Financing Facility of Modernization of SMEs

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State Bank of Pakistan’s (SBP) ‘Refinancing Facility for Modernization of Small and Medium Enterprises (SMEs)’ is for purchase of new/imported plant & machinery for BMR of existing SME units and/or setting up of new units. Financing for purchase of new generators up to a maximum capacity of 500 KVA is also available under this scheme. However, the capacity of generator shall not be in excess of SME Unit’s in-house energy requirements or up to 500 KVA, whichever is less.

Salient Features

  • Financing up to Rs. 100 Million is available to wide range of SME clusters/ sectors such as  (i) Rice Husking, (ii) Cotton Ginning, (iii) Power Looms, (iv) Dairy & Livestock, (v) Cutlery & Stainless Utensils, (vi) Surgical Instruments, (vii) Marble & Granite, (viii) Engineering Goods (Electronics), (ix) Fisheries, (x) Packaging/ Processing of Fruits/ Vegetables, (xi) Furniture, (xii) Gems & Jewellery, (xiii) Sports Goods, (xiv) Agro-based Industry.
  • Tenor is one to Ten years (however, to be fixed as per bank’s lending product)
  • Mark-up Rate: 6% (subject to revision by SBP from time to time)
  • Fast track processing
  • Repayments through equal quarterly/half yearly installments.
  • Mortgage of urban/commercial/industrial properties acceptable to the bank (Maximum financing will be 70% of Forced Sale Value of the security / collateral)
  • Hypothecation of Plant & Machinery/stocks
  • Personal Guarantees of sponsor/partners/directors. Third party Guarantee (optional)

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