SBP increases loan allocation for SMEs

Published: August 1, 2018
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Akbar pointed out that the share of SME sector in gross domestic product (GDP) was currently 30%, which could easily be doubled by increasing financing for the sector.


PHOTO:FILE

Akbar pointed out that the share of SME sector in gross domestic product (GDP) was currently 30%, which could easily be doubled by increasing financing for the sector. PHOTO:FILE

FAISALABAD: A dynamic and proactive small and medium enterprises (SME) sector is imperative in order to give a big boost to national economy and in this connection the State Bank of Pakistan (SBP) has doubled loan allocation for the sector from 8% to 16%, emphasised SBP Faisalabad Deputy Chief Manager Muhammad Ali Akbar.

He was speaking at an awareness session organised by the Faisalabad Women Chamber of Commerce and Industry (FWCCI) to educate its members about how to expand their businesses by getting the enhanced credit facility.

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Akbar pointed out that the share of SME sector in gross domestic product (GDP) was currently 30%, which could easily be doubled by increasing financing for the sector.

He specifically mentioned the schemes introduced to facilitate female entrepreneurs, saying in some cases loans would be provided at zero mark-up. In other cases, a maximum 6% mark-up will be charged by commercial banks under the regulations set by the central bank.

“The State Bank has issued directives to commercial banks to strive to meet the loan targets set for female entrepreneurs,” he said.

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“In under-served areas of the country, women may get small loans of up to Rs1.5 million with no mark-up. Loans will be given for a period of five years.”

Akbar highlighted that under another scheme, the female entrepreneurs could get loans of up to Rs50 million with maximum 6% mark-up.

Published in The Express Tribune, August 1st, 2018.

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