Refinancing for Female Entrepreneurs
The Scheme
Small and Medium Enterprises (SMEs) play an important role in creation of employment opportunities, economic growth and poverty reduction. In order to encourage SMEs to modernize their factories for producing quality products and to meet their power shortages, State Bank of Pakistan (SBP) had introduced Refinance Facility for Modernization of SMES
Salient Features
- Financing facility is available for SME borrowers as defined in Prudential Regulations of SBP for SMEs through Bank Alfalah branches
- Financing is available for local purchase/import of new machinery for BMR of existing SMEs units setting up of new SMEs units and for purchase of new Generators up-to 500 KVA
- Financing is available only against LCs in case of financing against imported plant and machinery.
- Financing is available to the extent of the CiF value of the imported new plant and machinery and / or ex-factory/showroom price of the new locally manufactured machinery
- Principal amount of loan is repayable in equal quarterly / half yearly installments after prescribed grace period, if any. Markup is payable on quarterly basis
Tenor of Financing
- The facility is available for maximum period of ten years including six months grace period.
Mark up Rates
- Financing is available at mark-up rate of 6 percent per annum
