed under SBP’s Prudential Regulations for Small Enterprises.
Microfinance Banks may extend loans from Rs. 150,000 to Rs. 500,000 to Micro Enterprises for a tenor not exceeding 5 years.
Farmers may be extended financing under the Scheme upto the maximum amount of Rs 2 Million. The maximum loan tenor allowed for the purchase of tractors and other agri loan implements under the Scheme is 5 years. However, the aggregate financing under this category shall not exceed 20% of the total allocated guarantee limit of the bank. For purchase of agri inputs, maximum loan tenor under the Scheme is 3 years.
f) Contact Information +
You may contact SMEDA helpdesk for queries or information, if any, regarding the Credit Guarantee Scheme offered by the State Bank of Pakistan.