SBP Credit Guarantee Scheme

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Realizing the importance of SMEs for economic growth and to improve access to formal sources of finance by the Small and Medium Enterprises, particularly, small and low end medium enterprises, State Bank of Pakistan has launched Credit Guarantee Scheme (CGS) for Small and low end Medium Enterprises. The borrowers can borrow under the Scheme without any specific regional or cluster restrictions, across the country. The borrower shall preferably be a fresh customer; however, an existing borrower can also be extended additional lending facility under the Scheme. Under this scheme collateral-deficient borrowers can avail SME Bank facilities.

  • Borrower may be Small and low-end Medium Enterprises.
  • Finance shall preferably be extended to the following enterprises with risk coverage of 60%:
    • Startup Business
    • Women Borrower and
    • Small & low-end Medium Enterprises operating in under-served areas of the country as notified by SBP.
  • Existing borrower can be given additional lending under this scheme.
  • Selection criteria for eligible borrowers will include:
    • Regular and estimable positive cash flows to ensure ability of debt servicing
    • Conformance to Prudential Regulations for SMEs Financing
    • Clean e-CIB record
  • Low-end Medium Enterprises with annual sales turnover of up to Rs. 300M are eligible.
  • SE may be extended financing up to 5 years and up to the maximum amount as allowed under SBP’s PR for small enterprises (currently at Rs. 25M) and low-end medium enterprises (currently at Rs. 50M)
  • Only first time ME borrowers will be eligible under CGS. First time borrowers refer to those MEs which have not already availed any financing facility from any financial institution.

To avail risk coverage against the loan, bank will follow the process and fulfill all terms and conditions as outlined under Credit Guarantee Scheme (CGS) for Small and low-end Medium Enterprises http://www.sbp.org.pk/smefd/circulars/2017/C1.htm.
Note: The information contained in this website is for general information purposes only and is subject to change by SBP / SME Bank Ltd. For latest information on the said scheme, please visit nearest branch of SME Bank Ltd.

 

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